TD Cowen Lowers McKesson (NYSE:MCK) Price Target to $989.00

Key Points

• TD Cowen cut its price target on McKesson from $1,012 to $989 while keeping a buy rating, implying about 19.5% upside from the prior close.
• McKesson shares were down 0.5% to $827.56 in Tuesday trading. The stock remains well below its 52-week high of $999, and analysts now have a consensus Moderate Buy with an average target of $959.
• The company recently beat earnings estimates for the quarter, posting $11.69 EPS versus expectations of $11.56, though revenue came in below forecasts. Insider selling was also notable, with executives selling shares under pre-arranged trading plans.

McKesson (NYSE:MCK - Get Free Report) had its price objective lowered by equities research analysts at TD Cowen from $1,012.00 to $989.00 in a research note issued to investors on Tuesday,Benzinga reports. The firm presently has a "buy" rating on the stock. TD Cowen's price target indicates a potential upside of 19.51% from the company's previous close.

Other equities research analysts also recently issued reports about the company. Barclays dropped their target price on McKesson from $1,050.00 to $925.00 and set an "overweight" rating on the stock in a report on Wednesday, June 10th. JPMorgan Chase & Co. cut their price objective on shares of McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. Weiss Ratings lowered shares of McKesson from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, July 7th. Citigroup decreased their target price on shares of McKesson from $975.00 to $945.00 and set a "buy" rating for the company in a report on Thursday, May 14th. Finally, Wall Street Zen downgraded shares of McKesson from a "buy" rating to a "hold" rating in a research note on Saturday, June 27th. Fourteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $959.00.

McKesson Stock Down 0.5%

Shares of NYSE:MCK traded down $3.90 during midday trading on Tuesday, reaching $827.56. The company's stock had a trading volume of 97,919 shares, compared to its average volume of 938,376. The firm has a 50 day moving average of $773.47 and a 200-day moving average of $838.42. The firm has a market capitalization of $96.89 billion, a P/E ratio of 21.48, a PEG ratio of 1.38 and a beta of 0.31. McKesson has a 12-month low of $637.00 and a 12-month high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported $11.69 earnings per share for the quarter, topping analysts' consensus estimates of $11.56 by $0.13. McKesson had a net margin of 1.18% and a negative return on equity of 345.35%. The business had revenue of $96.30 billion for the quarter, compared to analysts' expectations of $101.35 billion. During the same quarter in the prior year, the company earned $10.12 earnings per share. The business's revenue was up 6.0% compared to the same quarter last year. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. On average, research analysts predict that McKesson will post 44.28 EPS for the current year.

Insider Activity at McKesson

In other news, EVP Michele Lau sold 3,550 shares of McKesson stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $761.09, for a total value of $2,701,869.50. Following the completion of the sale, the executive vice president directly owned 3,247 shares in the company, valued at $2,471,259.23. The trade was a 52.23% 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, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the business's stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $764.00, for a total transaction of $101,612.00. Following the transaction, the chief accounting officer directly owned 632 shares of the company's stock, valued at $482,848. The trade was a 17.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 28,748 shares of company stock worth $22,262,035 over the last quarter. 0.06% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Wedge Capital Management L L P NC boosted its position in McKesson by 22.5% in the second quarter. Wedge Capital Management L L P NC now owns 38,937 shares of the company's stock worth $29,421,000 after purchasing an additional 7,141 shares during the last quarter. Investors Research Corp purchased a new stake in shares of McKesson during the 2nd quarter valued at about $243,000. Butensky & Cohen Financial Security Inc. lifted its stake in shares of McKesson by 1.0% in the 2nd quarter. Butensky & Cohen Financial Security Inc. now owns 7,150 shares of the company's stock worth $5,402,000 after purchasing an additional 69 shares during the period. Tema ETFs LLC boosted its holdings in shares of McKesson by 3.8% in the second quarter. Tema ETFs LLC now owns 3,204 shares of the company's stock worth $2,421,000 after buying an additional 117 shares during the last quarter. Finally, E. Ohman J or Asset Management AB boosted its holdings in shares of McKesson by 26.6% in the second quarter. E. Ohman J or Asset Management AB now owns 7,205 shares of the company's stock worth $5,444,000 after buying an additional 1,514 shares during the last quarter. Institutional investors own 85.07% of the company's stock.

McKesson Company Profile

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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