McKesson Corporation (NYSE:MCK) Receives Consensus Recommendation of "Moderate Buy" from Brokerages

Key Points

• McKesson Corporation has received a consensus recommendation of "Moderate Buy" from fifteen brokerages, with an average 12-month price target of $829.08.
• CEO Brian S. Tyler sold 19,371 shares at an average price of $708.09, leading to a 41% decrease in his ownership of the stock.
• The company recently announced a dividend increase from $0.71 to $0.82, scheduled for payment on October 1st.

Shares of McKesson Corporation (NYSE:MCK - Get Free Report) have earned an average recommendation of "Moderate Buy" from the fifteen research firms that are presently covering the company, Marketbeat.com reports. Three research analysts have rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating on the company. The average 12-month price target among brokerages that have issued a report on the stock in the last year is $829.0833.

A number of equities research analysts recently weighed in on the stock. Citigroup raised their price target on shares of McKesson from $820.00 to $860.00 and gave the company a "buy" rating in a report on Wednesday. UBS Group increased their price target on McKesson from $820.00 to $860.00 and gave the company a "buy" rating in a report on Wednesday. Bank of America lifted their price objective on McKesson from $800.00 to $850.00 and gave the stock a "buy" rating in a report on Wednesday. Leerink Partners raised their price target on shares of McKesson from $785.00 to $850.00 and gave the stock an "outperform" rating in a research report on Wednesday. Finally, Morgan Stanley upped their price target on shares of McKesson from $810.00 to $857.00 and gave the company an "overweight" rating in a report on Wednesday.

Insider Buying and Selling

In other McKesson news, CEO Brian S. Tyler sold 19,371 shares of McKesson stock in a transaction on Friday, July 11th. The shares were sold at an average price of $708.09, for a total value of $13,716,411.39. Following the completion of the transaction, the chief executive officer owned 27,872 shares of the company's stock, valued at $19,735,884.48. The trade was a 41.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the business'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 of the company's stock, valued at approximately $436,031.19. The trade was a 33.37% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 43,560 shares of company stock worth $30,438,602. 0.08% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On McKesson

Institutional investors and hedge funds have recently bought and sold shares of the business. Oppenheimer Asset Management Inc. raised its position in shares of McKesson by 54.0% during the 1st quarter. Oppenheimer Asset Management Inc. now owns 4,541 shares of the company's stock worth $3,056,000 after purchasing an additional 1,592 shares during the period. Dynamic Advisor Solutions LLC increased its position in McKesson by 16.6% in the first quarter. Dynamic Advisor Solutions LLC now owns 778 shares of the company's stock worth $524,000 after buying an additional 111 shares during the period. Cambridge Investment Research Advisors Inc. lifted its stake in McKesson by 18.9% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 23,033 shares of the company's stock valued at $15,501,000 after buying an additional 3,659 shares during the last quarter. Acadian Asset Management LLC boosted its holdings in shares of McKesson by 22.0% during the first quarter. Acadian Asset Management LLC now owns 378,926 shares of the company's stock valued at $254,979,000 after acquiring an additional 68,294 shares during the period. Finally, Wealth Enhancement Advisory Services LLC grew its position in shares of McKesson by 4.3% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 183,258 shares of the company's stock worth $123,332,000 after acquiring an additional 7,556 shares during the last quarter. Institutional investors and hedge funds own 85.07% of the company's stock.

McKesson Trading Up 3.3%

NYSE:MCK opened at $760.82 on Friday. McKesson has a twelve month low of $479.15 and a twelve month high of $770.00. The firm has a market capitalization of $94.63 billion, a price-to-earnings ratio of 30.34, a PEG ratio of 1.36 and a beta of 0.51. The firm's fifty day simple moving average is $697.79 and its 200 day simple moving average is $699.59.

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

McKesson Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be issued a $0.82 dividend. This is an increase from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Tuesday, September 2nd. McKesson's dividend payout ratio is presently 13.08%.

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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