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

Key Points

• McKesson Corporation has received a consensus recommendation of "Moderate Buy" from thirteen analysts, with an average 12-month target price of $725.10.
• The company recently increased its quarterly dividend to $0.82 per share, which represents an annualized dividend of $3.28 with a yield of 0.5%.
• McKesson's Q2 earnings report revealed a missed EPS estimate, reporting $8.26 against an expected $8.33, but had a significant revenue increase of 23.4% compared to the previous year.

McKesson Corporation (NYSE:MCK - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the thirteen analysts that are currently covering the company, MarketBeat reports. Three analysts have rated the stock with a hold recommendation, nine have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month target price among analysts that have issued a report on the stock in the last year is $725.10.

Several equities analysts have recently issued reports on the company. Bank of America upped their price target on McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a report on Friday, May 9th. Morgan Stanley reaffirmed an "overweight" rating and issued a $810.00 price target (up previously from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Wells Fargo & Company upped their price target on McKesson from $766.00 to $772.00 and gave the stock an "equal weight" rating in a report on Wednesday, August 13th. Wall Street Zen cut McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Finally, Cowen reaffirmed a "buy" rating on shares of McKesson in a report on Thursday, August 7th.

McKesson Trading Up 0.7%

Shares of NYSE:MCK opened at $691.32 on Wednesday. McKesson has a 12-month low of $464.42 and a 12-month high of $737.89. The business's fifty day simple moving average is $701.11 and its 200-day simple moving average is $689.23. The company has a market capitalization of $85.99 billion, a PE ratio of 27.56, a P/E/G ratio of 1.37 and a beta of 0.51.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results 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 for the quarter, compared to analysts' expectations of $95.93 billion. During the same quarter last year, the firm earned $7.88 earnings per share. The firm's quarterly revenue was up 23.4% compared to the same quarter last year. Research analysts predict that McKesson will post 32.77 EPS for the current year.

McKesson Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd will be paid a dividend of $0.82 per share. This is an increase from McKesson's previous quarterly dividend of $0.71. The ex-dividend date is Tuesday, September 2nd. This represents a $3.28 annualized dividend and a yield of 0.5%. McKesson's dividend payout ratio (DPR) is presently 11.32%.

Insider Buying and Selling

In related news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $663.67, for a total value of $218,347.43. Following the completion of the transaction, the chief accounting officer directly owned 657 shares in the company, valued at approximately $436,031.19. This represents a 33.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Brian S. Tyler sold 11,930 shares of the stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $705.63, for a total value of $8,418,165.90. Following the completion of the transaction, the chief executive officer owned 4,012 shares of the company's stock, valued at $2,830,987.56. The trade was a 74.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 62,930 shares of company stock valued at $44,112,466 over the last 90 days. Company insiders own 0.08% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Solstein Capital LLC raised its stake in shares of McKesson by 171.4% in the second quarter. Solstein Capital LLC now owns 38 shares of the company's stock valued at $28,000 after acquiring an additional 24 shares in the last quarter. State of Wyoming acquired a new stake in shares of McKesson in the second quarter valued at $29,000. GFG Capital LLC acquired a new stake in shares of McKesson in the second quarter valued at $30,000. CBIZ Investment Advisory Services LLC increased its holdings in McKesson by 1,366.7% in the first quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after buying an additional 41 shares during the last quarter. Finally, Capital A Wealth Management LLC purchased a new position in McKesson in the fourth quarter valued at $26,000. 85.07% of the stock is currently owned by institutional investors and hedge funds.

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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