McKesson (NYSE:MCK) Given New $933.00 Price Target at Wells Fargo & Company

Key Points

• Wells Fargo raised McKesson’s price target to $933 from $812 while maintaining an “equal weight” rating, implying 6.26% upside. Analysts overall have a “Moderate Buy” consensus and an average target of $977.
• McKesson reported quarterly EPS of $9.93, exceeding estimates of $9.56, while revenue reached $105.38 billion, up 7.7% year over year and above expectations.
• The stock opened at $878.01 and has traded between $637 and $999 over the past year. Insiders sold approximately $22.3 million of shares in the last quarter, while institutional investors own 85.07% of the company.

McKesson (NYSE:MCK - Get Free Report) had its price objective raised by equities researchers at Wells Fargo & Company from $812.00 to $933.00 in a report issued on Tuesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Wells Fargo & Company's price target indicates a potential upside of 6.26% from the company's current price.

A number of other brokerages have also issued reports on MCK. Citigroup increased their price target on McKesson from $945.00 to $1,000.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. JPMorgan Chase & Co. decreased their price target on McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. TD Cowen increased their target price on McKesson from $989.00 to $1,006.00 and gave the stock a "buy" rating in a research note on Thursday. Morgan Stanley reaffirmed an "overweight" rating on shares of McKesson in a research report on Friday. Finally, UBS Group boosted their price objective on shares of McKesson from $1,050.00 to $1,080.00 and gave the stock a "buy" rating in a research note on Thursday. Fourteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $977.00.

McKesson Trading Up 1.0%

Shares of MCK opened at $878.01 on Tuesday. The firm has a market cap of $102.37 billion, a PE ratio of 23.50, a P/E/G ratio of 1.71 and a beta of 0.30. McKesson has a 1-year low of $637.00 and a 1-year high of $999.00. The firm has a fifty day simple moving average of $803.51 and a two-hundred day simple moving average of $841.38.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $9.56 by $0.37. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%.The business had revenue of $105.38 billion for the quarter, compared to analysts' expectations 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, research analysts forecast that McKesson will post 44.59 EPS for the current fiscal year.

Insider Transactions at McKesson

In other McKesson news, EVP Thomas L. Rodgers sold 2,388 shares of McKesson stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $761.09, for a total transaction of $1,817,482.92. Following the completion of the sale, the executive vice president directly owned 3,090 shares in the company, valued at $2,351,768.10. This trade represents a 43.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the firm's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $764.00, for a total value of $101,612.00. Following the transaction, the chief accounting officer owned 632 shares of the company's stock, valued at $482,848. This trade represents a 17.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 28,748 shares of company stock worth $22,262,035. Company insiders own 0.06% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in MCK. University of Texas Texas AM Investment Management Co. acquired a new stake in McKesson in the 4th quarter valued at about $25,000. Swiss RE Ltd. purchased a new stake in McKesson in the 4th quarter valued at $26,000. State of Wyoming purchased a new stake in shares of McKesson in the second quarter valued at about $29,000. Kingdom Financial Group LLC. acquired a new stake in McKesson during the 4th quarter worth approximately $33,000. Finally, Birchwood Financial Partners Inc. acquired a new stake in shares of McKesson during the fourth quarter worth $33,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

About McKesson

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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