Victory Capital Management Inc., a well-known investment management firm, recently revealed that it has sold 136,112 shares of Cardinal Health, a healthcare services and products company. This represents a 20.6% reduction in the fund’s position in the company during Q4 of the current fiscal year. The state declared its most recent disclosure with the Securities and Exchange Commission (SEC) which revealed that following the sale of these shares, Victory Capital Management Inc. now holds approximately 0.20% of Cardinal Health worth $40,475,000 as of its most recent filing.
This move has received wide attention from industry experts and financial analysts who have been keeping an eye on Cardinal Health due to its impressive performance in the past few months. In May this year, the healthcare company announced earnings per share of $1.74 for Q1 2021– nearly $0.26 more than analysts’ consensus estimate! However, Cardinal Health’s net margin was just 0·23 per cent while having negative return equity equaling an unsettling 81·55%. Despite its downturns, business revenue soared to $50·5bn leaving other market participants behind.
Cardinal Health offers healthcare services and various industrial medical supplies at different hospital facilities around the world aiming to impove affordability and efficiency within healthcare practices. As they work towards quality patient care many public officials regard their work as incredibly crucial especially through essential times such as COVID-19 pandemic.
The company stands today as one of the major pharmaceutical chains across America offering hassle-free services on medical related commodities around pharmaceutical domains besides stipulating customized solutions for hospitals making them highly sought after amongst patients alike.
Despite mixed opinions on Cardinal health’s recent EPS downfall through restructuring strategies and fighting back against competition seen over time we predict this publicly traded company is set to boom into a brighter future bringing innovative global solutions .
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Hedge funds show increased interest in Cardinal Health, Inc.
Cardinal Health, Inc. has been making waves in the financial world recently with several hedge funds changing their position in the company. SJS Investment Consulting saw an increase of 888.6% in its holdings, now owning 346 shares worth $27,000 after acquiring an additional 311 shares during the last quarter. BOK Financial Private Wealth added a new position with shares worth approximately $28,000 during the third quarter and McElhenny Sheffield Capital Management also purchased new shares valued at roughly $36,000.
Capital Advisors Ltd. LLC increased its stake by 29.5% to have now acquired 589 shares worth $39,000 after purchasing a further 134 shares in the last quarter. Boyd Watterson Asset Management LLC OH also saw potential in Cardinal Health and bought newly issued stakes valuing approximately $40,000 during Q4 of last year.
The fact that institutional investors owned over 88% of the stocks was not lost on market observers as Cardinal Health opened for trading at $85.56 on Friday morning. The company’s business model involves providing customized solutions to health providers ranging from hospitals to clinical laboratories and physician offices by offering medical products and pharmaceuticals together with cost-effective supply chain solutions that enhance efficiency.
With a market capitalization of over twenty-one billion dollars and a price-to-earnings ratio of around forty-nine times, Cardinal Health has been attracting investors who are drawn to companies with significant growth potential. Analysts have praised Cardinal Health’s strategy resulting in Deutsche Bank Aktiengesellschaft increasing their target price for the stock from$88 to $90 while Morgan Stanley gave it an “overweight” rating and raised its target price to$90.
Despite criticism by Citigroup when they initially assumed coverage on the stock back in March giving it a “neutral” rating with a target price of $77.00 per share, other analysts have given it either “hold”, “buy” or a strong “buy” rating. This has resulted in Bloomberg.com’s consensus rating for Cardinal Health remaining at “hold”, with an average price target of $82.23 per share.
In conclusion, despite the changes made recently by several hedge funds to their position in the company, Cardinal Health remains an attractive prospect for institutional investors and individual traders alike due to its unique business model and viable growth potentials.
