Market Analysts see Cardinal Health Inc. [CAH] falling to $51. Time to buy?

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Cardinal Health Inc. [NYSE: CAH] price plunged by -0.67 percent to reach at -$0.32. The company report on October 12, 2021 that Business solutions for the next public health emergency.

Cardinal Health (NYSE: CAH) announced its Strategic Stock Solution now serves nearly 40 hospitals and health systems nationwide, just one year after its launch.

In October last year, the U.S. healthcare system faced what was one of the deadliest surges of the pandemic to date1. As health systems began placing massive orders for COVID-19 supplies and personal protective equipment (PPE), Cardinal Health acted with urgency to create its Strategic Stock Solution, now a critical blueprint for pandemic preparedness which gives customers the ability to order and store supplies in a Cardinal Health warehouse and provides product shipping within 72 hours of request.

A sum of 3574752 shares traded at recent session while its average daily volume was at 2.96M shares. Cardinal Health Inc. shares reached a high of $48.15 and dropped to a low of $47.20 until finishing in the latest session at $47.74.

The one-year CAH stock forecast points to a potential upside of 17.39. The average equity rating for CAH stock is currently 2.90, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on Cardinal Health Inc. [CAH]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for CAH shares is $57.79 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on CAH stock is a recommendation set at 2.90. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Deutsche Bank have made an estimate for Cardinal Health Inc. shares, keeping their opinion on the stock as Hold, with their previous recommendation back on August 06, 2021. While these analysts kept the previous recommendation, BofA Securities dropped their target price from $69 to $56. The new note on the price target was released on August 05, 2021, representing the official price target for Cardinal Health Inc. stock. Previously, the target price had yet another drop from $66 to $64, while Robert W. Baird kept a Neutral rating on CAH stock.

The Average True Range (ATR) for Cardinal Health Inc. is set at 1.01, with the Price to Sales ratio for CAH stock in the period of the last 12 months amounting to 0.08. The Price to Book ratio for the last quarter was 7.70, with the Price to Cash per share for the same quarter was set at 11.94. Price to Free Cash Flow for CAH in the course of the last twelve months was 10.12 with Quick ratio for the last quarter at 0.60.

CAH Stock Performance Analysis:

Cardinal Health Inc. [CAH] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.89. With this latest performance, CAH shares dropped by -8.42% in over the last four-week period, additionally sinking by -21.57% over the last 6 months – not to mention a drop of -0.38% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for CAH stock in for the last two-week period is set at 27.69, with the RSI for the last a single of trading hit 22.87, and the three-weeks RSI is set at 31.27 for Cardinal Health Inc. [CAH]. The present Moving Average for the last 50 days of trading for this stock 51.51, while it was recorded at 48.45 for the last single week of trading, and 55.60 for the last 200 days.

Insight into Cardinal Health Inc. Fundamentals:

Operating Margin for any stock indicates how profitable investing would be, and Cardinal Health Inc. [CAH] shares currently have an operating margin of +1.12 and a Gross Margin at +3.91. Cardinal Health Inc.’s Net Margin is presently recorded at +0.38.

Return on Total Capital for CAH is now 20.74, given the latest momentum, and Return on Invested Capital for the company is 7.44. Return on Equity for this stock inclined to 34.13, with Return on Assets sitting at 1.43. When it comes to the capital structure of this company, Cardinal Health Inc. [CAH] has a Total Debt to Total Equity ratio set at 374.93. Additionally, CAH Total Debt to Total Capital is recorded at 78.94, with Total Debt to Total Assets ending up at 15.11. Long-Term Debt to Equity for the company is recorded at 320.44, with the Long-Term Debt to Total Capital now at 67.47.

Reflecting on the efficiency of the workforce at the company, Cardinal Health Inc. [CAH] managed to generate an average of $12,918 per employee. Receivables Turnover for the company is 18.69 with a Total Asset Turnover recorded at a value of 3.81.Cardinal Health Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 1.10.

CAH Stock EPS

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for CAH. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Cardinal Health Inc. go to 6.57%.

Cardinal Health Inc. [CAH] Insider Position Details

There are presently around $11,798 million, or 89.40% of CAH stock, in the hands of institutional investors. The top three institutional holders of CAH stocks are: VANGUARD GROUP INC with ownership of 35,742,851, which is approximately -1.013% of the company’s market cap and around 0.30% of the total institutional ownership; BLACKROCK INC., holding 26,323,258 shares of the stock with an approximate value of $1.26 billion in CAH stocks shares; and STATE STREET CORP, currently with $825.13 million in CAH stock with ownership of nearly -1.181% of the company’s market capitalization.

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Positions in Cardinal Health Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 382 institutional holders increased their position in Cardinal Health Inc. [NYSE:CAH] by around 20,491,890 shares. Additionally, 343 investors decreased positions by around 19,076,241 shares, while 139 investors held positions by with 207,567,186 shares. The mentioned changes placed institutional holdings at 247,135,317 shares, according to the latest SEC report filing. CAH stock had 74 new institutional investments in for a total of 3,526,051 shares, while 85 institutional investors sold positions of 2,209,482 shares during the same period.

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