McKesson (NYSE:MCK) Price Target Lowered to $812.00 at Wells Fargo & Company

Key Points

• Wells Fargo lowered McKesson’s price target from $925 to $812 while keeping an “equal weight” rating, implying about 11.6% upside from the prior close.
• Analyst sentiment remains broadly positive, with 14 Buy ratings and 3 Hold ratings; MarketBeat says the stock’s average target price is $963.20.
• McKesson reported solid quarterly earnings, beating EPS estimates at $11.69 per share, though revenue of $96.3 billion came in below expectations.

McKesson (NYSE:MCK - Get Free Report) had its price target decreased by equities research analysts at Wells Fargo & Company from $925.00 to $812.00 in a research note issued on Tuesday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Wells Fargo & Company's price objective would suggest a potential upside of 11.63% from the company's previous close.

A number of other brokerages have also recently commented on MCK. Bank of America decreased their target price on shares of McKesson from $1,040.00 to $1,000.00 and set a "buy" rating on the stock in a research report on Monday, April 6th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $875.00 price objective on shares of McKesson in a research report on Friday. Raymond James Financial set a $970.00 price target on shares of McKesson in a report on Thursday, March 5th. UBS Group raised their price objective on shares of McKesson from $1,000.00 to $1,050.00 and gave the stock a "buy" rating in a report on Friday. Finally, Mizuho upped their price target on McKesson from $880.00 to $885.00 and gave the stock a "neutral" rating in a research note on Thursday, February 5th. Fourteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $963.20.

McKesson Trading Up 0.3%

Shares of NYSE MCK opened at $727.37 on Tuesday. The business has a 50-day moving average of $874.21 and a 200-day moving average of $859.12. The firm has a market capitalization of $89.10 billion, a price-to-earnings ratio of 18.88, a PEG ratio of 1.06 and a beta of 0.35. McKesson has a 12 month low of $637.00 and a 12 month high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $11.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $11.56 by $0.13. The business had revenue of $96.30 billion during the quarter, compared to analyst estimates of $101.35 billion. McKesson had a net margin of 1.18% and a negative return on equity of 345.35%. McKesson's revenue for the quarter was up 6.0% on a year-over-year basis. During the same period in the previous year, the business posted $10.12 earnings per share. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. On average, analysts predict that McKesson will post 44.25 earnings per share for the current year.

Insiders Place Their Bets

In other news, EVP Michele Lau sold 2,725 shares of the firm's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $990.00, for a total transaction of $2,697,750.00. Following the sale, the executive vice president directly owned 3,247 shares in the company, valued at $3,214,530. This trade represents a 45.63% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Leann B. Smith sold 190 shares of the company's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $945.00, for a total transaction of $179,550.00. Following the completion of the transaction, the executive vice president directly owned 2,989 shares of the company's stock, valued at $2,824,605. This represents a 5.98% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 3,264 shares of company stock worth $3,205,315 over the last three months. 0.08% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On McKesson

Several hedge funds have recently modified their holdings of MCK. Brighton Jones LLC boosted its holdings in shares of McKesson by 46.3% during the 4th quarter. Brighton Jones LLC now owns 2,523 shares of the company's stock valued at $1,438,000 after purchasing an additional 798 shares during the last quarter. Caxton Associates LLP purchased a new position in McKesson during the 1st quarter valued at approximately $233,000. Sivia Capital Partners LLC increased its stake in McKesson by 77.9% in the 2nd quarter. Sivia Capital Partners LLC now owns 685 shares of the company's stock worth $502,000 after acquiring an additional 300 shares during the last quarter. Treasurer of the State of North Carolina raised its holdings in shares of McKesson by 0.9% during the 2nd quarter. Treasurer of the State of North Carolina now owns 58,623 shares of the company's stock worth $42,958,000 after acquiring an additional 508 shares in the last quarter. Finally, Osterweis Capital Management Inc. bought a new position in shares of McKesson during the 2nd quarter valued at approximately $166,000. 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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