Cardinal Health Inc. recently witnessed a significant stock transaction by one of its senior leaders. Michelle D. Greene, who serves as the company’s Chief Information Officer, offloaded 4,000 shares of Cardinal Health stock on August 19, 2024. These shares were sold at an average price of $108.85 each, amounting to a total of more than $435,000.
This sale was part of a broader set of transactions involving both the acquisition and sale of shares by Greene. Before the sale, she had shares withheld to cover tax obligations related to the vesting of restricted and performance share units.
On August 15, shares worth around $250,477 were withheld at a rate of $106.36 per share, followed by an additional withholding of shares valued at $161,109 on August 16, at a price of $107.91 per share.
Furthermore, Greene received a grant of restricted stock units (RSUs) that are set to vest in three equal annual portions starting from August 15, 2025. This grant, made on August 15, included 4,819 RSUs, which were awarded to Greene at a transaction price of $0.0, indicating that these shares were part of her compensation package and were not acquired through a market purchase.
As a result of these transactions, Greene now holds 19,242 common shares in the company. The recent sales were executed through multiple transactions, with prices ranging from $108.67 to $108.97.
Greene has agreed to provide detailed information regarding the number of shares sold at each specific price upon request.
Investors frequently keep an eye on insider transactions like these to gauge executives’ views on the company’s stock value and its future prospects. Nonetheless, these transactions can be driven by various factors and don’t always reflect a direct link to the company’s operational performance or potential difficulties.
Cardinal Health, based in Dublin, Ohio, is a global leader in healthcare services and products, recognized for its extensive distribution network of pharmaceuticals and medical supplies.
Cardinal Health recently reported strong financial results, with a 29% increase in earnings per share (EPS) for its fourth quarter and fiscal year 2024. Fourth-quarter revenue rose by 12% to $59.9 billion, while fiscal year 2024 revenue grew by 11% to $227 billion, largely driven by the pharmaceutical and specialty solutions segment.
The company has revised its fiscal year 2025 EPS guidance upward, projecting a range of $7.55 to $7.70. This positive performance has led Deutsche Bank, TD Cowen, and Mizuho to raise their price targets for Cardinal Health, signaling confidence in the company’s growth outlook.
However, the pharmaceutical and specialty solutions segment is projected to decrease by 4-6% following the expiration of the OptumRx contract.
In contrast, the Global Medical Products Distribution segment ended the year with a $205 million profit, showing a $240 million improvement year over year, and is on track to reach $300 million by fiscal year 2026.
Cardinal Health is also investing in its Nuclear and Precision Health Solutions business and plans to grow its atHome solutions and OptiFreight services.
Despite challenges like insulin pricing changes and slow biosimilar adoption, the company remains confident in its strategic progress, with initiatives like the Averon joint venture with CVS Health expected to drive future growth.
