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

Key Points

• McKesson has an average analyst rating of “Moderate Buy”, with 14 of 17 brokerages calling it a buy and an average 12-month price target of about $970.73.
• The company reported strong quarterly earnings of $11.69 per share, beating estimates, and raised guidance for fiscal 2027 EPS to $43.80-$44.60, though revenue came in below expectations at $96.3 billion.
• Despite the earnings beat, the stock has faced pressure as investors focus on the revenue miss and near-term softness in the medical-surgical business; recent insider sales and a large medical-surgical spinoff plan add to the mixed picture.

McKesson Corporation (NYSE:MCK - Get Free Report) has been given an average recommendation of "Moderate Buy" by the seventeen brokerages that are covering the firm, Marketbeat reports. Three investment analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. The average 12 month price objective among brokerages that have updated their coverage on the stock in the last year is $970.7333.

A number of research firms have recently issued reports on MCK. JPMorgan Chase & Co. cut their target price on shares of McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating for the company in a research note on Friday. Leerink Partners reiterated an "outperform" rating and issued a $1,085.00 target price on shares of McKesson in a research note on Thursday, March 5th. Evercore reiterated an "outperform" rating on shares of McKesson in a research note on Thursday, March 5th. Raymond James Financial set a $970.00 target price on shares of McKesson in a research note on Thursday, March 5th. Finally, Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $875.00 target price on shares of McKesson in a research note on Friday.

Trending Headlines about McKesson

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson beat quarterly adjusted EPS estimates, reporting $11.69 per share versus $11.56 expected, and cited strength in oncology, specialty distribution, and biopharma services. Reuters article
• Positive Sentiment: The company guided fiscal 2027 EPS to $43.80-$44.60, which is roughly in line with expectations and suggests continued earnings growth. McKesson also reaffirmed its long-term financial targets. Yahoo Finance article
• Positive Sentiment: JPMorgan lowered its price target to $1,015 from $1,107 but kept an overweight rating, implying meaningful upside from the current share price. Benzinga article
• Positive Sentiment: William Blair reiterated a Buy rating, saying McKesson’s durable earnings power and fiscal 2027 growth outlook outweigh near-term revenue softness. TipRanks article
• Neutral Sentiment: McKesson advanced plans for its $13 billion medical-surgical spinoff/separation, a strategic move that could unlock value over time but also adds execution risk. MSN article
• Negative Sentiment: Revenue came in below Wall Street forecasts at $96.3 billion versus $101.35 billion expected, reinforcing concerns about softer sales momentum despite improved margins. Yahoo Finance article
• Negative Sentiment: The stock has been trading lower as investors focus on the revenue shortfall and near-term softness in the medical-surgical business, even with strong earnings and guidance. Zacks article

Insider Activity

In other news, Director Maria Martinez sold 349 shares of the stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $939.87, for a total transaction of $328,014.63. Following the sale, the director directly owned 301 shares of the company's stock, valued at $282,900.87. This represents a 53.69% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Michele Lau sold 2,725 shares of the company's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $990.00, for a total value of $2,697,750.00. Following the transaction, the executive vice president directly owned 3,247 shares in the company, valued at $3,214,530. This trade represents a 45.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 3,264 shares of company stock worth $3,205,315. 0.08% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On McKesson

Several large investors have recently made changes to their positions in MCK. Oslo Pensjonsforsikring AS bought a new stake in shares of McKesson during the first quarter worth approximately $365,000. Glenview Trust Co raised its stake in shares of McKesson by 15.4% during the first quarter. Glenview Trust Co now owns 3,274 shares of the company's stock worth $2,833,000 after buying an additional 437 shares during the last quarter. Cassaday & Co Wealth Management LLC bought a new stake in shares of McKesson during the first quarter worth approximately $64,000. Meeder Asset Management Inc. raised its stake in shares of McKesson by 20,237.5% during the first quarter. Meeder Asset Management Inc. now owns 8,135 shares of the company's stock worth $7,040,000 after buying an additional 8,095 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in shares of McKesson by 1.2% during the first quarter. Dimensional Fund Advisors LP now owns 356,397 shares of the company's stock worth $308,388,000 after buying an additional 4,311 shares during the last quarter. Institutional investors and hedge funds own 85.07% of the company's stock.

McKesson Stock Performance

Shares of NYSE MCK opened at $734.93 on Monday. The stock has a market cap of $90.02 billion, a PE ratio of 19.10, a PEG ratio of 1.06 and a beta of 0.35. The business has a fifty day moving average of $883.74 and a two-hundred day moving average of $859.93. McKesson has a 52-week low of $637.00 and a 52-week high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $11.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $11.56 by $0.13. The company had revenue of $96.30 billion during the quarter, compared to analysts' expectations of $101.35 billion. McKesson had a negative return on equity of 345.35% and a net margin of 1.18%.The business's revenue was up 6.0% on a year-over-year basis. During the same period last year, the business earned $10.12 earnings per share. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. Analysts predict that McKesson will post 44.25 earnings per share for the current year.

McKesson Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be paid a $0.82 dividend. The ex-dividend date is Monday, June 1st. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.4%. McKesson's dividend payout ratio (DPR) is 8.53%.

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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