McKesson (NYSE:MCK) Raised to Strong-Buy at Wall Street Zen

Wall Street Zen upgraded shares of McKesson (NYSE:MCK - Free Report) from a buy rating to a strong-buy rating in a research note issued to investors on Saturday morning.

MCK has been the topic of several other reports. Mizuho increased their target price on shares of McKesson from $630.00 to $690.00 and gave the stock a "neutral" rating in a report on Thursday, April 3rd. Cfra Research cut shares of McKesson from a "moderate buy" rating to a "hold" rating in a research report on Friday, April 4th. Bank of America increased their price objective on shares of McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a research note on Friday, May 9th. Morgan Stanley upped their target price on McKesson from $745.00 to $770.00 and gave the stock an "overweight" rating in a report on Wednesday, June 11th. Finally, UBS Group increased their target price on McKesson from $708.00 to $805.00 and gave the company a "buy" rating in a research report on Tuesday, April 29th. Three equities research analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat.com, McKesson presently has an average rating of "Moderate Buy" and an average target price of $696.42.

McKesson Price Performance

MCK stock traded up $16.11 during mid-day trading on Friday, reaching $735.41. The company had a trading volume of 999,234 shares, compared to its average volume of 927,042. The company has a market capitalization of $92.01 billion, a PE ratio of 28.47, a price-to-earnings-growth ratio of 1.44 and a beta of 0.48. The firm has a 50 day moving average of $714.88 and a 200 day moving average of $659.39. McKesson has a 12 month low of $464.42 and a 12 month high of $736.96.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The company reported $10.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $9.83 by $0.29. The company had revenue of $90.82 billion for the quarter, compared to analysts' expectations of $94 billion. McKesson had a negative return on equity of 201.12% and a net margin of 0.92%. McKesson's revenue was up 18.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $6.18 earnings per share. Analysts anticipate that McKesson will post 32.77 EPS for the current year.

McKesson Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 1st. Shareholders of record on Monday, June 2nd were issued a $0.71 dividend. This represents a $2.84 annualized dividend and a yield of 0.39%. The ex-dividend date of this dividend was Monday, June 2nd. McKesson's dividend payout ratio is presently 10.99%.

Insider Buying and Selling at McKesson

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 543 shares of the company's stock in a transaction that occurred on Monday, May 19th. The shares were sold at an average price of $726.51, for a total transaction of $394,494.93. Following the transaction, the chief accounting officer owned 1,972 shares in the company, valued at approximately $1,432,677.72. This represents a 21.59% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Brian S. Tyler sold 19,370 shares of McKesson stock in a transaction on Friday, June 6th. The stock was sold at an average price of $705.93, for a total transaction of $13,673,864.10. Following the sale, the chief executive officer owned 51,243 shares of the company's stock, valued at $36,173,970.99. The trade was a 27.43% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 33,117 shares of company stock valued at $23,526,451. Insiders own 0.08% of the company's stock.

Hedge Funds Weigh In On McKesson

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MCK. Capital A Wealth Management LLC purchased a new position in shares of McKesson in the fourth quarter worth about $26,000. Millstone Evans Group LLC purchased a new position in McKesson during the 4th quarter worth approximately $28,000. Bank of Jackson Hole Trust lifted its stake 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 acquiring an additional 18 shares during the period. CBIZ Investment Advisory Services LLC lifted its stake 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 acquiring an additional 41 shares during the period. Finally, Atala Financial Inc acquired a new stake in shares of McKesson in the fourth quarter worth $34,000. 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.