McKesson Corporation (NYSE:MCK) Stock Has Consensus Target Price of $997.12 According to Brokerages

Key Points

• Analysts remain broadly positive: Nineteen analysts give McKesson a consensus “Moderate Buy” rating, with 15 buys and four holds. The average 12-month price target is $997.12, including targets ranging from $933 to $1,050.
• McKesson exceeded quarterly expectations: The company reported $9.93 in quarterly EPS versus the $9.56 consensus estimate, while revenue rose 7.7% year over year to $105.38 billion. Analysts expect approximately $44.71 in EPS for the current fiscal year.
• Institutional ownership is substantial, while insiders have recently sold shares: Institutional investors own 85.07% of McKesson, with several major firms increasing or initiating positions. Insiders sold 1,212 shares worth about $1.16 million over the past three months, and the company declared a quarterly dividend of $0.94 per share.

Shares of McKesson Corporation (NYSE:MCK - Get Free Report) have earned an average rating of "Moderate Buy" from the nineteen analysts that are covering the stock, MarketBeat Ratings reports. Four investment analysts have rated the stock with a hold recommendation and fifteen have issued a buy recommendation on the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $997.12.

Several analysts have issued reports on MCK shares. Bank of America lifted their price target on McKesson from $950.00 to $1,050.00 in a research note on Thursday, August 6th. Morgan Stanley set a $977.00 price target on McKesson in a research note on Tuesday, October 6th. Wells Fargo & Company upped their price target on McKesson from $812.00 to $933.00 and gave the company an "equal weight" rating in a research report on Tuesday, August 11th. Robert W. Baird set a $1,015.00 price objective on shares of McKesson in a research report on Thursday, August 6th. Finally, Weiss Ratings raised shares of McKesson from a "buy (b-)" rating to a "buy (b)" rating in a report on Friday, September 4th.

Insider Activity

In related news, EVP Francisco Fraga sold 800 shares of McKesson stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $995.80, for a total transaction of $796,640.00. Following the sale, the executive vice president owned 5,423 shares of the company's stock, valued at approximately $5,400,223.40. This trade represents a 12.86% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradley Lerman sold 301 shares of the business's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $892.33, for a total transaction of $268,591.33. The disclosure for this sale is available in the SEC filing. Insiders have sold 1,212 shares of company stock worth $1,164,182 in the last three months. Company insiders own 0.06% of the company's stock.

Institutional Trading of McKesson

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of McKesson during the 2nd quarter valued at approximately $8,156,743,000. Bank of America Corp DE raised its holdings in McKesson by 2.4% during the first quarter. Bank of America Corp DE now owns 1,538,726 shares of the company's stock worth $1,331,552,000 after purchasing an additional 35,916 shares in the last quarter. Swedbank AB lifted its stake in McKesson by 13.5% in the first quarter. Swedbank AB now owns 1,005,610 shares of the company's stock valued at $870,215,000 after buying an additional 119,327 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in McKesson by 3.3% in 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 valued at $697,096,000 after acquiring an additional 29,747 shares during the period. Finally, Legal & General Group Plc acquired a new stake in McKesson in the second quarter valued at about $656,566,000. Institutional investors and hedge funds own 85.07% of the company's stock.

McKesson Trading Up 0.0%

NYSE MCK opened at $994.77 on Monday. The stock has a market cap of $115.98 billion, a P/E ratio of 26.62, a PEG ratio of 1.98 and a beta of 0.27. McKesson has a 52 week low of $723.68 and a 52 week high of $1,030.27. The company's fifty day simple moving average is $922.54 and its 200-day simple moving average is $862.89.

McKesson (NYSE:MCK - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 EPS for the quarter, topping analysts' consensus estimates of $9.56 by $0.37. The company had revenue of $105.38 billion for the quarter, compared to the consensus estimate of $103.88 billion. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. McKesson's revenue was up 7.7% on a year-over-year basis. During the same period in the previous year, the firm earned $8.26 EPS. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. On average, research analysts expect that McKesson will post 44.71 EPS for the current fiscal year.

McKesson Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, January 4th. Stockholders of record on Tuesday, December 1st will be paid a $0.94 dividend. This represents a $3.76 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Tuesday, December 1st. McKesson's dividend payout ratio is 10.06%.

About McKesson

McKesson Corporation is a healthcare services and information technology company that distributes pharmaceuticals and medical products to pharmacies, hospitals, health systems, physicians and other healthcare providers. The company also provides technology, data and business solutions designed to support prescription management, pharmacy operations and patient care.

McKesson's principal activities include pharmaceutical distribution, medical-surgical supply distribution, specialty pharmaceutical services and oncology care support.

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