Insider trading activity at Cardinal Health has recently attracted attention due to significant share sales by top executives.
CEO Jason M. Hollar sold 46,455 shares on August 19, 2023, at an average price of $109.02, resulting in a total transaction value of approximately $5.06 million. Following this transaction, Hollar now holds 197,636 shares, valued at around $21.55 million, reflecting a 0.00% change in his ownership position.
CFO Aaron E. Alt also participated in the selling spree, offloading 2,323 shares for a total of $252,997.93. After this transaction, Alt's direct ownership stands at 36,867 shares, valued at about $4.02 million, which similarly represents no change in his overall position.
The recent sales by both executives come amid a broader trend of insider selling at Cardinal Health, with insiders having sold a total of 113,963 shares valued at approximately $12.38 million over the past ninety days. Currently, insiders own just 0.15% of the company's stock, raising questions about their confidence in the company's trajectory.
Institutional investors have shown interest in Cardinal Health, despite the insider selling. Point72 Asset Management L.P. acquired a new stake valued at approximately $90.44 million during the second quarter. Acadian Asset Management LLC increased its holdings by 19.1% in the first quarter, now owning 3,723,159 shares worth around $416.59 million after purchasing an additional 598,002 shares. This influx of institutional investment suggests confidence in Cardinal Health's potential, even as insider activity raises concerns.
Analysts have mixed opinions on Cardinal Health's stock, with a "Moderate Buy" rating prevailing among experts. UBS Group raised its price target from $125.00 to $134.00, indicating a potential upside of 19.79% from the previous close. Citigroup lowered its price objective from $115.00 to $107.00, assigning a "neutral" rating. Other firms, such as Robert W. Baird and JPMorgan Chase & Co., have also adjusted their price targets, reflecting a range of sentiments about the stock's future performance. The consensus target price currently stands at $120.18, with one sell rating, four hold ratings, seven buy ratings, and one strong buy rating.
Cardinal Health operates as a healthcare services and products company, serving various sectors including hospitals, pharmacies, and clinical laboratories. The company recently reported quarterly earnings that exceeded analysts' expectations, with earnings per share of $1.84, surpassing the consensus estimate of $1.74. Revenue for the quarter reached $59.87 billion, up 12.1% compared to the same period last year, indicating strong growth in a competitive market.
Despite the positive earnings report, Cardinal Health's stock performance has been somewhat volatile. The stock traded down $0.46 to $111.86 during a recent session, with an average trading volume significantly lower than its typical activity. The company's market capitalization stands at $27.25 billion, with a price-to-earnings ratio of 49.72, suggesting that investors are willing to pay a premium for its shares. Analysts anticipate that Cardinal Health will post earnings of $7.61 per share for the current fiscal year, reflecting ongoing confidence in its operational capabilities.
As the healthcare sector continues to evolve, investors and analysts will closely monitor Cardinal Health's strategic positioning and financial performance. The recent insider trading activity, institutional interest, and mixed analyst ratings provide a complex picture of the company's current standing and future prospects.