McKesson (NYSE:MCK) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The brokerage currently has a $177.00 price objective on the stock. Zacks Investment Research‘s price target would indicate a potential upside of 11.71% from the stock’s current price.
According to Zacks, “McKesson has had an unimpressive run on the bourse in the last three months. However, solid performance at the Distribution Solutions segment is likely to drive growth. The company’s strong guidance for fiscal 2018 holds promise. The upside is expected to be driven by market growth, acquisitions and divestitures. Recently, McKesson announced that it has entered into an agreement to buy RxCrossroads from CVS Health for $735 million. The acquisition is expected to close by fourth-quarter. On the flipside, revenues from Technology Solutions are expected to be down year over year. Furthermore, stiff competition, currency headwind and reimbursement issues remain challenges. Pricing pressure in the independent retail pharmacy channel is a headwind. Particularly, McKesson’s sell-side pricing environment continues to remain competitive with less pricing variability.”
A number of other equities research analysts have also weighed in on the company. Needham & Company LLC set a $178.00 target price on McKesson and gave the company a “buy” rating in a research note on Tuesday, October 24th. Credit Suisse Group reissued an “underperform” rating and issued a $130.00 target price (down previously from $155.00) on shares of McKesson in a research note on Thursday, November 9th. Royal Bank of Canada reissued a “hold” rating and issued a $170.00 target price on shares of McKesson in a research note on Friday, October 27th. Deutsche Bank initiated coverage on McKesson in a research note on Monday, December 4th. They issued a “buy” rating and a $175.00 target price for the company. Finally, Morgan Stanley lowered McKesson from an “overweight” rating to an “equal weight” rating and lowered their target price for the company from $184.00 to $172.00 in a research note on Thursday, September 14th. Two investment analysts have rated the stock with a sell rating, six have assigned a hold rating and twelve have issued a buy rating to the stock. McKesson has a consensus rating of “Buy” and a consensus price target of $173.92.
McKesson (NYSE:MCK) last released its earnings results on Thursday, October 26th. The company reported $3.28 earnings per share for the quarter, beating analysts’ consensus estimates of $2.78 by $0.50. McKesson had a return on equity of 24.87% and a net margin of 2.24%. The company had revenue of $52.06 billion during the quarter, compared to analyst estimates of $51.69 billion. During the same quarter in the previous year, the company posted $2.94 EPS. McKesson’s revenue for the quarter was up 4.2% on a year-over-year basis. sell-side analysts anticipate that McKesson will post 12.19 earnings per share for the current year.
In other McKesson news, CEO John H. Hammergren sold 100,000 shares of the company’s stock in a transaction that occurred on Wednesday, September 27th. The stock was sold at an average price of $155.30, for a total transaction of $15,530,000.00. Following the transaction, the chief executive officer now owns 165,000 shares in the company, valued at approximately $25,624,500. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Chairman John H. Hammergren sold 65,000 shares of the company’s stock in a transaction that occurred on Thursday, December 14th. The stock was sold at an average price of $160.00, for a total value of $10,400,000.00. The disclosure for this sale can be found here. Insiders have sold a total of 364,000 shares of company stock worth $56,516,110 in the last quarter. Company insiders own 1.20% of the company’s stock.
Several hedge funds have recently bought and sold shares of the business. Ingalls & Snyder LLC lifted its position in McKesson by 76.7% in the 3rd quarter. Ingalls & Snyder LLC now owns 16,939 shares of the company’s stock valued at $2,602,000 after acquiring an additional 7,352 shares in the last quarter. Whittier Trust Co. lifted its position in McKesson by 1.5% in the 3rd quarter. Whittier Trust Co. now owns 62,812 shares of the company’s stock valued at $9,649,000 after acquiring an additional 898 shares in the last quarter. Wells Fargo & Company MN lifted its position in McKesson by 12.7% in the 2nd quarter. Wells Fargo & Company MN now owns 2,121,171 shares of the company’s stock valued at $349,017,000 after acquiring an additional 239,358 shares in the last quarter. River & Mercantile Asset Management LLP lifted its position in McKesson by 278.6% in the 3rd quarter. River & Mercantile Asset Management LLP now owns 177,824 shares of the company’s stock valued at $27,321,000 after acquiring an additional 130,852 shares in the last quarter. Finally, Dai Ichi Life Insurance Company Ltd lifted its position in McKesson by 194.3% in the 2nd quarter. Dai Ichi Life Insurance Company Ltd now owns 29,462 shares of the company’s stock valued at $4,848,000 after acquiring an additional 19,450 shares in the last quarter. Hedge funds and other institutional investors own 87.88% of the company’s stock.
McKesson Company Profile
McKesson Corporation is a healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology company. The Company provides medicines, medical products and healthcare services by partnering with pharmaceutical manufacturers, providers, pharmacies, governments and other organizations in healthcare.
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