Cardinal Health (NYSE:CAH) Shares Gap Up Following Better-Than-Expected Earnings

Cardinal Health, Inc. (NYSE:CAH) gapped up prior to trading on Wednesday following a stronger than expected earnings report. The stock had previously closed at $102.58, but opened at $109.00. Cardinal Health shares last traded at $107.38, with a volume of 636,654 shares changing hands.

The company reported $1.84 earnings per share for the quarter, topping the consensus estimate of $1.72 by $0.12. Cardinal Health had a net margin of 0.25% and a negative return on equity of 54.74%. The company had revenue of $59.87 billion for the quarter, compared to analyst estimates of $58.74 billion. During the same period in the prior year, the business posted $1.55 earnings per share. The firm’s revenue for the quarter was up 12.1% compared to the same quarter last year.

Analysts Set New Price Targets

CAH has been the topic of several research reports. Citigroup lowered their target price on Cardinal Health from $115.00 to $107.00 and set a “neutral” rating on the stock in a report on Friday, July 19th. Argus dropped their target price on shares of Cardinal Health from $120.00 to $115.00 and set a “buy” rating for the company in a report on Wednesday, May 15th. StockNews.com downgraded shares of Cardinal Health from a “strong-buy” rating to a “buy” rating in a report on Thursday, August 8th. Wells Fargo & Company dropped their price objective on shares of Cardinal Health from $96.00 to $94.00 and set an “underweight” rating for the company in a research note on Monday, April 29th. Finally, Robert W. Baird lifted their price objective on Cardinal Health from $129.00 to $130.00 and gave the stock an “outperform” rating in a research report on Tuesday, July 9th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and eight have issued a buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $109.67.

Institutional Investors Weigh In On Cardinal Health

Hedge funds have recently made changes to their positions in the business. Clearstead Trust LLC acquired a new position in Cardinal Health during the fourth quarter worth approximately $25,000. Cultivar Capital Inc. purchased a new stake in shares of Cardinal Health during the 2nd quarter valued at $27,000. Raleigh Capital Management Inc. increased its holdings in shares of Cardinal Health by 4,466.7% during the 4th quarter. Raleigh Capital Management Inc. now owns 274 shares of the company’s stock worth $28,000 after buying an additional 268 shares during the last quarter. Ashton Thomas Private Wealth LLC purchased a new position in shares of Cardinal Health in the 2nd quarter worth $29,000. Finally, YHB Investment Advisors Inc. acquired a new position in Cardinal Health in the first quarter valued at $32,000. Institutional investors and hedge funds own 87.17% of the company’s stock.

Cardinal Health Price Performance

The stock has a market cap of $25.91 billion, a PE ratio of 47.27, a P/E/G ratio of 1.14 and a beta of 0.61. The stock has a 50-day simple moving average of $98.97 and a 200-day simple moving average of $103.18.

About Cardinal Health

Cardinal Health, Inc operates as a healthcare services and products company in the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, physician offices, and patients in the home.