McKesson (NYSE:MCK) Earns "Sector Perform" Rating from Royal Bank Of Canada

Key Points

• Royal Bank of Canada reiterated its “Sector Perform” rating on McKesson and set an $845 price target, implying 5.58% downside from the prior close.
• McKesson reported quarterly EPS of $9.93, beating estimates of $9.56, while revenue rose 7.7% year over year to $105.38 billion. The company set fiscal 2027 EPS guidance at $44.20–$45.00.
• Despite RBC’s cautious view, analyst sentiment remains favorable: 14 analysts rate McKesson a Buy and four rate it a Hold, producing a “Moderate Buy” consensus and an average price target of $973.44.

McKesson (NYSE:MCK - Get Free Report)'s stock had its "sector perform" rating restated by analysts at Royal Bank Of Canada in a research note issued on Monday, Benzinga reports. They presently have a $845.00 price objective on the stock. Royal Bank Of Canada's price target indicates a potential downside of 5.58% from the stock's previous close.

Several other research analysts also recently commented on the company. UBS Group raised their price objective on McKesson from $1,050.00 to $1,080.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. TD Cowen raised their price target on McKesson from $989.00 to $1,006.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Robert W. Baird set a $1,015.00 target price on shares of McKesson in a research report on Thursday, August 6th. Weiss Ratings upgraded shares of McKesson from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, September 4th. Finally, Barclays increased 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. Fourteen investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, McKesson has a consensus rating of "Moderate Buy" and a consensus price target of $973.44.

McKesson Trading Up 1.5%

McKesson stock opened at $894.94 on Monday. McKesson has a 12 month low of $687.68 and a 12 month high of $999.00. The stock has a fifty day simple moving average of $860.19 and a two-hundred day simple moving average of $840.52. The firm has a market cap of $104.34 billion, a price-to-earnings ratio of 23.95, a PEG ratio of 1.75 and a beta of 0.30.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $9.56 by $0.37. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The firm had revenue of $105.38 billion for the quarter, compared to the consensus estimate of $103.88 billion. During the same quarter last year, the firm posted $8.26 EPS. The business's quarterly revenue was up 7.7% compared to the same quarter last year. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. On average, equities research analysts forecast that McKesson will post 44.65 EPS for the current fiscal year.

Insider Transactions at McKesson

In related news, CAO B Jr sold 111 shares of McKesson stock in a transaction that occurred on Tuesday, September 8th. The stock was 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 in the company, valued at approximately $464,445.45. This trade represents a 17.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brian Tyler sold 8,463 shares of the company's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $793.56, for a total transaction of $6,715,898.28. Following the completion of the transaction, the chief executive officer owned 5,919 shares of the company's stock, valued at approximately $4,697,081.64. This trade represents a 58.84% 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. Insiders have sold 17,338 shares of company stock worth $13,643,366 over the last 90 days. 0.06% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On McKesson

A number of hedge funds have recently modified their holdings of MCK. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of McKesson in the 4th quarter valued at approximately $25,000. Swiss RE Ltd. purchased a new stake in shares of McKesson in the 4th quarter valued at approximately $26,000. Delos Wealth Advisors LLC acquired a new stake in McKesson in the second quarter valued at $27,000. State of Wyoming acquired a new stake in shares of McKesson during the 2nd quarter worth about $29,000. Finally, Kingdom Financial Group LLC. purchased a new stake in shares of McKesson during the 4th quarter worth approximately $33,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

McKesson Company Profile

McKesson Corporation is a healthcare services and distribution company that supplies pharmaceuticals, specialty drugs, medical products and related services to pharmacies, hospitals, health systems, physicians and other healthcare providers. Its operations support the movement of prescription medicines and medical-surgical supplies from manufacturers to healthcare organizations and patients.

The company's businesses include pharmaceutical distribution, specialty pharmaceutical services, medical-surgical supply distribution and technology solutions for pharmacies and other healthcare providers.

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