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

McKesson Co. (NYSE:MCK – Get Rating) has received an average rating of “Moderate Buy” from the eleven brokerages that are currently covering the stock, Marketbeat.com reports. Two equities research analysts have rated the stock with a hold rating, five have given a buy rating and one has assigned a strong buy rating to the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $416.30.

→ “Prepare for Five Years of Famine” (From Legacy Research)

A number of equities analysts have recently commented on MCK shares. Robert W. Baird raised their target price on shares of McKesson from $445.00 to $450.00 and gave the stock an “outperform” rating in a research report on Thursday, February 2nd. UBS Group reduced their target price on shares of McKesson from $450.00 to $440.00 and set a “buy” rating on the stock in a research report on Tuesday, January 31st. StockNews.com started coverage on shares of McKesson in a research report on Thursday. They set a “strong-buy” rating on the stock. Finally, Morgan Stanley increased their price objective on shares of McKesson from $420.00 to $426.00 and gave the company an “overweight” rating in a research note on Thursday, February 2nd.

Table of Contents

Insider Buying and Selling at McKesson

In other news, CEO Brian S. Tyler sold 7,416 shares of McKesson stock in a transaction on Thursday, February 2nd. The shares were sold at an average price of $380.00, for a total transaction of $2,818,080.00. Following the completion of the sale, the chief executive officer now directly owns 75,737 shares in the company, valued at $28,780,060. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In other news, CEO Brian S. Tyler sold 7,416 shares of McKesson stock in a transaction on Thursday, February 2nd. The shares were sold at an average price of $380.00, for a total transaction of $2,818,080.00. Following the completion of the sale, the chief executive officer now directly owns 75,737 shares in the company, valued at $28,780,060. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Nancy Avila sold 161 shares of McKesson stock in a transaction on Friday, February 3rd. The stock was sold at an average price of $370.02, for a total transaction of $59,573.22. Following the sale, the executive vice president now owns 4,631 shares of the company’s stock, valued at $1,713,562.62. The disclosure for this sale can be found here. 0.21% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the business. Covestor Ltd increased its holdings in McKesson by 72.3% in the first quarter. Covestor Ltd now owns 81 shares of the company’s stock valued at $25,000 after buying an additional 34 shares in the last quarter. Column Capital Advisors LLC increased its holdings in McKesson by 189.3% in the fourth quarter. Column Capital Advisors LLC now owns 81 shares of the company’s stock valued at $30,000 after buying an additional 53 shares in the last quarter. Live Oak Investment Partners purchased a new position in McKesson in the fourth quarter valued at $30,000. Dark Forest Capital Management LP purchased a new position in McKesson in the fourth quarter valued at $40,000. Finally, Almanack Investment Partners LLC. purchased a new position in McKesson in the third quarter valued at $41,000. Hedge funds and other institutional investors own 85.23% of the company’s stock.

McKesson Price Performance

McKesson stock opened at $339.35 on Friday. McKesson has a 1-year low of $292.40 and a 1-year high of $401.78. The firm has a market capitalization of $46.47 billion, a P/E ratio of 15.52, a price-to-earnings-growth ratio of 1.25 and a beta of 0.59. The company’s 50-day moving average is $362.87 and its 200 day moving average is $366.39.

McKesson (NYSE:MCK – Get Rating) last posted its quarterly earnings data on Wednesday, February 1st. The company reported $6.90 earnings per share for the quarter, topping analysts’ consensus estimates of $6.36 by $0.54. McKesson had a net margin of 1.15% and a negative return on equity of 216.12%. The company had revenue of $70.49 billion for the quarter, compared to analyst estimates of $70.98 billion. During the same period in the prior year, the company posted $6.15 EPS. The firm’s revenue for the quarter was up 2.7% on a year-over-year basis. Research analysts anticipate that McKesson will post 25.93 earnings per share for the current fiscal year.

McKesson Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, April 3rd. Shareholders of record on Wednesday, March 1st will be paid a $0.54 dividend. The ex-dividend date of this dividend is Tuesday, February 28th. This represents a $2.16 annualized dividend and a yield of 0.64%. McKesson’s dividend payout ratio (DPR) is 9.88%.

About McKesson

(Get Rating)

McKesson Corp. engages in the provision of supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology. It operates through the following segments: U.S. Pharmaceutical, International, Medical-Surgical Solutions, and Prescription Technology Solutions (RxTS).