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

Key Points

• McKesson shares reached a new 52-week high of $1,003.21, supported by strong upward momentum and a market capitalization of approximately $116.3 billion.
• Analyst sentiment remains positive: 15 analysts rate the stock a Buy and four rate it a Hold, giving McKesson a “Moderate Buy” consensus and an average price target of $983.29.
• McKesson exceeded quarterly earnings and revenue expectations, with EPS of $9.93 and revenue of $105.38 billion, while also raising its quarterly dividend from $0.82 to $0.94 per share.

McKesson Corporation (NYSE:MCK - Get Free Report) shares reached a new 52-week high during mid-day trading on Thursday. The company traded as high as $1,003.21 and last traded at $996.4360, with a volume of 40,722 shares trading hands. The stock had previously closed at $976.57.

Analysts Set New Price Targets

MCK has been the topic of a number of recent research reports. Argus boosted their target price on McKesson from $850.00 to $970.00 and gave the company a "buy" rating in a research note on Thursday, September 3rd. Weiss Ratings raised McKesson from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, September 4th. Leerink Partners raised their price target on McKesson from $1,030.00 to $1,070.00 and gave the stock an "outperform" rating in a research note on Wednesday, October 7th. Citigroup lifted their price target on McKesson from $945.00 to $1,000.00 and gave the company a "buy" rating in a report on Friday, July 24th. Finally, Evercore reissued an "outperform" rating and issued a $950.00 price target (down from $1,000.00) on shares of McKesson in a research note on Thursday, August 6th. Fifteen analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $983.29.

McKesson Stock Performance

The stock's 50-day simple moving average is $892.49 and its two-hundred day simple moving average is $835.35. The stock has a market cap of $116.30 billion, a price-to-earnings ratio of 26.65, a price-to-earnings-growth ratio of 2.02 and a beta of 0.30.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $9.56 by $0.37. The business had revenue of $105.38 billion for the quarter, compared to analyst estimates of $103.88 billion. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. McKesson's revenue was up 7.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $8.26 earnings per share. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, research analysts predict that McKesson Corporation will post 44.73 earnings per share for the current year.

McKesson Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st were given a dividend of $0.94 per share. This is an increase from McKesson's previous quarterly dividend of $0.82. This represents a $3.76 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend was Tuesday, September 1st. McKesson's dividend payout ratio (DPR) is currently 10.06%.

Insider Activity

In related news, Director Bradley Lerman sold 301 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $892.33, for a total value of $268,591.33. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO B Jr sold 111 shares of McKesson 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 in the company, valued at approximately $464,445.45. This trade represents a 17.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.06% of the stock is currently owned by company insiders.

Institutional Trading of McKesson

A number of hedge funds have recently modified their holdings of the company. Nvwm LLC boosted its stake in shares of McKesson by 933.3% during the 3rd quarter. Nvwm LLC now owns 31 shares of the company's stock worth $26,000 after acquiring an additional 28 shares during the period. Delos Wealth Advisors LLC acquired a new position in shares of McKesson during the 2nd quarter worth approximately $27,000. Clearstead Trust LLC acquired a new position in shares of McKesson during the 2nd quarter worth approximately $37,000. GK Wealth Management LLC bought a new stake in McKesson in the 3rd quarter valued at $38,000. Finally, Bell Investment Advisors Inc bought a new stake in McKesson in the 2nd quarter valued at $39,000. Institutional investors own 85.07% of the company's stock.

McKesson Company Profile

McKesson Corporation NYSE: MCK is a healthcare services and information technology company that distributes pharmaceuticals, specialty drugs, medical supplies and other healthcare products. The company serves pharmacies, hospitals, health systems, physician practices, biopharma manufacturers and other healthcare providers, helping move products from manufacturers to patients and care settings.

McKesson's principal operations include pharmaceutical distribution, medical-surgical supply distribution and technology-enabled services for pharmacies and providers.

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