McKesson (NYSE:MCK) Earns Buy (B) Rating from Weiss Ratings

Key Points

• McKesson's stock has received a "buy (B)" rating from Weiss Ratings, indicating a strong confidence in the company's performance.
• Several analysts have upgraded their ratings on McKesson, with price targets ranging from $850 to $864, reflecting positive market sentiment.
• The company reported a revenue increase of 23.4% year-over-year despite missing EPS estimates, showcasing strong overall growth in sales.

McKesson (NYSE:MCK - Get Free Report)'s stock had its "buy (b)" rating reissued by investment analysts at Weiss Ratings in a note issued to investors on Wednesday,Weiss Ratings reports.

A number of other equities analysts have also recently issued reports on MCK. Wall Street Zen upgraded McKesson from a "hold" rating to a "buy" rating in a report on Sunday, September 28th. Bank of America boosted their price objective on McKesson from $800.00 to $850.00 and gave the company a "buy" rating in a report on Wednesday, September 24th. TD Cowen boosted their price objective on McKesson from $830.00 to $864.00 and gave the company a "buy" rating in a report on Wednesday, September 24th. Morgan Stanley boosted their price objective on McKesson from $810.00 to $857.00 and gave the company an "overweight" rating in a report on Wednesday, September 24th. Finally, Citigroup lifted their target price on McKesson from $820.00 to $860.00 and gave the company a "buy" rating in a research report on Wednesday, September 24th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $829.08.

McKesson Stock Performance

Shares of McKesson stock opened at $755.32 on Wednesday. The stock has a market cap of $93.95 billion, a price-to-earnings ratio of 30.12, a price-to-earnings-growth ratio of 1.35 and a beta of 0.52. The stock has a 50 day moving average price of $704.88 and a 200-day moving average price of $704.72. McKesson has a one year low of $492.39 and a one year high of $776.14.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $8.26 EPS for the quarter, missing analysts' consensus estimates 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 negative return on equity of 196.66% and a net margin of 0.84%.McKesson's revenue for the quarter was up 23.4% compared to the same quarter last year. During the same quarter last year, the firm posted $7.88 EPS. Sell-side analysts predict that McKesson will post 32.77 earnings per share for the current fiscal year.

Insider Buying and Selling at McKesson

In related news, CEO Brian S. Tyler sold 19,371 shares of the company's stock in a transaction dated Friday, July 11th. The stock was sold at an average price of $708.09, for a total transaction of $13,716,411.39. Following the transaction, the chief executive officer directly owned 27,872 shares of the company's stock, valued at $19,735,884.48. This represents a 41.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the company's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $663.67, for a total value of $218,347.43. Following the transaction, the chief accounting officer directly owned 657 shares in the company, valued at $436,031.19. This represents a 33.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 43,560 shares of company stock valued at $30,438,602. Corporate insiders own 0.08% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. Oppenheimer Asset Management Inc. increased its position in McKesson by 54.0% during the 1st quarter. Oppenheimer Asset Management Inc. now owns 4,541 shares of the company's stock valued at $3,056,000 after buying an additional 1,592 shares in the last quarter. Dynamic Advisor Solutions LLC increased its position in McKesson by 16.6% during the 1st quarter. Dynamic Advisor Solutions LLC now owns 778 shares of the company's stock valued at $524,000 after buying an additional 111 shares in the last quarter. Cambridge Investment Research Advisors Inc. increased its position in McKesson by 18.9% during the 1st 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 in the last quarter. Acadian Asset Management LLC increased its position in McKesson by 22.0% during the 1st quarter. Acadian Asset Management LLC now owns 378,926 shares of the company's stock valued at $254,979,000 after buying an additional 68,294 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC increased its position in McKesson by 4.3% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 183,258 shares of the company's stock valued at $123,332,000 after buying an additional 7,556 shares in the last quarter. 85.07% of the stock is owned by institutional investors and hedge funds.

McKesson Company Profile

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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