McKesson Corporation (NYSE:MCK)’s share price gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $172.70, but opened at $166.35. McKesson Corporation shares last traded at $162.53, with a volume of 3,253,920 shares traded.

The company reported $2.46 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $2.81 by $0.35. The company had revenue of $51.05 billion for the quarter, compared to analyst estimates of $51.22 billion. McKesson Corporation had a return on equity of 25.76% and a net margin of 2.42%. McKesson Corporation’s quarterly revenue was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $3.50 EPS.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 2nd. Shareholders of record on Friday, September 1st will be issued a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a yield of 0.88%. The ex-dividend date is Wednesday, August 30th. This is an increase from McKesson Corporation’s previous quarterly dividend of $0.28. McKesson Corporation’s payout ratio is presently 5.00%.

A number of equities analysts have recently weighed in on MCK shares. Vetr downgraded McKesson Corporation from a “strong-buy” rating to a “buy” rating and set a $157.86 target price on the stock. in a report on Tuesday, April 11th. Evercore ISI reiterated an “outperform” rating and issued a $166.00 target price on shares of McKesson Corporation in a report on Monday, April 17th. Leerink Swann reiterated a “hold” rating and issued a $140.00 target price on shares of McKesson Corporation in a report on Friday, April 21st. Barclays PLC reiterated an “overweight” rating and issued a $174.00 target price on shares of McKesson Corporation in a report on Thursday, April 27th. Finally, Zacks Investment Research downgraded McKesson Corporation from a “hold” rating to a “sell” rating in a report on Wednesday, May 3rd. One analyst has rated the stock with a sell rating, ten have assigned a hold rating and nine have issued a buy rating to the company. The company has a consensus rating of “Hold” and a consensus price target of $171.21.

In other McKesson Corporation news, Chairman John H. Hammergren sold 19,316 shares of the company’s stock in a transaction that occurred on Tuesday, May 30th. The stock was sold at an average price of $162.31, for a total transaction of $3,135,179.96. Following the completion of the sale, the chairman now owns 96,644 shares of the company’s stock, valued at $15,686,287.64. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Marie L/Ca Knowles sold 1,083 shares of the company’s stock in a transaction that occurred on Monday, July 31st. The stock was 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 have sold 60,231 shares of company stock valued at $9,830,297 in the last ninety days. Company insiders own 1.20% of the company’s stock.

Large investors have recently made changes to their positions in the company. Wellington Management Group LLP boosted its stake 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 2,026.2% in the first quarter. BlackRock Inc. now owns 14,198,977 shares of the company’s stock worth $2,105,140,000 after buying an additional 13,531,173 shares during the period. Ballentine Partners LLC acquired a new position in shares of McKesson Corporation during the first quarter worth approximately $191,000. 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 period. Finally, Parnassus Investments CA raised its position in shares of McKesson Corporation by 310.0% in the first quarter. Parnassus Investments CA now owns 4,280,594 shares of the company’s stock worth $620,727,000 after buying an additional 3,236,594 shares during the period. 89.10% of the stock is owned by hedge funds and other institutional investors.

The firm has a market capitalization of $32.70 billion, a P/E ratio of 7.06 and a beta of 1.13. The company has a 50-day moving average price of $164.64 and a 200 day moving average price of $151.68.

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McKesson Corporation Company Profile

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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