Technicals Say Cardinal Health Inc. (CAH) Is Worth Holding


As of Friday close, Cardinal Health Inc.’s (NYSE:CAH) stock was down -$0.89, moving down -1.26 percent to $69.62. The average number of shares traded per day over the past five days has been 2,865,420 shares. 1 time new highs have been achieved over the past 5 days, with a -$1.57 fall in that time frame. In the last twenty days, the average volume was 2,770,970, while in the previous 50 days, it was 2,635,604.

Since last month, CAH stock retreated -11.40%. Shares of the company fell to $68.84 on 03/17/23, the lowest level in the past month. A 52-week high of $81.57 was reached on 02/03/23 after having rallying from a 52-week low of $49.70. Since the beginning of this year, CAH’s stock price has dropped by -9.43% or -$7.25, and marked a new high 5 times. However, the stock has declined by -14.65% since its 52-week high.

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CAH stock investors should be aware that Cardinal Health Inc. (CAH) stock had its last reported insider trading activity 123 days ago on Nov 15. Brennan Michelle, the Director of the company, purchased of 200 shares for $74.72 on Nov 15. It resulted in a $14,944 investment by the insider. Brennan Michelle added 200 shares at an average price of $76.30 on Nov 14. The insider now owns 3,124 shares following the transaction. On Nov 10, Director Brennan Michelle bought 150 shares at $79.74 apiece. The transaction was valued at $11,961.

Valuation Metrics

The latest dividend of $0.4957 per share was paid out, remained unchanged from last year’s $0.4957.

Financial Health

In the three months ended December 30, Cardinal Health Inc.’s quick ratio stood at 0.50, while its current ratio was 1.00, showing that the company is not able to pay off its debt. On the profitability front, the trailing twelve-month gross margin is 3.40% percent. In the year ended December 30, operating margins totaled 0.00%. Based on annual data, CAH earned $6.54 billion in gross profit and brought in $181.36 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was -16.70%. Return on equity (ROE) for the past 12 months was 94.30%.

In Cardinal Health Inc.’s quarter-end financial report for December 30, it reported total debt of $4.68 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. CAH’s revenue rose 11.68% to $49.6 billion during the quarter, while net income inched up to $51.47 billion. While analysts expected Cardinal Health Inc. to report $1.14 quarterly earnings, the actual figure was $1.32 per share, beating the consensus estimate by 15.80%. During the quarter, the company generated $51.0 million in EBITDA. The liabilities of Cardinal Health Inc. were 46.69 billion at the end of its most recent quarter ended December 30, and its total debt was $5.26 billion. The value of shareholders’ equity is $257.64 million.

Technical Picture

This quick technical analysis looks at Cardinal Health Inc.’s (CAH) price momentum. With a historical volatility rate of 15.48%, the RSI 9-day stood at 24.51% on 17 March.

With respect to its five-day moving average, the current Cardinal Health Inc. price is down by -2.21% percent or -$1.57. At present, CAH shares trade -11.47% below its 20-day simple moving average and -4.67% percent below its 100-day simple moving average. However, the stock is currently trading approximately -9.58% below its SMA50 and +23.62% above its SMA200.

Stochastic coefficient K was 12.03% and Stochastic coefficient D was 11.38%, while ATR was 1.52. Given the Stochastic reading of 9.54% for the 14-day period, the RSI (14) reading has been calculated as 28.39%. As of today, the MACD Oscillator reading stands at -1.00, while the 14-day reading stands at -2.53.

Analyst Ratings

Robert W. Baird upgraded its rating on Cardinal Health Inc. (NYSE: CAH) to an Outperform in a note to investors on February 03, 2023. The analysts firm previously had a Neutral rating on the stock.

With a median target price of $87.50, the current consensus forecast for the stock is $76.00 – $94.00. Based on these forecasts, analysts predict Cardinal Health Inc. (CAH) will achieve an average price target of $86.21.


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