McKesson Corporation (NYSE:MCK) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• McKesson has a “Moderate Buy” consensus rating from 17 analysts, with 14 buys and three holds. The average 12-month price target is $977, implying potential upside from the reported $869.73 share price.
• The company exceeded quarterly expectations, reporting $9.93 in adjusted EPS versus the $9.56 consensus and revenue of $105.38 billion, up 7.7% year over year. McKesson maintained fiscal 2027 EPS guidance of $44.20–$45.00.
• McKesson raised its quarterly dividend to $0.94 per share from $0.82, while insiders sold 29,049 shares worth approximately $22.5 million during the last quarter.

Shares of McKesson Corporation (NYSE:MCK - Get Free Report) have received a consensus rating of "Moderate Buy" from the seventeen ratings firms that are presently covering the firm, Marketbeat.com reports. Three investment analysts have rated the stock with a hold recommendation and fourteen have issued a buy recommendation on the company. The average 12-month price objective among brokerages that have updated their coverage on the stock in the last year is $977.00.

A number of equities research analysts have weighed in on the stock. Wells Fargo & Company boosted their target price on shares of McKesson from $812.00 to $933.00 and gave the stock an "equal weight" rating in a report on Tuesday, August 11th. Robert W. Baird set a $1,015.00 price target on shares of McKesson in a research note on Thursday, August 6th. Evercore reissued an "outperform" rating on shares of McKesson in a research note on Thursday, August 6th. UBS Group increased their price objective on McKesson from $1,050.00 to $1,080.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Finally, Weiss Ratings lowered McKesson from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, July 7th.

Insider Buying and Selling

In related news, EVP Michele Lau sold 3,550 shares of the company's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $761.09, for a total value of $2,701,869.50. Following the sale, the executive vice president directly owned 3,247 shares in the company, valued at $2,471,259.23. This represents a 52.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thomas L. Rodgers sold 699 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $735.27, for a total value of $513,953.73. Following the completion of the sale, the executive vice president owned 2,268 shares in the company, valued at $1,667,592.36. The trade was a 23.56% 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. In the last quarter, insiders have sold 29,049 shares of company stock valued at $22,530,626. Corporate insiders own 0.06% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Meiji Yasuda Asset Management Co Ltd. boosted its position in McKesson by 0.5% during the 4th quarter. Meiji Yasuda Asset Management Co Ltd. now owns 2,262 shares of the company's stock worth $1,855,000 after purchasing an additional 11 shares during the period. Investment Research Partners LLC raised its position in McKesson by 0.7% in the fourth quarter. Investment Research Partners LLC now owns 1,624 shares of the company's stock valued at $1,332,000 after purchasing an additional 11 shares during the period. IHT Wealth Management LLC raised its position in McKesson by 0.9% in the fourth quarter. IHT Wealth Management LLC now owns 1,196 shares of the company's stock valued at $981,000 after purchasing an additional 11 shares during the period. LRI Investments LLC lifted its stake in shares of McKesson by 12.1% during the fourth quarter. LRI Investments LLC now owns 111 shares of the company's stock worth $91,000 after purchasing an additional 12 shares in the last quarter. Finally, Macroview Investment Management LLC lifted its stake in shares of McKesson by 3.9% during the fourth quarter. Macroview Investment Management LLC now owns 322 shares of the company's stock worth $264,000 after purchasing an additional 12 shares in the last quarter. Institutional investors and hedge funds own 85.07% of the company's stock.

McKesson Trading Up 1.1%

McKesson stock opened at $869.73 on Wednesday. The company has a market capitalization of $101.40 billion, a PE ratio of 23.27, a P/E/G ratio of 1.71 and a beta of 0.30. McKesson has a 12 month low of $667.50 and a 12 month high of $999.00. The stock has a 50-day moving average price of $817.06 and a two-hundred day moving average price of $843.43.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 EPS for the quarter, beating analysts' consensus estimates of $9.56 by $0.37. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%.The firm had revenue of $105.38 billion for the quarter, compared to analyst estimates of $103.88 billion. During the same period last year, the firm posted $8.26 earnings per share. The business's revenue for the quarter was up 7.7% on a year-over-year basis. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, analysts predict that McKesson will post 44.65 earnings per share for the current fiscal year.

McKesson Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be given a $0.94 dividend. This is a boost from McKesson's previous quarterly dividend of $0.82. The ex-dividend date is Tuesday, September 1st. This represents a $3.76 dividend on an annualized basis and a dividend yield of 0.4%. McKesson's dividend payout ratio is presently 8.78%.

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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