Changes in these assumptions may have a material impact on the backtested returns presented. General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Backtested performance is not an indicator of future actual results. Nonetheless, should its director nominations be accepted at the annual meeting, Elliott may put forth its motives through them.ĭisclaimer: The TipRanks Smart Score performance is based on backtested results. Elliott hasn’t clearly mentioned what strategic steps it expects Cardinal Health to undertake. Ending ThoughtsĮlliott Management’s investment in Cardinal Health means that the activist investor surely sees some value potential in the stock. On the other hand, TipRanks’ Stock Investors tool shows that investor sentiment is currently Positive on Cardinal Health, with 1.0% of portfolios tracked by TipRanks increasing their exposure to CAH stock over the past 30 days. The average Cardinal Health stock forecast of $65.44 implies 6.5% downside potential to current levels. On TipRanks, CAH stock has a Hold consensus rating based on two Buys, six Holds, and one Sell. Notably, the company announced a regular quarterly common stock dividend of $0.49 per share, representing a current dividend yield of 2.84%. This slump was due to the divestiture of the Cordis business as well as lower products and distribution volumes. On the other hand, its Medical segment reported an 11% year-over-year decline in revenue to $3.8 billion. Branded pharmaceutical sales from existing and new customers added the much-needed pace to the segment’s revenue. However, adjusted earnings of $1.05 per share rose 36% year-over-year but missed analyst estimates by $0.13 per share.Ĭardinal’s fourth quarter revenue was boosted by a 13% year-over-year jump in its Pharmaceutical segment revenue of $43.3 billion. Revenue of $47.10 billion rose 10.6% year-over-year and came in $2.28 billion higher than the consensus. On August 11, Cardinal reported mixed fourth-quarter Fiscal 2022 results, beating revenue but missing earnings estimates. Cardinal has been dodging the effects of inflation and supply chain constraints on its medical supplies business. Effective September 1, Kaufmann will be replaced by Cardinal’s current CFO, Jason Hollar, who will also join the Board of Directors. Last week, Cardinal announced the abrupt departure of its CEO, Mike Kaufmann. Cardinal’s CEO Steps Down After Posting Mixed Q4 Results CAH Stock has gained nearly 37% so far this year.

Although Elliott’s intention to invest in Cardinal is unknown, the activist hedge fund has also increased stakes in Aerojet Rocketdyne ( AJRD), Pinterest ( PINS), PayPal Holdings ( PYPL), and Endeavor Group Holdings ( EDR).Ĭardinal Health is one of the largest American medical products distributors.

The last date for nominating directors ended on August 7. Paul Singer-led Elliott nominated five candidates for the Cardinal’s Board about two weeks back.

Shares ended the day almost flat at $69.97 on August 15. ( NYSE: CAH) hit a new all-year high of $71.45 yesterday after activist hedge fund Elliott Management disclosed a large stake in the health care services company.

Cardinal chains 97