Cardinal Health (NYSE:CAH) declared that its board has initiated a stock repurchase program, which authorizes the company to buyback $1.00 billion in outstanding shares on Thursday, November 8th. This buyback authorization authorizes the company to purchase up to 6.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s board of directors believes its shares are undervalued.

NYSE CAH opened at $55.31 on Friday. Cardinal Health has a fifty-two week low of $48.14 and a fifty-two week high of $75.75. The company has a debt-to-equity ratio of 1.32, a current ratio of 1.07 and a quick ratio of 0.53. The company has a market capitalization of $16.09 billion, a price-to-earnings ratio of 11.06, a price-to-earnings-growth ratio of 1.70 and a beta of 0.94.

Cardinal Health (NYSE:CAH) last released its quarterly earnings data on Thursday, November 8th. The company reported $1.29 earnings per share for the quarter, topping the consensus estimate of $1.08 by $0.21. Cardinal Health had a return on equity of 22.59% and a net margin of 0.19%. The business had revenue of $35.21 billion during the quarter, compared to analysts’ expectations of $33.66 billion. During the same quarter last year, the business posted $1.09 EPS. The business’s revenue was up 7.9% on a year-over-year basis. As a group, research analysts expect that Cardinal Health will post 5.02 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, January 15th. Shareholders of record on Wednesday, January 2nd will be issued a $0.4763 dividend. This represents a $1.91 annualized dividend and a yield of 3.44%. The ex-dividend date is Monday, December 31st. Cardinal Health’s dividend payout ratio (DPR) is currently 38.20%.

Several equities analysts recently issued reports on CAH shares. Argus reduced their price target on Cardinal Health from $85.00 to $75.00 and set a “buy” rating on the stock in a research report on Monday, July 16th. Robert W. Baird restated a “hold” rating and set a $51.00 price target on shares of Cardinal Health in a research report on Friday, July 20th. Royal Bank of Canada restated a “hold” rating and set a $56.00 price target on shares of Cardinal Health in a research report on Tuesday, August 7th. Mizuho restated a “hold” rating and set a $53.00 price target on shares of Cardinal Health in a research report on Sunday, August 12th. Finally, Zacks Investment Research lowered Cardinal Health from a “hold” rating to a “sell” rating in a research report on Tuesday, October 9th. Four investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and two have assigned a buy rating to the company’s stock. Cardinal Health has a consensus rating of “Hold” and a consensus price target of $61.08.

In other Cardinal Health news, CEO Jon L. Giacomin sold 2,890 shares of the stock in a transaction that occurred on Monday, August 20th. The stock was sold at an average price of $51.95, for a total value of $150,135.50. Following the completion of the sale, the chief executive officer now owns 72,652 shares in the company, valued at approximately $3,774,271.40. The transaction was disclosed in a document filed with the SEC, which is available at this link. Company insiders own 1.10% of the company’s stock.

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Cardinal Health Company Profile

Cardinal Health, Inc operates as an integrated healthcare services and products company in the United States and internationally. It provides medical products and pharmaceuticals, and solutions that enhance supply chain efficiency for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, and physician offices.

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