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Cardinal Health Inc (NYSE:CAH) Chief Legal and Compliance Officer Jessica L. Mayer sold a total of 17,896 shares of company stock, netting over $1.9 million, as disclosed in a recent SEC filing. The sales occurred on August 15, with the shares fetching an average price of $106.48.
The transactions were part of Mayer's planned divestitures and represent a portion of her holdings in the company. Following the sale, Mayer still retains 94,529 shares of Cardinal Health stock, indicating a continued vested interest in the company's performance.
On the same day, Mayer also acquired shares through the vesting of stock options. The options, which had exercise prices ranging from $66.43 to $83.91, resulted in Mayer gaining an additional 8,673 shares, valued at approximately $631,017.
Additionally, Mayer was awarded 11,491 restricted stock units (RSUs) that will vest over time, contributing to her long-term stake in the company. These RSUs have a grant price of $0.0 and will vest in three equal annual installments beginning on August 15, 2025.
The recent filing also reveals that Mayer had shares withheld to satisfy tax obligations associated with the vesting of RSUs and performance share units. On August 15, a total of 18,807 shares worth approximately $2,000,312 were withheld at a price of $106.36 per share. Another withholding occurred on August 16, with 1,985 shares valued at around $214,201 being withheld at a price of $107.91 per share.
Investors often look at insider buying and selling as a signal of management's view on the company's future prospects. In this case, Mayer's transactions suggest a balanced approach to her investment in Cardinal Health, taking profits while maintaining a significant equity position in the organization.
Cardinal Health, headquartered in Dublin, Ohio, is a global, integrated healthcare services and products company, providing customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, and physician offices worldwide.
In other recent news, Cardinal Health reported a significant increase in earnings, surpassing expectations. The company's fourth-quarter earnings showed a 29% rise in earnings per share (EPS), with revenue for the same period growing by 12% to $59.9 billion. The fiscal year 2024 revenue also experienced an 11% increase, reaching $227 billion. In light of these developments, Cardinal Health revised its EPS guidance for fiscal year 2025 to between $7.55 and $7.70.
Analysts from Deutsche Bank, TD Cowen, and Mizuho have responded by raising their price targets for Cardinal Health to $119, $116, and $110 respectively. Despite the increased targets, all three firms maintained a hold or neutral rating on the stock.
These upward revisions follow strategic moves by Cardinal Health, including new contracts and expansions, which are expected to drive growth in the coming fiscal years. The company also plans to generate at least $500 million in cash over the next two years and has increased its share repurchase expectation to $750 million for fiscal year 2025. Despite facing some challenges, Cardinal Health remains confident about its strategic progress and ability to capitalize on growth opportunities.
InvestingPro Insights
Cardinal Health Inc's (NYSE:CAH) recent insider transactions have sparked interest among investors, looking to gauge the company's health and future prospects. To further understand the context of these transactions, InvestingPro provides valuable metrics and tips that can offer a deeper insight into the company's financial position and market performance.
InvestingPro Data reveals a robust market capitalization of $26.78 billion for Cardinal Health, reflecting its significant presence in the healthcare industry. The company's P/E ratio stands at 31.49, which may suggest a higher valuation compared to the market average. However, looking at the adjusted P/E ratio for the last twelve months as of Q4 2024, which is 16.77, it appears more in line with near-term earnings growth. Additionally, the company has demonstrated a solid revenue growth of 10.66% over the same period, emphasizing its expanding operations.
In terms of InvestingPro Tips, it's noteworthy that management has been actively buying back shares, which could be interpreted as a sign of confidence in the company's value. Moreover, Cardinal Health has an impressive track record of raising its dividend for 36 consecutive years, showcasing its commitment to returning value to shareholders. For those interested in the company's dividend reliability and management's perspective on stock value, these two InvestingPro Tips are particularly relevant.
For investors seeking more comprehensive analysis and additional insights, there are 19 more InvestingPro Tips available, which can be accessed for Cardinal Health at https://www.investing.com/pro/CAH. These tips can provide further clarity on the company's financial health and help investors make more informed decisions.
As Cardinal Health navigates the complexities of the healthcare industry, these InvestingPro Insights can help investors keep a pulse on the company's financial stability and market sentiment.
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