McKesson (NYSE:MCK) Raised to Strong-Buy at StockNews.com

StockNews.com upgraded shares of McKesson (NYSE:MCK) from a buy rating to a strong-buy rating in a research note issued to investors on Saturday.

Several other research analysts have also issued reports on the stock. Mizuho raised their target price on shares of McKesson from $450.00 to $505.00 and gave the company a neutral rating in a research note on Friday, February 9th. UBS Group raised their price target on McKesson from $575.00 to $620.00 and gave the stock a buy rating in a research report on Wednesday, March 6th. Citigroup upped their price objective on McKesson from $575.00 to $620.00 and gave the company a buy rating in a report on Tuesday, April 30th. SVB Leerink assumed coverage on McKesson in a report on Monday, February 26th. They set an outperform rating and a $600.00 target price on the stock. Finally, Morgan Stanley upped their price target on McKesson from $522.00 to $548.00 and gave the company an overweight rating in a research note on Monday, April 15th. Two equities research analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of Moderate Buy and a consensus target price of $536.71.

McKesson Price Performance

McKesson stock opened at $533.41 on Friday. The company has a market capitalization of $70.10 billion, a PE ratio of 24.17, a price-to-earnings-growth ratio of 1.41 and a beta of 0.45. McKesson has a one year low of $364.08 and a one year high of $544.81. The business has a 50 day simple moving average of $530.66 and a 200 day simple moving average of $493.16.

McKesson (NYSE:MCK) last posted its earnings results on Wednesday, February 7th. The company reported $7.74 EPS for the quarter, topping the consensus estimate of $7.05 by $0.69. McKesson had a negative return on equity of 262.63% and a net margin of 0.99%. The business had revenue of $80.90 billion during the quarter, compared to the consensus estimate of $77.93 billion. During the same quarter last year, the company earned $6.90 EPS. McKesson’s revenue was up 14.8% on a year-over-year basis. Equities analysts anticipate that McKesson will post 27.59 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, July 1st. Shareholders of record on Monday, June 3rd will be paid a $0.62 dividend. This represents a $2.48 annualized dividend and a yield of 0.46%. The ex-dividend date of this dividend is Friday, May 31st. McKesson’s payout ratio is 11.24%.

Insider Buying and Selling at McKesson

In other news, CEO Brian S. Tyler sold 3,473 shares of the company’s stock in a transaction that occurred on Friday, March 15th. The stock was sold at an average price of $524.55, for a total transaction of $1,821,762.15. Following the sale, the chief executive officer now owns 43,445 shares in the company, valued at approximately $22,789,074.75. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. In other news, EVP Leann B. Smith sold 186 shares of the company’s stock in a transaction that occurred on Tuesday, February 13th. The stock was sold at an average price of $496.00, for a total transaction of $92,256.00. Following the sale, the executive vice president now owns 1,511 shares in the company, valued at approximately $749,456. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Brian S. Tyler sold 3,473 shares of the company’s stock in a transaction that occurred on Friday, March 15th. The stock was sold at an average price of $524.55, for a total value of $1,821,762.15. Following the sale, the chief executive officer now owns 43,445 shares in the company, valued at approximately $22,789,074.75. The disclosure for this sale can be found here. Company insiders own 0.21% of the company’s stock.

Institutional Investors Weigh In On McKesson

Large investors have recently added to or reduced their stakes in the business. OFI Invest Asset Management bought a new stake in McKesson in the 3rd quarter valued at $26,000. Sachetta LLC bought a new stake in McKesson in the 4th quarter valued at $27,000. Register Financial Advisors LLC bought a new stake in McKesson in the 1st quarter valued at $29,000. BKM Wealth Management LLC bought a new stake in McKesson in the 4th quarter valued at $31,000. Finally, Richardson Financial Services Inc. acquired a new position in McKesson in the 4th quarter valued at $31,000. Institutional investors own 85.07% of the company’s stock.

McKesson Company Profile

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.