McKesson Corporation (NYSE:MCK) Given Average Rating of "Moderate Buy" by Analysts

Key Points

• McKesson has an average analyst rating of “Moderate Buy”, with 14 buy ratings and 3 hold ratings across 17 firms. The average 12-month price target is about $960.53.
• The stock was down 1.9% in Tuesday trading, opening at $749.37, well below its 52-week high of $999.00. McKesson also reported a strong latest quarter with EPS of $11.69, beating estimates, though revenue came in below expectations.
• The company recently declared a quarterly dividend of $0.82 per share, equal to an annualized payout of $3.28 and a yield of about 0.4%. Insider selling was also noted, while institutional investors continue to hold the vast majority of shares.

McKesson Corporation (NYSE:MCK - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the seventeen ratings firms that are presently covering the stock, MarketBeat.com reports. Three analysts have rated the stock with a hold recommendation and fourteen have issued a buy recommendation on the company. The average 12 month target price among brokerages that have issued a report on the stock in the last year is $960.5333.

Several research firms recently weighed in on MCK. William Blair began coverage on McKesson in a report on Tuesday, April 28th. They issued an "outperform" rating for the company. Citigroup reduced their target price on McKesson from $975.00 to $945.00 and set a "buy" rating for the company in a report on Thursday, May 14th. Bank of America cut their target price on shares of McKesson from $1,040.00 to $1,000.00 and set a "buy" rating for the company in a research report on Monday, April 6th. UBS Group boosted their target price on shares of McKesson from $1,000.00 to $1,050.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Finally, Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $875.00 target price on shares of McKesson in a research report on Friday, May 8th.

McKesson Trading Down 1.9%

MCK stock opened at $749.37 on Tuesday. McKesson has a 1 year low of $637.00 and a 1 year high of $999.00. The company has a fifty day simple moving average of $775.18 and a 200 day simple moving average of $840.27. The firm has a market cap of $87.74 billion, a PE ratio of 19.48, a PEG ratio of 1.26 and a beta of 0.31.

McKesson (NYSE:MCK - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $11.69 earnings per share for the quarter, topping the consensus estimate of $11.56 by $0.13. McKesson had a negative return on equity of 345.35% and a net margin of 1.18%.The firm had revenue of $96.30 billion during the quarter, compared to analyst estimates of $101.35 billion. During the same period in the previous year, the company earned $10.12 EPS. The company's revenue for the quarter was up 6.0% on a year-over-year basis. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. As a group, analysts forecast that McKesson will post 44.28 EPS for the current fiscal year.

McKesson Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st will be given a dividend of $0.82 per share. The ex-dividend date of this dividend is Monday, June 1st. This represents a $3.28 dividend on an annualized basis and a yield of 0.4%. McKesson's payout ratio is currently 8.53%.

Insider Activity

In other McKesson news, EVP Michele Lau sold 3,550 shares of the business's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $761.09, for a total transaction of $2,701,869.50. Following the completion of the transaction, the executive vice president owned 3,247 shares of the company's stock, valued at $2,471,259.23. The trade was a 52.23% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the company's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $764.00, for a total value of $101,612.00. Following the transaction, the chief accounting officer owned 632 shares of the company's stock, valued at approximately $482,848. This trade represents a 17.39% 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. Insiders sold 20,285 shares of company stock worth $15,546,137 in the last 90 days. Insiders own 0.06% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the business. Norges Bank acquired a new position in shares of McKesson during the fourth quarter valued at about $1,651,137,000. Swedbank AB raised its position in shares of McKesson by 42.2% during the fourth quarter. Swedbank AB now owns 886,283 shares of the company's stock valued at $727,009,000 after buying an additional 263,189 shares during the last quarter. Healthcare of Ontario Pension Plan Trust Fund raised its position in shares of McKesson by 4,300.3% during the first quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 214,693 shares of the company's stock valued at $185,787,000 after buying an additional 209,814 shares during the last quarter. SurgoCap Partners LP raised its position in shares of McKesson by 68.7% during the third quarter. SurgoCap Partners LP now owns 452,261 shares of the company's stock valued at $349,390,000 after buying an additional 184,106 shares during the last quarter. Finally, Robeco Institutional Asset Management B.V. raised its position in shares of McKesson by 73.7% during the fourth quarter. Robeco Institutional Asset Management B.V. now owns 432,578 shares of the company's stock valued at $354,839,000 after buying an additional 183,590 shares during the last quarter. 85.07% of the stock is currently owned by institutional investors and hedge funds.

McKesson Company Profile

McKesson Corporation NYSE: MCK is a global healthcare services and distribution company that supplies pharmaceuticals, medical-surgical products and health care technology solutions. Founded in 1833 and headquartered in Irving, Texas, McKesson operates across the drug distribution and healthcare services value chain, connecting manufacturers, pharmacies, hospitals and health systems to help manage the movement of medicines and clinical supplies.

The company's core activities include pharmaceutical wholesale distribution and logistics, specialty pharmacy services, and the provision of medical-surgical supplies to acute and non-acute care providers.

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