McKesson (NYSE:MCK) Shares Down 5.6% After Earnings Miss

Shares of McKesson Co. (NYSE:MCK) traded down 5.6% during trading on Thursday following a dissappointing earnings announcement. The company traded as low as $575.71 and last traded at $572.98. 91,597 shares were traded during mid-day trading, a decline of 87% from the average session volume of 689,735 shares. The stock had previously closed at $606.90.

The company reported $8.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $8.60 by ($0.57). McKesson had a net margin of 0.77% and a negative return on equity of 207.50%.

McKesson Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, April 1st. Stockholders of record on Monday, March 3rd will be issued a $0.71 dividend. This represents a $2.84 annualized dividend and a dividend yield of 0.47%. The ex-dividend date is Monday, March 3rd. McKesson’s payout ratio is 14.71%.

Analyst Ratings Changes

A number of equities research analysts recently commented on the stock. Citigroup reduced their price objective on shares of McKesson from $713.00 to $677.00 and set a “buy” rating for the company in a research report on Friday, January 10th. Robert W. Baird raised McKesson from a “neutral” rating to an “outperform” rating and raised their price target for the company from $531.00 to $688.00 in a report on Thursday, November 7th. StockNews.com raised McKesson from a “buy” rating to a “strong-buy” rating in a report on Thursday. Mizuho began coverage on McKesson in a report on Wednesday, December 4th. They issued a “neutral” rating and a $630.00 target price for the company. Finally, Bank of America lowered their price target on shares of McKesson from $680.00 to $650.00 and set a “buy” rating on the stock in a research note on Monday, January 6th. Two equities research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and two have given a strong buy rating to the company’s stock. According to MarketBeat.com, McKesson currently has an average rating of “Buy” and a consensus price target of $645.79.

Insider Transactions at McKesson

In related news, EVP Leann B. Smith sold 579 shares of McKesson stock in a transaction dated Thursday, January 2nd. The stock was sold at an average price of $572.79, for a total transaction of $331,645.41. Following the completion of the sale, the executive vice president now owns 864 shares in the company, valued at approximately $494,890.56. This trade represents a 40.12 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Corporate insiders own 0.11% of the company’s stock.

Institutional Investors Weigh In On McKesson

Several hedge funds have recently modified their holdings of MCK. Czech National Bank boosted its position in McKesson by 6.6% during the third quarter. Czech National Bank now owns 26,416 shares of the company’s stock worth $13,061,000 after acquiring an additional 1,645 shares during the last quarter. Brookstone Capital Management boosted its holdings in shares of McKesson by 15.2% during the third quarter. Brookstone Capital Management now owns 7,336 shares of the company’s stock worth $3,627,000 after purchasing an additional 968 shares during the last quarter. Strategic Wealth Partners Ltd. grew its position in shares of McKesson by 14.2% in the third quarter. Strategic Wealth Partners Ltd. now owns 660 shares of the company’s stock valued at $326,000 after purchasing an additional 82 shares during the period. Sanibel Captiva Trust Company Inc. increased its stake in McKesson by 2.9% in the third quarter. Sanibel Captiva Trust Company Inc. now owns 38,161 shares of the company’s stock valued at $18,868,000 after purchasing an additional 1,083 shares during the last quarter. Finally, Steigerwald Gordon & Koch Inc. lifted its position in McKesson by 6.5% during the third quarter. Steigerwald Gordon & Koch Inc. now owns 36,008 shares of the company’s stock worth $17,803,000 after buying an additional 2,204 shares during the period. 85.07% of the stock is owned by institutional investors and hedge funds.

McKesson Trading Down 1.3 %

The stock has a market capitalization of $76.02 billion, a price-to-earnings ratio of 31.01, a price-to-earnings-growth ratio of 1.29 and a beta of 0.52. The business has a 50 day simple moving average of $589.61 and a 200-day simple moving average of $562.56.

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.