McKesson (NYSE:MCK) Reaches New 12-Month High - Should You Buy?

McKesson Corporation (NYSE:MCK - Get Free Report) shares hit a new 52-week high during trading on Tuesday . The company traded as high as $737.89 and last traded at $725.79, with a volume of 138503 shares. The stock had previously closed at $735.33.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on MCK. UBS Group upped their target price on McKesson from $708.00 to $805.00 and gave the stock a "buy" rating in a research note on Tuesday, April 29th. Cfra Research downgraded McKesson from a "moderate buy" rating to a "hold" rating in a research report on Friday, April 4th. Evercore ISI increased their price target on McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a research report on Wednesday. Wall Street Zen upgraded McKesson from a "buy" rating to a "strong-buy" rating in a research report on Saturday. Finally, Bank of America increased their price target on McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. Three equities research analysts have rated the stock with a hold rating, ten have assigned a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat, McKesson currently has an average rating of "Moderate Buy" and an average target price of $706.83.

McKesson Price Performance

The business has a fifty day simple moving average of $715.21 and a 200 day simple moving average of $659.83. The firm has a market cap of $90.97 billion, a price-to-earnings ratio of 28.15, a PEG ratio of 1.47 and a beta of 0.48.

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

McKesson Dividend Announcement

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

Insider Transactions at McKesson

In related news, CEO Brian S. Tyler sold 19,370 shares of the stock in a transaction that occurred on Friday, June 6th. The stock was sold at an average price of $705.93, for a total value of $13,673,864.10. Following the completion of the sale, the chief executive officer owned 51,243 shares of the company's stock, valued at approximately $36,173,970.99. This trade represents a 27.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Leann B. Smith sold 341 shares of the stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $717.91, for a total value of $244,807.31. Following the completion of the transaction, the executive vice president owned 2,800 shares of the company's stock, valued at $2,010,148. The trade was a 10.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 33,117 shares of company stock valued at $23,526,451. 0.08% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. T. Rowe Price Investment Management Inc. grew its position in McKesson by 8.5% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,847,385 shares of the company's stock worth $1,622,754,000 after acquiring an additional 222,496 shares during the period. Geode Capital Management LLC boosted its position in shares of McKesson by 0.4% during the fourth quarter. Geode Capital Management LLC now owns 2,663,303 shares of the company's stock worth $1,513,195,000 after buying an additional 10,015 shares during the period. Franklin Resources Inc. boosted its position in shares of McKesson by 4.6% during the fourth quarter. Franklin Resources Inc. now owns 2,620,948 shares of the company's stock worth $1,493,704,000 after buying an additional 114,396 shares during the period. GAMMA Investing LLC boosted its position in shares of McKesson by 75,632.7% during the first quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock worth $1,610,567,000 after buying an additional 2,389,992 shares during the period. Finally, Norges Bank purchased a new position in shares of McKesson during the fourth quarter worth $1,200,361,000. 85.07% of the stock is currently owned by hedge funds and other 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.