What is Cardinal Health Inc. (CAH) Stock Return on Shareholders’ Capital?

Cardinal Health Inc. (NYSE: CAH) stock fell -0.93% on Friday to $59.76 against a previous-day closing price of $60.32. With 3.58 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.38 million shares. During the session, the Medical Distribution company that operates in wider Healthcare sector, reached to the highest price of $60.54 whereas the lowest price it dropped to was $59.05. The 52-week range on CAH shows that it touched its highest point at $64.53 and its lowest point at $45.85 during that stretch. It currently has a 1-year price target of $60.00. With its current market cap of 15.88 billion, CAH has annualized dividend of $1.98 while the current yield stands at 3.32%. Beta for the stock currently stands at 0.86.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CAH was up-trending over the past week, with a rise of 3.39%, but this was up by 12.54% over a month. Three-month performance surged to 2.89% while six-month performance rose 15.88%. The stock gained 0.32% in the past year, while it has gained 16.06% so far this year. A look at the trailing 12-month EPS for CAH yields -3.55 with Next year EPS estimates of 5.39. For the next quarter, that number is 1.18. This implies an EPS growth rate of 116.50% for this year and 3.99% for next year. EPS is expected to grow by 3.62% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -13.60%.

Float and Shares Shorts:

At present, 275.00 million CAH shares are outstanding with a float of 271.23 million shares on hand for trading. On Jul 14, 2022, short shares totaled 6.54 million, which was 2.40% higher than short shares on Jun 14, 2022. In addition to Mr. Michael C. Kaufmann as the firm’s CEO & Director, Mr. Jason M. Hollar serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 89.57% of CAH’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.56% of CAH, in contrast to 37.19% held by mutual funds. Shares owned by individuals account for 3.17%. As the largest shareholder in CAH with 11.96% of the stake, The Vanguard Group, Inc. holds 32,584,112 shares worth 32,584,112. A second-largest stockholder of CAH, SSgA Funds Management, Inc., holds 21,802,799 shares, controlling over 8.00% of the firm’s shares. T. Rowe Price Associates, Inc. is the third largest shareholder in CAH, holding 14,898,983 shares or 5.47% stake. With a 2.95% stake in CAH, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 8,036,473 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 2.30% of CAH stock, is the second-largest Mutual Fund holder. It holds 6,271,770 shares valued at 327.83 million. Vanguard 500 Index Fund holds 2.21% of the stake in CAH, owning 6,030,279 shares worth 315.2 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, CAH reported revenue of $44.84B and operating income of $466.00M. Over the past year, revenue came in at $176.85B while operating income stood at -$470.00M. It generated -$1.39B net income for the quarter, which came to -$955.00M over the last twelve months. The EBITDA in the recently reported quarter was $644.00M and diluted EPS was -$5.05. EBITDA for the full year was $2.26B.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CAH since 15 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 10 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 2 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CAH analysts setting a high price target of $70.00 and a low target of $51.00, the average target price over the next 12 months is $59.92. Based on these targets, CAH could surge 17.14% to reach the target high and fall by -14.66% to reach the target low. Reaching the average price target will result in a growth of 0.27% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CAH will report FY 2022 earnings on 08/10/2023. Analysts have provided yearly estimates in a range of $5.21 being high and $5.15 being low. For CAH, this leads to a yearly average estimate of $5.19. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Cardinal Health Inc. surprised analysts by -$0.07 when it reported $1.45 EPS against a consensus estimate of $1.52. The surprise factor in the prior quarter was $0.04. Based on analyst estimates, the high estimate for the next quarter is $1.20 and the low estimate is $1.13. The average estimate for the next quarter is thus $1.18.

Summary of Insider Activity:

Insiders traded CAH stock several times over the past three months with 0 Buys and 2 Sells. In these transactions, 0 shares were bought while 12,915 shares were sold. The number of buy transactions has increased to 21 while that of sell transactions has risen to 18 over the past year. The total number of shares bought during that period was 352,928 while 247,754 shares were sold.

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