McKesson Co. (NYSE:MCK) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of McKesson Co. (NYSE:MCK) have received a consensus rating of “Moderate Buy” from the sixteen brokerages that are currently covering the stock, MarketBeat Ratings reports. Two research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the company. The average 1 year price target among analysts that have covered the stock in the last year is $590.47.

Several research firms have recently issued reports on MCK. Argus upped their price objective on McKesson from $570.00 to $670.00 and gave the company a “buy” rating in a research note on Monday, June 24th. Wells Fargo & Company upped their price objective on McKesson from $502.00 to $551.00 and gave the company an “equal weight” rating in a research note on Thursday, May 9th. Morgan Stanley upped their price objective on McKesson from $522.00 to $548.00 and gave the company an “overweight” rating in a research note on Monday, April 15th. Bank of America upped their price objective on McKesson from $590.00 to $670.00 and gave the company a “buy” rating in a research note on Tuesday, June 25th. Finally, UBS Group upped their price objective on McKesson from $620.00 to $630.00 and gave the company a “buy” rating in a research note on Wednesday, May 8th.

Insiders Place Their Bets

In related news, EVP Leann B. Smith sold 600 shares of the stock in a transaction on Tuesday, June 11th. The stock was sold at an average price of $585.53, for a total value of $351,318.00. Following the transaction, the executive vice president now directly owns 2,022 shares in the company, valued at approximately $1,183,941.66. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. In related news, EVP Leann B. Smith sold 600 shares of the stock in a transaction on Tuesday, June 11th. The stock was sold at an average price of $585.53, for a total value of $351,318.00. Following the transaction, the executive vice president now directly owns 2,022 shares in the company, valued at approximately $1,183,941.66. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, EVP Thomas L. Rodgers sold 789 shares of the stock in a transaction on Tuesday, May 28th. The stock was sold at an average price of $557.40, for a total value of $439,788.60. Following the completion of the transaction, the executive vice president now owns 7,909 shares in the company, valued at $4,408,476.60. The disclosure for this sale can be found here. In the last three months, insiders have sold 25,814 shares of company stock worth $14,511,649. Corporate insiders own 0.11% of the company’s stock.

Institutional Investors Weigh In On McKesson

A number of institutional investors and hedge funds have recently bought and sold shares of MCK. Norges Bank purchased a new stake in McKesson in the 4th quarter valued at $1,024,140,000. Swedbank AB purchased a new stake in McKesson in the 1st quarter valued at $669,326,000. International Assets Investment Management LLC raised its position in McKesson by 1,044.5% in the 4th quarter. International Assets Investment Management LLC now owns 821,262 shares of the company’s stock valued at $380,228,000 after buying an additional 749,504 shares during the last quarter. TD Asset Management Inc raised its position in McKesson by 202.8% in the 4th quarter. TD Asset Management Inc now owns 602,138 shares of the company’s stock valued at $278,778,000 after buying an additional 403,312 shares during the last quarter. Finally, Bessemer Group Inc. increased its position in shares of McKesson by 3,621.7% during the 1st quarter. Bessemer Group Inc. now owns 349,395 shares of the company’s stock valued at $187,572,000 after purchasing an additional 340,007 shares during the last quarter. 85.07% of the stock is owned by hedge funds and other institutional investors.

McKesson Trading Down 0.3 %

Shares of NYSE MCK opened at $583.35 on Friday. The company has a market cap of $75.80 billion, a price-to-earnings ratio of 26.07, a PEG ratio of 1.37 and a beta of 0.45. McKesson has a 12 month low of $395.30 and a 12 month high of $612.17. The stock has a 50-day moving average price of $569.08 and a two-hundred day moving average price of $527.93.

McKesson (NYSE:MCK) last issued its earnings results on Tuesday, May 7th. The company reported $6.18 EPS for the quarter, missing the consensus estimate of $6.34 by ($0.16). The business had revenue of $76.36 billion for the quarter, compared to analyst estimates of $79.32 billion. McKesson had a negative return on equity of 245.88% and a net margin of 0.97%. The firm’s revenue was up 10.8% compared to the same quarter last year. During the same period in the previous year, the firm posted $7.19 EPS. On average, sell-side analysts predict that McKesson will post 31.54 earnings per share for the current year.

McKesson Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, July 1st. Shareholders of record on Monday, June 3rd were issued a dividend of $0.62 per share. This represents a $2.48 dividend on an annualized basis and a dividend yield of 0.43%. The ex-dividend date of this dividend was Monday, June 3rd. McKesson’s payout ratio is 11.08%.

About McKesson

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products.