Mirae Asset Global Investments Reduces Stake in Cardinal Health Amid Analyst Optimism

Mirae Asset Global Investments Co. Ltd. has reduced its holdings in Cardinal Health, Inc. (NYSE:CAH) by 1.3% during the first quarter, according to a recent filing with the Securities and Exchange Commission. The institutional investor now holds 32,113 shares of the healthcare services company, having sold 407 shares during this period. As of the latest filing, Mirae Asset’s stake in Cardinal Health was valued at $4,381,000.

This adjustment in holdings comes as other large investors also recalibrate their positions in the company. Notably, Cyrus J. Lawrence LLC acquired a new position in the fourth quarter, valued at approximately $26,000, while Tompkins Financial Corp significantly increased its stake by 106.7% in the first quarter, now owning 248 shares worth $34,000. These moves reflect a broader trend of strategic portfolio adjustments among institutional investors.

Analyst Ratings and Market Performance

Analysts have shown a positive outlook on Cardinal Health’s stock, with several raising their price targets. Robert W. Baird increased its target price from $156.00 to $170.00, maintaining an “outperform” rating. Similarly, Morgan Stanley set a target price of $181.00, also rating the stock as “overweight.” Wells Fargo & Company upgraded its rating from “equal weight” to “overweight,” raising the target price from $136.00 to $179.00.

Evercore ISI reiterated an “outperform” rating, adjusting its target price from $175.00 to $180.00. Bank of America also raised its target price from $165.00 to $170.00, supporting a “buy” rating. Overall, Cardinal Health has received a consensus rating of “Moderate Buy,” with an average target price of $157.43, according to MarketBeat data.

“Three analysts have rated the stock with a hold rating, eleven have assigned a buy rating, and one has given a strong buy rating to the company’s stock.”

Financial Performance and Dividend Increase

Cardinal Health’s stock opened at $164.09 on Wednesday, boasting a market capitalization of $39.17 billion. The company has a price-to-earnings (P/E) ratio of 25.60 and a beta of 0.68, indicating moderate volatility. The stock’s 52-week range is between $93.17 and $168.44.

The company reported quarterly earnings on May 1st, with earnings per share (EPS) of $2.35, surpassing the consensus estimate of $2.15. Revenue for the quarter stood at $54.88 billion, slightly below the expected $55.33 billion. Despite a net margin of 0.70% and a negative return on equity of 68.84%, Cardinal Health’s revenue remained stable compared to the same quarter last year.

In a move that signals confidence in its financial health, Cardinal Health announced an increase in its quarterly dividend to $0.5107 per share, up from the previous $0.51. This dividend, yielding 1.24%, will be paid on July 15th to shareholders of record as of July 1st.

Company Profile and Strategic Outlook

Cardinal Health, Inc. operates as a healthcare services and products company across the United States, Canada, Europe, Asia, and internationally. It provides customized solutions for a variety of healthcare settings, including hospitals, pharmacies, and clinical laboratories.

The company’s strategic focus on expanding its international footprint and enhancing service offerings positions it well for future growth. As the healthcare industry continues to evolve, Cardinal Health’s adaptability and commitment to innovation remain key to its competitive advantage.

Investors and analysts alike are keeping a close eye on Cardinal Health’s performance and strategic initiatives, as the company navigates the complexities of the global healthcare landscape. With a robust analyst backing and strategic financial maneuvers, Cardinal Health is poised to maintain its trajectory of growth and shareholder value.

“Institutional investors own 87.17% of the company’s stock, reflecting strong market confidence in Cardinal Health’s long-term prospects.”

As the company continues to report its financial results and adjust its strategic priorities, stakeholders will be watching closely for indications of sustained growth and profitability.

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