Cardinal Health Inc. [CAH] stock Downgrade by Deutsche Bank analyst, price target now $51


Cardinal Health Inc. [NYSE: CAH] closed the trading session at $51.03 on 01/10/22. The day’s price range saw the stock hit a low of $48.42, while the highest price level was $51.27. The company report on January 10, 2022 that Cardinal Health Provides Medical Segment Fiscal Year 2022 Financial Update.

Cardinal Health (NYSE: CAH) today provided a fiscal year 2022 financial update for the Medical segment. The company now expects additional inflationary impacts and lower volumes resulting primarily from global supply chain constraints, and a lower-than-expected offset from pricing actions. The company estimates this incremental impact will be approximately $150 million to $175 million to fiscal year 2022 Medical segment profit and approximately $0.40 to $0.45 per share to non-GAAP diluted EPS. Excluding this impact to the Medical segment and non-GAAP diluted EPS, the company’s other financial expectations1 for fiscal year 2022 remain unchanged.

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Cardinal Health continues to take actions to drive performance in the Medical segment, including: simplifying its operating model, evolving its commercial contracting strategies and driving mix, and making investments in its growth businesses. Additionally, the company reaffirms its previously announced long-term financial targets, expense reduction initiatives, and capital deployment priorities.

The stocks have a year to date performance of -0.89 percent and weekly performance of -1.88 percent. The stock has been moved at -10.63 percent over the last six months. The stock has performed 5.26 percent around the most recent 30 days and changed 4.74 percent over the most recent 3-months.

If compared to the average trading volume of 3.24M shares, CAH reached to a volume of 8744886 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about 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 $57.46 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 2.80. 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 1.37, 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 10.52, with the Price to Cash per share for the same quarter was set at 9.03. Price to Free Cash Flow for CAH in the course of the last twelve months was 25.40 with Quick ratio for the last quarter at 0.60.

CAH stock trade performance evaluation

Cardinal Health Inc. [CAH] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.88. With this latest performance, CAH shares gained by 5.26% in over the last four-week period, additionally sinking by -10.63% over the last 6 months – not to mention a drop of -8.45% 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 50.95, with the RSI for the last a single of trading hit 47.07, and the three-weeks RSI is set at 52.20 for Cardinal Health Inc. [CAH]. The present Moving Average for the last 50 days of trading for this stock 49.62, while it was recorded at 52.74 for the last single week of trading, and 53.97 for the last 200 days.

Cardinal Health Inc. [CAH]: An insightful look at the core 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.

Earnings per share (EPS) analysis for Cardinal Health Inc. [CAH] stock

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 7.11%.

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Cardinal Health Inc. [CAH]: Insider Ownership positions

There are presently around $12,196 million, or 88.90% of CAH stock, in the hands of institutional investors. The top three institutional holders of CAH stocks are: VANGUARD GROUP INC with ownership of 36,893,901, which is approximately 3.22% of the company’s market cap and around 0.40% of the total institutional ownership; BLACKROCK INC., holding 24,547,669 shares of the stock with an approximate value of $1.25 billion in CAH stocks shares; and STATE STREET CORP, currently with $970.49 million in CAH stock with ownership of nearly 10.033% of the company’s market capitalization.

Positions in Cardinal Health Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 384 institutional holders increased their position in Cardinal Health Inc. [NYSE:CAH] by around 18,473,645 shares. Additionally, 323 investors decreased positions by around 21,234,720 shares, while 129 investors held positions by with 199,286,565 shares. The mentioned changes placed institutional holdings at 238,994,930 shares, according to the latest SEC report filing. CAH stock had 61 new institutional investments in for a total of 1,394,872 shares, while 89 institutional investors sold positions of 3,988,698 shares during the same period.