Cardinal Health Shares Rally 2.64% on $380M Top-Volume Surge as Insiders Sell for Tax Obligations Earnings Outlook Brightens Amid Acquisition Risks

Cardinal Health (CAH) rose 2.64% on August 20, 2025, with a trading volume of $380 million, as insider selling linked to tax obligations from restricted stock vesting drew investor scrutiny. Executives, including Chief Human Resources Officer Ola Snow, sold shares in August, citing standard tax planning tied to performance-based equity awards. The company reported strong Q4 2025 earnings, raising 2026 guidance to $9.30–$9.50 per share, driven by growth in pharmaceuticals and at-home solutions.

Strategic risks remain, however. A $1 billion senior debt issuance and the conditional redemption clause in the Solaris Health acquisition could strain liquidity if the deal fails to close by August 12, 2026. The PEG ratio of 1.19 suggests slight overvaluation, while a 1.3% yield and conservative payout ratio of 31.86% appeal to income investors. Insiders’ transactions, though routine, coincide with heightened exposure to the Solaris acquisition’s outcome, raising questions about hedging strategies.

Backtest analysis of a strategy buying top-volume stocks and holding for one day from 2022 to 2025 showed a 0.98% average daily return and 31.52% total return over 365 days. This highlights the stock’s short-term momentum potential amid market volatility and timing risks.