McKesson (NYSE:MCK) Reaches New 1-Year High - Time to Buy?

Key Points

• McKesson's stock reached a new 52-week high of $770.24 during trading, with its last traded price at $765.63.
• Analysts have raised their price targets for McKesson, with Morgan Stanley increasing theirs to $857.00 and Citigroup to $860.00, reflecting strong market confidence.
• The company recently announced a quarterly dividend increase to $0.82, up from the previous $0.71, indicating financial health and commitment to shareholders.

McKesson Corporation (NYSE:MCK - Get Free Report) shares reached a new 52-week high during trading on Tuesday . The stock traded as high as $770.24 and last traded at $765.63, with a volume of 80285 shares trading hands. The stock had previously closed at $761.82.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on MCK. Morgan Stanley lifted their price objective on McKesson from $810.00 to $857.00 and gave the company an "overweight" rating in a research note on Wednesday, September 24th. Citigroup lifted their price objective on McKesson from $820.00 to $860.00 and gave the company a "buy" rating in a research note on Wednesday, September 24th. Bank of America lifted their price objective on McKesson from $800.00 to $850.00 and gave the company a "buy" rating in a research note on Wednesday, September 24th. Leerink Partners lifted their price objective on McKesson from $785.00 to $850.00 and gave the company an "outperform" rating in a research note on Wednesday, September 24th. Finally, TD Cowen lifted their price objective on McKesson from $830.00 to $864.00 and gave the company a "buy" rating in a research note on Wednesday, September 24th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, McKesson presently has a consensus rating of "Moderate Buy" and a consensus target price of $829.08.

McKesson Trading Up 1.3%

The firm has a 50-day moving average of $698.81 and a 200 day moving average of $700.77. The stock has a market capitalization of $95.98 billion, a price-to-earnings ratio of 30.77, a price-to-earnings-growth ratio of 1.36 and a beta of 0.51.

McKesson (NYSE:MCK - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The company reported $8.26 EPS for the quarter, missing the consensus estimate 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 analyst estimates of $95.93 billion. During the same period last year, the firm posted $7.88 earnings per share. The business's revenue was up 23.4% on a year-over-year basis. As a group, research analysts forecast that McKesson Corporation will post 32.77 EPS for the current year.

McKesson Increases Dividend

The firm also recently announced 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 represents a $3.28 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Tuesday, September 2nd. This is a positive change from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio is currently 13.08%.

Insider Buying and Selling

In other McKesson news, CEO Brian S. Tyler sold 19,371 shares of the company's stock in a transaction that occurred on Friday, July 11th. The stock was sold at an average price of $708.09, for a total value of $13,716,411.39. Following the transaction, the chief executive officer directly owned 27,872 shares of the company's stock, valued at $19,735,884.48. This represents a 41.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the company's stock in a transaction that occurred on 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 approximately $436,031.19. The trade was a 33.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 43,560 shares of company stock worth $30,438,602. 0.08% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On McKesson

Several institutional investors and hedge funds have recently made changes to their positions in MCK. MassMutual Private Wealth & Trust FSB boosted its stake in McKesson by 1.6% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 863 shares of the company's stock worth $632,000 after purchasing an additional 14 shares in the last quarter. Cardinal Point Capital Management ULC boosted its stake in McKesson by 2.2% in the second quarter. Cardinal Point Capital Management ULC now owns 645 shares of the company's stock worth $473,000 after purchasing an additional 14 shares in the last quarter. CVA Family Office LLC boosted its stake in McKesson by 6.0% in the first quarter. CVA Family Office LLC now owns 265 shares of the company's stock worth $178,000 after purchasing an additional 15 shares in the last quarter. Palisade Asset Management LLC boosted its stake in McKesson by 2.1% in the first quarter. Palisade Asset Management LLC now owns 715 shares of the company's stock worth $481,000 after purchasing an additional 15 shares in the last quarter. Finally, SteelPeak Wealth LLC boosted its stake in McKesson by 0.5% in the first quarter. SteelPeak Wealth LLC now owns 2,771 shares of the company's stock worth $1,867,000 after purchasing an additional 15 shares in 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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