McKesson (NYSE:MCK) Reaches New 1-Year High - Here's Why

Key Points

• McKesson Corporation's stock price reached a new 52-week high of $748.75, with analysts expressing varied ratings including a "buy" from Cowen and an "overweight" rating from Morgan Stanley.
• The company reported a quarterly earnings per share of $8.26, which was below analysts' expectations, but revenue rose to $97.83 billion, exceeding estimates by a significant margin.
• McKesson announced an increase in its quarterly dividend from $0.71 to $0.82, reflecting confidence in its ongoing financial performance.

McKesson Corporation (NYSE:MCK - Get Free Report)'s stock price reached a new 52-week high on Tuesday . The stock traded as high as $748.75 and last traded at $743.61, with a volume of 235499 shares. The stock had previously closed at $697.00.

Analyst Ratings Changes

A number of analysts have issued reports on the stock. Cowen reissued a "buy" rating on shares of McKesson in a report on Thursday, August 7th. Morgan Stanley reissued an "overweight" rating and issued a $810.00 price objective (up previously from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Wall Street Zen cut McKesson from a "buy" rating to a "hold" rating in a report on Saturday. Evercore ISI lifted their price objective on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Finally, Wells Fargo & Company lifted their price objective on McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a report on Wednesday, August 13th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $725.10.

McKesson Trading Up 6.1%

The firm has a market cap of $91.98 billion, a P/E ratio of 29.48, a price-to-earnings-growth ratio of 1.39 and a beta of 0.51. The business has a 50-day moving average of $694.76 and a two-hundred day moving average of $697.18.

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

McKesson Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd will be given a $0.82 dividend. This is a boost from McKesson's previous quarterly dividend of $0.71. The ex-dividend date is Tuesday, September 2nd. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.4%. McKesson's dividend payout ratio is presently 13.08%.

Insider Transactions at McKesson

In other McKesson news, CEO Brian S. Tyler sold 11,930 shares of the company's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $705.63, for a total value of $8,418,165.90. Following the sale, the chief executive officer owned 4,012 shares in the company, valued at approximately $2,830,987.56. The trade was a 74.83% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the business's 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 directly owned 657 shares in the company, 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 sold a total of 43,560 shares of company stock worth $30,438,602 in the last quarter. Corporate insiders own 0.08% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Capital A Wealth Management LLC acquired a new position in McKesson during the 4th quarter worth approximately $26,000. Solstein Capital LLC grew its holdings in McKesson by 171.4% during the second quarter. Solstein Capital LLC now owns 38 shares of the company's stock worth $28,000 after buying an additional 24 shares in the last quarter. Bank of Jackson Hole Trust raised its position in McKesson by 64.3% in 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 purchased a new stake in McKesson in the 2nd quarter valued at $29,000. Finally, CBIZ Investment Advisory Services LLC raised its position in McKesson by 1,366.7% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after buying an additional 41 shares during the last quarter. 85.07% of the stock is owned by institutional investors and hedge funds.

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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