McKesson (NYSE:MCK) Downgraded to Hold Rating by Wall Street Zen

Key Points

• McKesson has been downgraded from a "buy" rating to a "hold" rating by analysts at Wall Street Zen.
• The company's recent earnings report showed earnings per share of $8.26, which missed analyst estimates and marked a year-over-year increase in revenue of 23.4%.
• CEO Brian S. Tyler has sold a significant amount of McKesson shares, decreasing his ownership by 41.00% after selling shares valued at over $13 million.

McKesson (NYSE:MCK - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday.

A number of other analysts also recently weighed in on MCK. Cowen reaffirmed a "buy" rating on shares of McKesson in a report on Thursday, August 7th. Evercore ISI upped their price objective on shares of McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 9th. Morgan Stanley reiterated an "overweight" rating and set a $810.00 price objective (up from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. Finally, Wells Fargo & Company upped their price objective on shares of McKesson from $766.00 to $772.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 13th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $725.10.

McKesson Trading Up 1.2%

NYSE MCK traded up $7.94 during trading on Friday, reaching $698.07. The company's stock had a trading volume of 1,445,591 shares, compared to its average volume of 666,644. The firm has a market capitalization of $86.83 billion, a price-to-earnings ratio of 27.83, a price-to-earnings-growth ratio of 1.39 and a beta of 0.51. McKesson has a 12 month low of $464.42 and a 12 month high of $737.89. The firm has a 50 day moving average price of $695.15 and a 200 day moving average price of $696.44.

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

Insider Transactions at McKesson

In other news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of McKesson 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 completion of the transaction, the chief accounting officer owned 657 shares in the company, valued at $436,031.19. This trade represents a 33.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Brian S. Tyler sold 11,930 shares of McKesson stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the completion of the transaction, the chief executive officer owned 4,012 shares of the company's stock, valued at $2,830,987.56. The trade was a 74.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 43,560 shares of company stock valued at $30,438,602 in the last 90 days. 0.08% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On McKesson

Hedge funds have recently bought and sold shares of the company. Capital A Wealth Management LLC purchased a new position in McKesson during the fourth quarter valued at approximately $26,000. Solstein Capital LLC raised its holdings in McKesson by 171.4% during the 2nd quarter. Solstein Capital LLC now owns 38 shares of the company's stock valued at $28,000 after buying an additional 24 shares during the last quarter. Bank of Jackson Hole Trust raised its holdings in McKesson by 64.3% during the 1st quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock valued at $29,000 after buying an additional 18 shares during the last quarter. State of Wyoming bought a new stake in McKesson during the 2nd quarter valued at $29,000. Finally, CBIZ Investment Advisory Services LLC increased its position in McKesson by 1,366.7% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after purchasing an additional 41 shares during the period. Hedge funds and other institutional investors own 85.07% of the company's stock.

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.