Strategic Updates Send Pharma Stock Higher

Cardinal Health's directors approved a $3.5 billion share buyback program

Laura McCandless

Deputy Editor

Jun 8, 2023 at 11:09 AM

Cardinal Health Inc (NYSE:CAH) is well into its Investor Day, which started at 9 a.m. ET. The company's board of directors approved a $3.5 billion stock buyback program, expiring in December 2027, and narrowed its 2023 profit guidance, in addition to announcing other strategic moves.

At last glance, CAH was up 2.2% to trade at $85.10, bringing it closer to its May 17, seven-year high of $87.02, with support form the 40-day moving average. Since the start of 2023, the security is up 11%.

Cardinal Health stock's typically quiet options pits are showing bearish activity amid the event. So far, 2,347 puts have been exchanged, which is six times the amount usually seen at this point. The September 82.50 put is the most popular, with new positions being bought to open there.

Of the 11 analysts in coverage, eight carry a "hold" rating on CAH, while three say "buy" or better. The 12-month consensus price target of $87.65 is just a 3% premium from current levels.

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