Wall Street Zen Upgrades McKesson (NYSE:MCK) to "Buy"

Key Points

• Wall Street Zen upgraded McKesson to “Buy” from “Hold,” contributing to a consensus “Moderate Buy” rating. Fifteen analysts rate the stock Buy, while four rate it Hold, with an average price target of $990.35.
• McKesson reported quarterly revenue of $105.38 billion and earnings of $9.93 per share, exceeding analyst estimates of $103.88 billion and $9.56, respectively. Revenue increased 7.7% year over year, and fiscal 2027 EPS guidance was set at $44.20–$45.00.
• MCK opened at $1,005.39, near its 52-week high of $1,014.99, with a market capitalization of $117.22 billion. Institutional investors and hedge funds own approximately 85.07% of the company’s shares.

McKesson (NYSE:MCK - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a report released on Saturday, Wall Street Zen reports.

A number of other equities research analysts also recently weighed in on MCK. Evercore restated an "outperform" rating and set a $950.00 target price (down from $1,000.00) on shares of McKesson in a research report on Thursday, August 6th. Bank of America raised their price target on McKesson from $950.00 to $1,050.00 in a report on Thursday, August 6th. Morgan Stanley set a $977.00 price target on McKesson in a report on Tuesday, October 6th. Mizuho lifted their price objective on McKesson from $885.00 to $905.00 in a research report on Thursday, August 6th. Finally, TD Cowen boosted their price objective on McKesson from $989.00 to $1,006.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Fifteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, McKesson has a consensus rating of "Moderate Buy" and an average target price of $990.35.

McKesson Price Performance

MCK opened at $1,005.39 on Friday. The stock has a market capitalization of $117.22 billion, a P/E ratio of 24.46, a price-to-earnings-growth ratio of 1.99 and a beta of 0.30. The company's 50 day simple moving average is $897.66 and its 200-day simple moving average is $837.50. McKesson has a one year low of $723.68 and a one year high of $1,014.99.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to analysts' expectations of $103.88 billion. During the same quarter in the previous year, the company posted $8.26 EPS. McKesson's revenue was up 7.7% on a year-over-year basis. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, analysts anticipate that McKesson will post 44.71 EPS for the current year.

Insider Buying and Selling at McKesson

In related news, Director Bradley Lerman sold 301 shares of McKesson stock in a transaction on Monday, August 10th. The stock was sold at an average price of $892.33, for a total transaction of $268,591.33. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO B Jr sold 111 shares of McKesson stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $891.45, for a total value of $98,950.95. Following the sale, the chief accounting officer directly owned 521 shares of the company's stock, valued at approximately $464,445.45. This trade represents a 17.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.06% of the stock is owned by company insiders.

Hedge Funds Weigh In On McKesson

Several institutional investors have recently modified their holdings of MCK. BlackRock Inc. bought a new stake in shares of McKesson in the 2nd quarter valued at about $8,156,743,000. Bank of America Corp DE boosted its stake in McKesson by 2.4% during the 1st quarter. Bank of America Corp DE now owns 1,538,726 shares of the company's stock worth $1,331,552,000 after acquiring an additional 35,916 shares during the last quarter. Swedbank AB boosted its stake in McKesson by 13.5% during the 1st quarter. Swedbank AB now owns 1,005,610 shares of the company's stock worth $870,215,000 after acquiring an additional 119,327 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in McKesson by 3.3% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 922,573 shares of the company's stock worth $697,096,000 after acquiring an additional 29,747 shares during the last quarter. Finally, Legal & General Group Plc acquired a new position in McKesson during the second quarter valued at approximately $656,566,000. 85.07% of the stock is currently owned by institutional investors and hedge funds.

About McKesson

McKesson Corporation NYSE: MCK is a healthcare services and information technology company that distributes pharmaceuticals, specialty drugs, medical supplies and other healthcare products. The company serves pharmacies, hospitals, health systems, physician practices, biopharma manufacturers and other healthcare providers, helping move products from manufacturers to patients and care settings.

McKesson's principal operations include pharmaceutical distribution, medical-surgical supply distribution and technology-enabled services for pharmacies and providers.

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