Cardinal Health, Inc. (CAH) Bundle
Who Invests in Cardinal Health, Inc. (CAH) and Why?
Who Invests in Cardinal Health, Inc. (CAH) and Why?
Understanding the investor profile for Cardinal Health, Inc. (CAH) involves examining the different types of investors, their motivations, and the strategies they employ.
Key Investor Types
- Retail Investors: Individual investors who purchase shares for personal accounts. As of 2024, retail ownership accounted for approximately 25% of total shares outstanding.
- Institutional Investors: Organizations such as pension funds, mutual funds, and insurance companies. They hold about 70% of the total shares, with notable institutional holders including Vanguard Group and BlackRock.
- Hedge Funds: Investment funds that employ various strategies to earn active returns. Hedge funds represent around 5% of total ownership, with significant investments in CAH for short-term trading strategies.
Investment Motivations
Investors are drawn to CAH for several reasons:
- Growth Prospects: The company’s focus on acquisitions, such as the $1.1 billion acquisition of Integrated Oncology Network, enhances its growth potential.
- Dividends: Cardinal Health has a robust dividend policy, with a quarterly dividend of $0.5056 per share, translating to an annualized yield of approximately 2.02%.
- Market Position: As a major player in the healthcare distribution sector, CAH benefits from strong market demand, contributing to its stable revenue generation.
Investment Strategies
Investors utilize various strategies when investing in CAH:
- Long-Term Holding: Many institutional investors adopt a long-term perspective, holding shares to benefit from growth and dividends.
- Short-Term Trading: Hedge funds often engage in short-term trading, capitalizing on market volatility and company performance metrics.
- Value Investing: Retail investors may focus on buy-and-hold strategies, seeking to purchase shares when the stock is undervalued, especially after recent dips in stock price.
Recent Financial Performance
Metric | Q1 2025 | Q1 2024 | Change (%) |
---|---|---|---|
Revenue | $52,277 million | $54,650 million | -4% |
Operating Earnings | $568 million | ($32 million) | N.M. |
Non-GAAP Diluted EPS | $1.88 | $1.72 | 9% |
Cash and Equivalents | $2,867 million | $5,133 million | -44% |
As of September 30, 2024, CAH reported a net earnings of $416 million compared to a net loss of $12 million in the same quarter the previous year.
Institutional Ownership and Major Shareholders of Cardinal Health, Inc. (CAH)
Institutional Ownership and Major Shareholders
As of September 30, 2024, the institutional ownership of the company is characterized by significant investments from major institutional shareholders. Below is a detailed table of the top institutional investors and their shareholdings:
Institution | Shares Held (millions) | Percentage of Total Shares | Market Value (in billions) |
---|---|---|---|
Vanguard Group Inc. | 45.5 | 13.9% | $4.3 |
BlackRock Inc. | 40.2 | 12.3% | $3.8 |
State Street Corporation | 30.1 | 9.2% | $2.9 |
Fidelity Investments | 25.4 | 7.8% | $2.4 |
T. Rowe Price Associates, Inc. | 20.3 | 6.2% | $1.9 |
Invesco Ltd. | 15.0 | 4.6% | $1.4 |
Recent changes in ownership indicate that institutional investors have made adjustments to their stakes in the company. Notably, Vanguard Group increased its holdings by 2.5% in the last quarter, while BlackRock reduced its stake by 1.2%. State Street maintained its position, reflecting a stable outlook on the company's prospects.
The influence of these institutional investors is significant in shaping the company’s stock price and strategic direction. Their large shareholdings often lead to increased trading volume, which can impact stock price volatility. Additionally, these investors typically engage with management to influence corporate governance and strategic initiatives, which can drive operational changes and potential growth opportunities.
For instance, with Vanguard's recent acquisition of additional shares, it signals confidence in the company’s ongoing recovery from previous operational challenges and its strategic acquisitions, such as the planned $1.1 billion acquisition of Integrated Oncology Network, which is expected to enhance revenue streams and market positioning.
The total institutional ownership stands at approximately 75% of the total outstanding shares, underscoring the confidence these large investors have in the company’s long-term strategy and financial health.
Key Investors and Their Influence on Cardinal Health, Inc. (CAH)
Key Investors and Their Impact on Cardinal Health, Inc. (CAH)
As of 2024, Cardinal Health, Inc. has seen significant investment interest from various key investors, including institutional funds and activist investors. These stakeholders play a crucial role in shaping the company's strategic direction and influencing stock movements.
Notable Investors
- The Vanguard Group, Inc. - Holds approximately 8.5% of total shares outstanding.
- BlackRock, Inc. - Owns about 7.2% of total shares outstanding.
- State Street Corporation - Possesses around 4.9% of total shares outstanding.
- Wellington Management Company, LLP - Holds 3.1% of total shares outstanding.
- Barclays PLC - Engaged in activist investment, advocating for operational efficiency and strategic growth.
Investor Influence
Institutional investors like Vanguard and BlackRock exert significant influence over company decisions through their voting power in shareholder meetings. Their focus on long-term growth often leads to pressure on management to enhance operational efficiency and improve profitability metrics.
For example, the presence of activist investors, such as Barclays, has resulted in management restructuring discussions aimed at optimizing business segments and increasing shareholder value. This influence can lead to notable stock movements, especially during earnings announcements or strategic initiatives.
Recent Moves
In recent months, several key investors have made substantial moves regarding their stakes in Cardinal Health:
- In August 2024, the company announced a share repurchase program where it repurchased 2.7 million shares at an average price of $109.65, demonstrating confidence in its stock value.
- Vanguard increased its position by purchasing an additional 1.5 million shares in September 2024.
- BlackRock divested 500,000 shares in October 2024, adjusting its portfolio strategy.
Financial Impact of Key Investors
Investor actions have a direct impact on stock performance. The following table summarizes recent stock performance alongside notable investor activities:
Investor | Action | Date | Shares Affected | Average Price ($) | Impact on Stock Price (%) |
---|---|---|---|---|---|
The Vanguard Group | Increased Position | September 2024 | 1,500,000 | 105.00 | +2.5% |
BlackRock, Inc. | Divested Shares | October 2024 | 500,000 | 110.00 | -1.0% |
Cardinal Health, Inc. | Share Repurchase | August 2024 | 2,700,000 | 109.65 | +3.0% |
As of September 30, 2024, the stock price was approximately $111.72, reflecting recent investor activities and market conditions. The company's market capitalization stood at about $25 billion, underscoring its significance in the healthcare sector.
Market Impact and Investor Sentiment of Cardinal Health, Inc. (CAH)
Market Impact and Investor Sentiment
Investor Sentiment: As of 2024, major shareholders display a neutral sentiment towards the company. This sentiment is reflected in the stock's performance and the ongoing strategic initiatives aimed at stabilizing revenue post-contract expirations.
Recent Market Reactions: The stock has experienced fluctuations in response to significant ownership changes. For instance, in September 2024, the stock price saw a decline following the expiration of key contracts, which accounted for 17% of total revenue in fiscal 2024. The market reacted negatively to this news, which was compounded by a reported 4% decrease in revenue year-over-year, falling to $52.3 billion for the quarter ended September 30, 2024.
Analyst Perspectives: Analysts remain cautiously optimistic, highlighting the potential for recovery through new customer onboarding and operational efficiencies. They note that non-GAAP operating earnings increased by 12% to $625 million in the recent quarter, suggesting that the company's core operations are still robust despite external pressures.
Metric | Value |
---|---|
Current Cash and Equivalents | $2.9 billion |
Net Cash Used in Operating Activities (Q3 2024) | $1.6 billion |
Annual Dividend Per Share | $2.02 |
Total Long-term Obligations (as of September 30, 2024) | $5.2 billion |
Shares Repurchased (Q3 2024) | 2.7 million shares |
GAAP Diluted EPS (Q3 2024) | $1.70 |
Non-GAAP Diluted EPS (Q3 2024) | $1.88 |
Effective Tax Rate (Q3 2024) | 23.0% |
Amidst these dynamics, the company’s ongoing legal settlements related to opioid litigation, with an accrued liability of $5.0 billion as of September 30, 2024, continue to weigh on investor sentiment.
Cardinal Health, Inc. (CAH) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Article updated on 8 Nov 2024
Resources:
- Cardinal Health, Inc. (CAH) Financial Statements – Access the full quarterly financial statements for Q1 2025 to get an in-depth view of Cardinal Health, Inc. (CAH)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cardinal Health, Inc. (CAH)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.