McKesson (NYSE:MCK) Price Target Raised to $850.00

Key Points

• Bank of America has raised its price target for McKesson from $800 to $850, indicating a potential upside of 14.95% from the current price.
• McKesson reported quarterly earnings of $8.26 per share, which missed consensus estimates by $0.07, but revenue rose by 23.4% from the previous year.
• Insider transactions revealed that CEO Brian S. Tyler sold over 19,000 shares, marking a 41% decrease in his position, amidst significant institutional investor activity.

McKesson (NYSE:MCK - Get Free Report) had its price objective increased by Bank of America from $800.00 to $850.00 in a report released on Wednesday,Benzinga reports. The firm currently has a "buy" rating on the stock. Bank of America's target price would suggest a potential upside of 14.95% from the company's current price.

Several other research firms also recently commented on MCK. Morgan Stanley restated an "overweight" rating and set a $810.00 price objective (up previously from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Wall Street Zen lowered shares of McKesson from a "buy" rating to a "hold" rating in a research note on Saturday. 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 report on Wednesday, August 13th. Evercore ISI boosted their target price 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. Finally, Cowen restated a "buy" rating on shares of McKesson in a report on Thursday, August 7th. One research 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 data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $730.10.

McKesson Trading Up 6.1%

NYSE:MCK opened at $739.48 on Wednesday. McKesson has a 12 month low of $464.42 and a 12 month high of $748.75. The stock has a market capitalization of $91.98 billion, a price-to-earnings ratio of 29.48, a PEG ratio of 1.39 and a beta of 0.51. The firm has a fifty day simple moving average of $695.33 and a two-hundred day simple moving average of $697.47.

McKesson (NYSE:MCK - Get Free Report) last released 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). McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.The company had revenue of $97.83 billion for the quarter, compared to the consensus estimate of $95.93 billion. During the same period last year, the company earned $7.88 EPS. McKesson's revenue for the quarter was up 23.4% compared to the same quarter last year. Equities analysts predict that McKesson will post 32.77 earnings per share for the current fiscal year.

Insider Transactions at McKesson

In related news, CEO Brian S. Tyler sold 19,371 shares of the firm's stock in a transaction that occurred 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 directly owned 27,872 shares of the company's stock, valued at approximately $19,735,884.48. This trade represents a 41.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of McKesson stock in a transaction that occurred 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 completion of the transaction, the chief accounting officer owned 657 shares of the company's stock, 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. Insiders have sold 43,560 shares of company stock valued at $30,438,602 in the last quarter. Company insiders own 0.08% of the company's stock.

Institutional Trading of McKesson

A number of hedge funds and other institutional investors have recently made changes to their positions in MCK. GAMMA Investing LLC boosted its stake in McKesson by 75,632.7% in the 1st quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock worth $1,610,567,000 after purchasing an additional 2,389,992 shares during the period. Norges Bank purchased a new stake in shares of McKesson in the second quarter worth about $1,346,661,000. Alliancebernstein L.P. boosted its position in shares of McKesson by 150.4% in the second quarter. Alliancebernstein L.P. now owns 2,268,015 shares of the company's stock valued at $1,661,956,000 after acquiring an additional 1,362,386 shares during the period. Nuveen LLC purchased a new position in McKesson during the first quarter valued at approximately $475,235,000. Finally, Arrowstreet Capital Limited Partnership increased its holdings in McKesson by 56.4% during the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 1,236,536 shares of the company's stock worth $906,109,000 after acquiring an additional 446,060 shares during the period. 85.07% of the stock is currently owned by institutional investors.

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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