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

McKesson Corporation (NYSE:MCK - Get Free Report)'s stock price reached a new 52-week high on Friday . The stock traded as high as $736.36 and last traded at $732.69, with a volume of 329071 shares changing hands. The stock had previously closed at $722.00.

Wall Street Analyst Weigh In

MCK has been the topic of several recent research reports. Wall Street Zen raised shares of McKesson from a "buy" rating to a "strong-buy" rating in a research note on Friday. Morgan Stanley raised their target price on shares of McKesson from $745.00 to $770.00 and gave the stock an "overweight" rating in a report on Wednesday, June 11th. Mizuho lifted their price target on shares of McKesson from $630.00 to $690.00 and gave the stock a "neutral" rating in a research report on Thursday, April 3rd. Wells Fargo & Company set a $766.00 price objective on McKesson and gave the company an "equal weight" rating in a research report on Tuesday, June 3rd. Finally, Cfra Research lowered McKesson from a "moderate buy" rating to a "hold" rating in a research note on Friday, April 4th. Three analysts have rated the stock with a hold rating, ten have given a buy rating and two have issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $696.42.

McKesson Stock Performance

The stock has a market cap of $90.83 billion, a price-to-earnings ratio of 28.11, a price-to-earnings-growth ratio of 1.44 and a beta of 0.49. The business's 50 day moving average is $711.19 and its 200 day moving average is $652.06.

McKesson (NYSE:MCK - Get Free Report) last issued its earnings results on Thursday, May 8th. The company reported $10.12 EPS for the quarter, topping the consensus estimate of $9.83 by $0.29. The business had revenue of $90.82 billion during 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 last year, the firm posted $6.18 earnings per share. Research analysts expect that McKesson Corporation will post 32.77 earnings per share for the current year.

McKesson Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, July 1st. Investors of record on Monday, June 2nd will be paid a $0.71 dividend. This represents a $2.84 annualized dividend and a yield of 0.39%. The ex-dividend date of this dividend is Monday, June 2nd. McKesson's dividend payout ratio is currently 10.99%.

Insiders Place Their Bets

In other McKesson news, EVP Leann B. Smith sold 341 shares of the company's stock in a transaction dated Wednesday, May 28th. The stock was sold at an average price of $717.91, for a total value of $244,807.31. Following the transaction, the executive vice president now directly owns 2,800 shares of the company's stock, valued at $2,010,148. This represents a 10.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Napoleon B. Rutledge, Jr. sold 543 shares of the firm'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 now directly owns 1,972 shares in the company, valued at approximately $1,432,677.72. The trade was a 21.59% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 33,117 shares of company stock worth $23,526,451. 0.11% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On McKesson

Several institutional investors and hedge funds have recently modified their holdings of the business. AG2R LA Mondiale Gestion D Actifs acquired a new stake in shares of McKesson in the first quarter worth about $3,387,000. Voya Investment Management LLC raised its stake in shares of McKesson by 92.3% in the 1st quarter. Voya Investment Management LLC now owns 650,851 shares of the company's stock valued at $437,760,000 after acquiring an additional 312,473 shares in the last quarter. 1248 Management LLC bought a new position in shares of McKesson in the 1st quarter valued at approximately $101,000. First Hawaiian Bank lifted its holdings in McKesson by 55.0% in the 1st quarter. First Hawaiian Bank now owns 5,580 shares of the company's stock worth $3,755,000 after purchasing an additional 1,980 shares during the last quarter. Finally, Modern Wealth Management LLC boosted its position in McKesson by 3.7% during the first quarter. Modern Wealth Management LLC now owns 810 shares of the company's stock worth $545,000 after purchasing an additional 29 shares during the period. Institutional investors and hedge funds own 85.07% of the company's stock.

About McKesson

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.