Royal Bank Of Canada Upgrades McKesson (NYSE:MCK) to Hold

Key Points

• Royal Bank of Canada upgraded McKesson to “Hold,” while the broader analyst consensus remains “Moderate Buy,” with 14 Buy ratings and four Holds and an average price target of $973.44.
• McKesson exceeded quarterly expectations, reporting $9.93 in EPS versus a $9.56 consensus and $105.38 billion in revenue, up 7.7% year over year.
• The stock opened at $853.53, below its 52-week high of $999.00. Insiders have sold about $22.5 million in shares over the past 90 days, while institutional investors own 85.07% of the company.

McKesson (NYSE:MCK - Get Free Report) was upgraded by stock analysts at Royal Bank Of Canada to a "hold" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

MCK has been the subject of several other research reports. Barclays raised their target price on McKesson from $925.00 to $1,000.00 and gave the stock an "overweight" rating in a research note on Wednesday. UBS Group upped their price target on McKesson from $1,050.00 to $1,080.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Robert W. Baird set a $1,015.00 price target on shares of McKesson in a report on Thursday, August 6th. TD Cowen raised their price objective on shares of McKesson from $989.00 to $1,006.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Finally, Evercore reaffirmed an "outperform" rating on shares of McKesson in a research note on Thursday, August 6th. Fourteen equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $973.44.

McKesson Stock Performance

Shares of McKesson stock opened at $853.53 on Wednesday. The stock's 50-day simple moving average is $818.34 and its 200 day simple moving average is $843.66. McKesson has a 52-week low of $673.38 and a 52-week high of $999.00. The stock has a market capitalization of $99.51 billion, a P/E ratio of 22.84, a P/E/G ratio of 1.71 and a beta of 0.30.

McKesson (NYSE:MCK - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $9.56 by $0.37. The firm had revenue of $105.38 billion for the quarter, compared to the consensus estimate of $103.88 billion. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%.The business's quarterly revenue was up 7.7% on a year-over-year basis. During the same quarter in the prior year, the business posted $8.26 earnings per share. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. Equities research analysts forecast that McKesson will post 44.65 EPS for the current fiscal year.

Insider Activity

In related news, EVP Thomas L. Rodgers sold 699 shares of the firm's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $735.27, for a total value of $513,953.73. Following the completion of the sale, the executive vice president owned 2,268 shares of the company's stock, valued at $1,667,592.36. This trade represents a 23.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michele Lau sold 3,550 shares of the business's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $761.09, for a total transaction of $2,701,869.50. Following the transaction, the executive vice president owned 3,247 shares in the company, valued at $2,471,259.23. This represents a 52.23% 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. In the last 90 days, insiders have sold 29,049 shares of company stock valued at $22,530,626. Corporate insiders own 0.06% of the company's stock.

Institutional Trading of McKesson

Institutional investors have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in shares of McKesson in the 2nd quarter worth $8,156,743,000. Norges Bank bought a new stake in shares of McKesson during the 4th quarter valued at $1,651,137,000. Bank of America Corp DE purchased a new position in McKesson in the 2nd quarter worth approximately $998,896,000. Legal & General Group Plc bought a new position in shares of McKesson during the 2nd quarter valued at about $656,566,000. Finally, The Manufacturers Life Insurance Company purchased a new position in shares of McKesson in the second quarter valued at $651,462,000. 85.07% of the stock is owned by hedge funds and other institutional investors.

About McKesson

McKesson Corporation NYSE: MCK is a global healthcare services and distribution company that supplies pharmaceuticals, medical-surgical products and health care technology solutions. Founded in 1833 and headquartered in Irving, Texas, McKesson operates across the drug distribution and healthcare services value chain, connecting manufacturers, pharmacies, hospitals and health systems to help manage the movement of medicines and clinical supplies.

The company's core activities include pharmaceutical wholesale distribution and logistics, specialty pharmacy services, and the provision of medical-surgical supplies to acute and non-acute care providers.

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