Cardinal Health Inc. (NYSE:CAH) Chief Financial Officer Aaron E. Alt has sold a total of 2,323 company common shares, realizing over $250,000 from the sale. The transactions, which took place on August 19, 2024, were executed at a weighted average price of $108.91, with individual sale prices ranging from $108.82 to $108.99.
The sale came after a series of transactions involving Alt's holdings in the company. On August 15, he received 14,271 shares in the form of restricted share units (RSUs) that are set to vest over the next three years. The RSUs, which were granted at no cost to Alt, will become fully available to him in equal annual installments starting from August 15, 2025.
Two days later, on August 16, Alt disposed of 2,481 shares at a price of $107.91 per share to cover tax withholding obligations related to the vesting of 5,531 RSUs. This transaction amounted to a total value of $267,724.
Following these transactions, Alt's direct ownership in Cardinal Health stands at 36,867 common shares. The company, known for its role in the wholesale distribution of pharmaceuticals and medical products, has its headquarters in Dublin, Ohio.
Investors often monitor the buying and selling activities of company insiders like CFOs, as these can provide insights into the executives' perspectives on the firm's value and prospects. The recent transactions by Cardinal Health's CFO will likely be of interest to current and potential shareholders alike, as they evaluate their investment in the company.
In other recent news, Cardinal Health reported a 29% increase in earnings per share (EPS) for its fourth quarter and fiscal year 2024, with a 12% rise in fourth-quarter revenue to $59.9 billion. The company revised its fiscal year 2025 guidance upwards, projecting an EPS between $7.55 and $7.70. Deutsche Bank (ETR:DBKGn), TD Cowen, and Mizuho have all raised their price targets for Cardinal Health, reflecting the company's strong performance and promising outlook. Despite the expiration of the OptumRx contract impacting the Pharmaceutical and Specialty Solutions segment, new contracts and a focus on biosimilars and therapy solutions are expected to drive future growth. In addition, the company 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 FY2025. Cardinal Health is also investing in its Nuclear and Precision Health Solutions business, atHome solutions, and OptiFreight to support long-term growth. These are recent developments that highlight the company's strategic progress and resilience in key business segments.
InvestingPro Insights
Cardinal Health Inc. (NYSE:CAH) has been capturing investor attention with a mix of financial discipline and market performance. Amid the recent insider trading activity, here are some insights based on data and tips from InvestingPro that provide a broader context to the company's financial health and market position.
InvestingPro Tips highlight that Cardinal Health has been proactive in returning value to shareholders, with management aggressively buying back shares. This aligns with the company's commitment to shareholder returns, as evidenced by its impressive track record of raising its dividend for over three decades, now at 36 consecutive years. Additionally, there's an expectation of net income growth this year, which could signal financial robustness amid challenging market conditions. Interested readers can find a wealth of further analysis, with 19 additional InvestingPro Tips available at https://www.investing.com/pro/CAH.
Turning to InvestingPro Data, Cardinal Health's market capitalization stands at a robust $26.78 billion. Its price-to-earnings (P/E) ratio is currently 31.49, which may seem high, but when adjusted for the last twelve months as of Q4 2024, it presents a more attractive figure of 16.77. This suggests a more favorable valuation when considering near-term earnings growth. Moreover, the company's revenue has shown a healthy growth of 10.66% over the last twelve months as of Q4 2024, indicating a strong business performance in a competitive healthcare market.
These financial metrics, combined with the strategic moves by company insiders, offer investors a comprehensive view of Cardinal Health's market stance and future potential. As the company continues to navigate the dynamic healthcare sector, these insights could be invaluable for stakeholders making informed investment decisions.
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