JPMorgan Chase & Co. Increases McKesson (NYSE:MCK) Price Target to $853.00

Key Points

• JPMorgan Chase & Co. has raised the price target for McKesson (NYSE:MCK) from $821.00 to $853.00, indicating a potential upside of 15.64% from the stock's previous close.
• McKesson's stock has received several upgrades from other investment firms, with targets from $770.00 to $860.00 and an overall average rating of "Moderate Buy".
• The company reported quarterly earnings of $8.26 per share, falling short of estimates, despite a revenue increase of 23.4% year-over-year.

McKesson (NYSE:MCK - Get Free Report) had its price objective lifted by investment analysts at JPMorgan Chase & Co. from $821.00 to $853.00 in a research note issued on Friday,Benzinga reports. The brokerage currently has an "overweight" rating on the stock. JPMorgan Chase & Co.'s price objective points to a potential upside of 15.64% from the stock's previous close.

MCK has been the topic of a number of other reports. Mizuho boosted their price target on shares of McKesson from $750.00 to $770.00 and gave the stock a "neutral" rating in a report on Wednesday. Leerink Partners upped their price objective on McKesson from $785.00 to $850.00 and gave the company an "outperform" rating in a research note on Wednesday. Cowen reaffirmed a "buy" rating on shares of McKesson in a research report on Wednesday. UBS Group upped their price target on McKesson from $820.00 to $860.00 and gave the company a "buy" rating in a research report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft upped their price objective on shares of McKesson from $775.00 to $856.00 and gave the company a "buy" rating in a report on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, McKesson has an average rating of "Moderate Buy" and a consensus price target of $829.08.

McKesson Stock Down 3.0%

Shares of NYSE MCK opened at $737.65 on Friday. McKesson has a twelve month low of $472.50 and a twelve month high of $770.00. The stock's 50 day moving average price is $696.77 and its 200-day moving average price is $698.45. The company has a market capitalization of $91.75 billion, a PE ratio of 29.41, a PEG ratio of 1.47 and a beta of 0.51.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $8.26 earnings per share for the quarter, missing the consensus estimate of $8.33 by ($0.07). McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.The business had revenue of $97.83 billion during the quarter, compared to analysts' expectations of $95.93 billion. During the same period in the prior year, the firm posted $7.88 EPS. The firm's revenue for the quarter was up 23.4% on a year-over-year basis. As a group, research analysts expect that McKesson will post 32.77 EPS for the current fiscal year.

Insider Buying and Selling at McKesson

In other news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the firm's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $663.67, for a total transaction of $218,347.43. Following the sale, the chief accounting officer owned 657 shares in the company, valued at approximately $436,031.19. This trade represents a 33.37% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Brian S. Tyler sold 11,930 shares of the firm's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $705.63, for a total value of $8,418,165.90. Following the sale, the chief executive officer owned 4,012 shares in the company, valued at $2,830,987.56. The trade was a 74.83% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 43,560 shares of company stock worth $30,438,602. Corporate insiders own 0.08% of the company's stock.

Hedge Funds Weigh In On McKesson

A number of large investors have recently added to or reduced their stakes in MCK. Vanguard Group Inc. increased its holdings in shares of McKesson by 2.0% in the second quarter. Vanguard Group Inc. now owns 12,072,090 shares of the company's stock worth $8,846,186,000 after buying an additional 232,286 shares during the period. Geode Capital Management LLC increased its stake in McKesson by 4.1% in the 2nd quarter. Geode Capital Management LLC now owns 2,820,724 shares of the company's stock worth $2,057,065,000 after purchasing an additional 112,224 shares during the period. GAMMA Investing LLC increased its stake in McKesson by 75,632.7% in the 1st quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock worth $1,610,567,000 after purchasing an additional 2,389,992 shares during the period. Alliancebernstein L.P. increased its stake in McKesson by 150.4% in the 2nd quarter. Alliancebernstein L.P. now owns 2,268,015 shares of the company's stock worth $1,661,956,000 after purchasing an additional 1,362,386 shares during the period. Finally, Norges Bank purchased a new position in shares of McKesson in the second quarter worth $1,346,661,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

About McKesson

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.

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