McKesson (NYSE:MCK) Reaches New 12-Month High - What's Next?

Key Points

• McKesson hit a new 52-week high, trading around $1,038 after a prior close of $999.62.
• Analysts maintain a “Moderate Buy” consensus (15 Buy, 4 Hold); the average price target is $997.12, while Leerink Partners raised its target to $1,070.
• Latest quarterly results beat estimates: earnings were $9.93 per share versus $9.56 expected, and revenue of $105.38 billion rose 7.7% year over year.

McKesson Corporation (NYSE:MCK - Get Free Report) reached a new 52-week high on Wednesday. The company traded as high as $1,034.11 and last traded at $1,038.0770, with a volume of 236,301 shares. The stock had previously closed at $999.62.

Analyst Ratings Changes

Several analysts have recently issued reports on MCK shares. Leerink Partners upped their price objective on McKesson from $1,030.00 to $1,070.00 and gave the company an "outperform" rating in a research report on Wednesday, October 7th. Argus lifted their price objective on McKesson from $850.00 to $970.00 and gave the stock a "buy" rating in a research report on Thursday, September 3rd. Mizuho boosted their target price on shares of McKesson from $905.00 to $1,020.00 and gave the company a "neutral" rating in a research note on Tuesday, October 20th. Barclays upped their target price on shares of McKesson from $925.00 to $1,000.00 and gave the company an "overweight" rating in a report on Wednesday, August 19th. Finally, Morgan Stanley set a $977.00 target price on shares of McKesson in a report on Tuesday, October 6th. Fifteen equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $997.12.

McKesson Stock Performance

The company has a fifty day simple moving average of $927.87 and a two-hundred day simple moving average of $864.61. The company has a market capitalization of $124.67 billion, a price-to-earnings ratio of 28.61, a P/E/G ratio of 1.99 and a beta of 0.27.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, topping analysts' consensus estimates of $9.56 by $0.37. The company had revenue of $105.38 billion for the quarter, compared to analyst estimates of $103.88 billion. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%. The business's revenue for the quarter was up 7.7% compared to the same quarter last year. During the same quarter in the prior year, the company posted $8.26 EPS. As a group, analysts expect that McKesson Corporation will post 44.71 EPS for the current year.

McKesson Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, January 4th. Investors of record on Tuesday, December 1st will be paid a $0.94 dividend. This represents a $3.76 annualized dividend and a yield of 0.4%. The ex-dividend date is Tuesday, December 1st. McKesson's dividend payout ratio is presently 10.06%.

Insider Buying and Selling

In other McKesson news, CAO B Jr sold 111 shares of the firm's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $891.45, for a total value of $98,950.95. Following the sale, the chief accounting officer directly owned 521 shares of the company's stock, valued at approximately $464,445.45. This trade represents a 17.56% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Francisco Fraga sold 800 shares of McKesson stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $995.80, for a total value of $796,640.00. Following the completion of the sale, the executive vice president owned 5,423 shares of the company's stock, valued at $5,400,223.40. This trade represents a 12.86% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 1,212 shares of company stock worth $1,164,182. 0.06% of the stock is owned by company insiders.

Institutional Investors Weigh In On McKesson

A number of institutional investors have recently bought and sold shares of the stock. Secure Asset Management LLC raised its stake in McKesson by 484.8% during the 2nd quarter. Secure Asset Management LLC now owns 2,123 shares of the company's stock valued at $1,604,000 after purchasing an additional 1,760 shares during the last quarter. Royal London Asset Management Ltd. boosted its holdings in McKesson by 1.1% in the 2nd quarter. Royal London Asset Management Ltd. now owns 112,241 shares of the company's stock valued at $84,809,000 after purchasing an additional 1,216 shares during the period. BayBridge Capital Group LLC grew its position in McKesson by 268.0% in the 2nd quarter. BayBridge Capital Group LLC now owns 1,943 shares of the company's stock worth $1,468,000 after purchasing an additional 1,415 shares during the last quarter. Benchmark Investment Advisors LLC acquired a new stake in McKesson in the 2nd quarter worth $441,000. Finally, Summit Global Investments acquired a new stake in McKesson in the 2nd quarter worth $1,159,000. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

About McKesson

McKesson Corporation is a healthcare services and information technology company that distributes pharmaceuticals and medical products to pharmacies, hospitals, health systems, physicians and other healthcare providers. The company also provides technology, data and business solutions designed to support prescription management, pharmacy operations and patient care.

McKesson's principal activities include pharmaceutical distribution, medical-surgical supply distribution, specialty pharmaceutical services and oncology care support.

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