What’s Causing Cardinal Health Inc (CAH) Stock’s 17.41% Jump Over the Last Six Months?

Leerink Partners has recently initiated Cardinal Health Inc (CAH) stock to Outperform rating, as announced on February 26, 2024, according to Finviz. Earlier, on February 9, 2024, Argus had raised the stock from a Hold to Buy. Barclays also initiated Overweight rating with a price target of $117. Additionally, Wells Fargo initiated Underweight rating on December 14, 2023, with a target price of $96. Evercore ISI analysts, in their report published on July 10, 2023, also reduced rating and set a price target of $100 for Cardinal Health Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.


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Cardinal Health Inc (CAH) Stock Trading Recap

On Friday, Cardinal Health Inc (CAH) stock saw a modest uptick, ending the day at $116.13 which represents a slight increase of $7.61 or 7.01% from the prior close of $108.52. The stock opened at $112.87 and touched a low of $112.87 during the day, reaching a high of $119.13. The volume of shares traded was 3.87 million exceeding the average volume of 1.87 million.

CAH Stock Performance and Moving Averages

In recent trading, Cardinal Health Inc (CAH) stock price has shown some volatility, fluctuating 4.73% over the last five trades and 5.24% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 17.41%, and it has gained 18.07% in the previous three months. Currently, CAH is trading at 3.73%, 3.98%, and 10.01% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, CAH, a Healthcare sector stock, is trading 0.07% below its 52-week high but remains 27.56% above its 52-week low. The Average True Range (ATR) (14 days) of 2.36 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

Cardinal Health Inc’s Profitability and Valuation Ratios

Cardinal Health Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 0.94% and a profit margin of 0.37%, with a gross margin of 17.41%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, Cardinal Health Inc’s market capitalization stands at $28.10 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 33.49, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 13.54. Additionally, the Price-to-Sales Ratio is 0.12, reflecting the market’s valuation of the company’s sales.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.28% of Cardinal Health Inc (CAH)’s shares, while financial institutions hold 89.87%.

Notable insider trades include Mayer Jessica L, Chief Legal/Compliance Officer at Cardinal Health Inc (CAH), who sold 16573 shares on Aug 21 ’24, at $109.39 each, totaling $1.81 million. On Aug 15 ’24, Mayer Jessica L, Chief Legal/Compliance Officer, sold 17896 shares for $106.48 each, amounting to $1.91 million. Additionally, on Aug 19 ’24, Alt Aaron E sold 2323 shares at $108.91 each, generating $0.25 million.

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