Zacks Investment Research upgraded shares of McKesson Corporation (NYSE:MCK) from a hold rating to a buy rating in a report released on Wednesday, July 12th. Zacks Investment Research currently has $184.00 target price on the stock.
According to Zacks, “Over the past three months, McKesson has been trading above the broader Medical/Dental – Supplies industry. Looking forward, management expects to gain with the gradually stabilizing generic and branded markets. The company recently posted stable numbers for the fourth-quarter fiscal 2017 (ended Mar 31, 2017) wherein earnings beat the Zacks Consensus Estimate, courtesy of a strong performance in the Distribution Solutions division. To boost growth the company has acquired CoverMyMeds for approximately $1.1 billion in the recent past. Also, cost-savings efforts remain encouraging. Furthermore, an inexpensive valuation and rising estimate revision trend for the current year indicates a pocket of opportunity for the stock. On the flip side, stiff competition, currency headwind and reimbursement issues remain challenges.”
Several other equities analysts have also recently weighed in on the company. Leerink Swann increased their price target on McKesson Corporation to $170.00 and gave the company a market perform rating in a report on Thursday, June 29th. Vetr raised McKesson Corporation from a buy rating to a strong-buy rating and set a $187.51 price target on the stock in a report on Tuesday, June 27th. UBS AG reissued a neutral rating and set a $166.00 price target (up from $156.00) on shares of McKesson Corporation in a report on Monday, June 26th. Barclays PLC set a $187.00 price target on McKesson Corporation and gave the company a buy rating in a report on Sunday, June 4th. Finally, Mizuho increased their price target on McKesson Corporation from $147.00 to $168.00 and gave the company a neutral rating in a report on Tuesday, May 30th. Two analysts have rated the stock with a sell rating, nine have assigned a hold rating and nine have given a buy rating to the company. McKesson Corporation presently has a consensus rating of Hold and a consensus price target of $171.21.
Shares of McKesson Corporation (NYSE:MCK) traded down 0.71% during midday trading on Wednesday, reaching $149.99. The company’s stock had a trading volume of 1,623,794 shares. The stock has a market cap of $31.54 billion, a price-to-earnings ratio of 6.81 and a beta of 1.13. The stock has a 50-day moving average price of $162.85 and a 200-day moving average price of $151.95. McKesson Corporation has a 52-week low of $114.53 and a 52-week high of $197.08.
McKesson Corporation (NYSE:MCK) last released its quarterly earnings data on Thursday, July 27th. The company reported $2.46 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.81 by $0.35. The business had revenue of $51.05 billion during the quarter, compared to the consensus estimate of $51.22 billion. McKesson Corporation had a net margin of 2.42% and a return on equity of 25.76%. The business’s revenue was up 2.7% compared to the same quarter last year. During the same period last year, the company posted $3.50 earnings per share. Equities research analysts anticipate that McKesson Corporation will post $12.09 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, October 2nd. Shareholders of record on Friday, September 1st will be paid a $0.34 dividend. This represents a $1.36 dividend on an annualized basis and a yield of 0.91%. The ex-dividend date is Wednesday, August 30th. This is a positive change from McKesson Corporation’s previous quarterly dividend of $0.28. McKesson Corporation’s dividend payout ratio is presently 5.00%.
In other news, SVP Erin M. Lampert sold 404 shares of the firm’s stock in a transaction dated Tuesday, May 30th. The stock was sold at an average price of $160.53, for a total transaction of $64,854.12. Following the completion of the transaction, the senior vice president now owns 2,003 shares in the company, valued at $321,541.59. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Marie L/Ca Knowles sold 1,083 shares of the firm’s stock in a transaction dated Monday, July 31st. The shares were sold at an average price of $162.55, for a total value of $176,041.65. The disclosure for this sale can be found here. Insiders sold a total of 60,231 shares of company stock valued at $9,830,297 in the last quarter. 1.20% of the stock is currently owned by company insiders.
Several hedge funds and other institutional investors have recently modified their holdings of MCK. Wellington Management Group LLP raised its position in shares of McKesson Corporation by 0.9% in the first quarter. Wellington Management Group LLP now owns 22,730,846 shares of the company’s stock worth $3,370,074,000 after buying an additional 192,254 shares during the last quarter. BlackRock Inc. raised its position in shares of McKesson Corporation by 8.0% in the second quarter. BlackRock Inc. now owns 15,330,001 shares of the company’s stock worth $2,522,396,000 after buying an additional 1,131,024 shares during the last quarter. Vanguard Group Inc. raised its position in shares of McKesson Corporation by 0.4% in the second quarter. Vanguard Group Inc. now owns 14,090,544 shares of the company’s stock worth $2,318,457,000 after buying an additional 62,004 shares during the last quarter. Ballentine Partners LLC purchased a new position in shares of McKesson Corporation during the first quarter worth $191,000. Finally, Massachusetts Financial Services Co. MA raised its position in shares of McKesson Corporation by 3.8% in the first quarter. Massachusetts Financial Services Co. MA now owns 4,927,553 shares of the company’s stock worth $730,560,000 after buying an additional 180,107 shares during the last quarter. Hedge funds and other institutional investors own 89.10% of the company’s stock.
About McKesson Corporation
McKesson Corporation (McKesson) is engaged in delivering pharmaceuticals, medical supplies and healthcare information technology. The Company operates through two segments: McKesson Distribution Solutions and Technology Solutions. The McKesson Distribution Solutions segment distributes drugs and equipment, and health and beauty care products across North America and internationally.
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