JPMorgan Chase & Co. Forecasts Strong Price Appreciation for McKesson (NYSE:MCK) Stock

Key Points

• JPMorgan raised McKesson’s price target from $1,042 to $1,255 and maintained an “overweight” rating, implying 16.78% upside from the prior close.
• Analyst sentiment is broadly positive: 15 analysts rate the stock a Buy and four a Hold, with a consensus “Moderate Buy” rating and an average target of $1,040.29.
• McKesson beat quarterly earnings and revenue estimates, reporting EPS of $11.68 versus $10.72 expected and revenue of $110.96 billion, up 7.5% year over year.

McKesson (NYSE:MCK - Get Free Report) had its target price upped by JPMorgan Chase & Co. from $1,042.00 to $1,255.00 in a research note issued on Tuesday, Benzinga reports. The firm currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price target would indicate a potential upside of 16.78% from the stock's previous close.

Other research analysts have also issued reports about the stock. Royal Bank Of Canada upped their target price on shares of McKesson from $845.00 to $965.00 and gave the stock a "sector perform" rating in a research report on Thursday, November 5th. TD Cowen lifted their price target on shares of McKesson from $1,006.00 to $1,200.00 and gave the company a "buy" rating in a research report on Thursday, November 5th. Wells Fargo & Company boosted their price target on McKesson from $812.00 to $933.00 and gave the stock an "equal weight" rating in a research note on Tuesday, August 11th. Citigroup boosted their price target on McKesson from $945.00 to $1,000.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. Finally, Barclays upped their price target on McKesson from $925.00 to $1,000.00 and gave the stock an "overweight" rating in a report on Wednesday, August 19th. Fifteen research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $1,040.29.

McKesson Stock Up 1.4%

Shares of McKesson stock traded up $15.30 during trading on Tuesday, reaching $1,074.67. The company's stock had a trading volume of 123,262 shares, compared to its average volume of 913,802. The business has a 50 day moving average price of $941.40 and a 200-day moving average price of $869.30. McKesson has a 12-month low of $723.68 and a 12-month high of $1,121.50. The company has a market capitalization of $125.30 billion, a P/E ratio of 27.60, a price-to-earnings-growth ratio of 2.13 and a beta of 0.27.

McKesson (NYSE:MCK - Get Free Report) last released its quarterly earnings data on Wednesday, November 4th. The company reported $11.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $10.72 by $0.96. McKesson had a negative return on equity of 235.48% and a net margin of 1.12%. The firm had revenue of $110.96 billion during the quarter, compared to analysts' expectations of $109.90 billion. During the same quarter in the prior year, the business posted $9.86 earnings per share. McKesson's revenue was up 7.5% compared to the same quarter last year. Research analysts predict that McKesson will post 46.21 EPS for the current fiscal year.

Insider Transactions at McKesson

In other news, EVP Francisco Fraga sold 800 shares of McKesson stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $995.80, for a total transaction of $796,640.00. Following the completion of the sale, the executive vice president directly owned 5,423 shares in the company, valued at $5,400,223.40. The trade was a 12.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Napoleon B. Rutledge, Jr. sold 111 shares of the business's stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $891.45, for a total transaction of $98,950.95. Following the completion of the transaction, the chief accounting officer directly owned 521 shares of the company's stock, valued at approximately $464,445.45. This represents a 17.56% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 2,161 shares of company stock worth $2,242,515. 0.06% of the stock is owned by insiders.

Institutional Trading of McKesson

Hedge funds have recently bought and sold shares of the company. Nvwm LLC lifted its stake in shares of McKesson by 933.3% during the 3rd quarter. Nvwm LLC now owns 31 shares of the company's stock worth $26,000 after purchasing an additional 28 shares during the period. Delos Wealth Advisors LLC purchased a new stake in shares of McKesson in the second quarter valued at $27,000. Trellis Wealth Advisors LLC purchased a new stake in shares of McKesson in the third quarter valued at $32,000. GK Wealth Management LLC acquired a new position in McKesson in the third quarter valued at $38,000. Finally, Curry Webb Wealth Management LLC acquired a new position in McKesson in the third quarter valued at $38,000. Institutional investors and hedge funds own 85.07% of the company's stock.

About McKesson

McKesson Corporation is a healthcare services and information technology company that distributes pharmaceuticals and other medical products. Its customers include pharmacies, hospitals, health systems, clinics and other healthcare providers.

The company also provides medical-surgical supplies and technology and services that support pharmacy operations, prescription management and care delivery. Its offerings include specialized support for oncology and other areas of care.

Founded in 1833, McKesson serves customers primarily in the United States and Canada.

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