Zacks Investment Research upgraded shares of McKesson (NYSE:MCK) from a hold rating to a buy rating in a research note published on Tuesday, December 26th. The brokerage currently has $177.00 target price on the stock.
According to Zacks, “McKesson has had an unimpressive run on the bourse in the last three months. However, solid performance at the Distribution Solutions segment is likely to drive growth. The company’s strong guidance for fiscal 2018 holds promise. The upside is expected to be driven by market growth, acquisitions and divestitures. Recently, McKesson announced that it has entered into an agreement to buy RxCrossroads from CVS Health for $735 million. The acquisition is expected to close by fourth-quarter. On the flipside, revenues from Technology Solutions are expected to be down year over year. Furthermore, stiff competition, currency headwind and reimbursement issues remain challenges. Pricing pressure in the independent retail pharmacy channel is a headwind. Particularly, McKesson’s sell-side pricing environment continues to remain competitive with less pricing variability.”
A number of other equities research analysts have also recently weighed in on MCK. Royal Bank of Canada assumed coverage on shares of McKesson in a research note on Tuesday, September 19th. They set a sector perform rating and a $168.00 price objective on the stock. Jefferies Group set a $165.00 target price on McKesson and gave the company a hold rating in a research note on Wednesday, October 18th. Cowen raised McKesson from a market perform rating to an outperform rating and lifted their target price for the company from $176.00 to $189.00 in a research note on Tuesday, October 10th. Needham & Company LLC set a $179.00 price target on McKesson and gave the company a buy rating in a report on Monday, October 16th. Finally, Morgan Stanley lowered McKesson from an overweight rating to an equal weight rating and reduced their price target for the company from $184.00 to $172.00 in a report on Thursday, September 14th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and eleven have given a buy rating to the stock. The stock has an average rating of Hold and a consensus target price of $174.64.
Shares of McKesson (NYSE:MCK) opened at $162.30 on Tuesday. The company has a market cap of $33,840.00, a PE ratio of 7.69, a P/E/G ratio of 1.61 and a beta of 1.23. McKesson has a 12 month low of $133.82 and a 12 month high of $169.29. The company has a quick ratio of 0.61, a current ratio of 1.05 and a debt-to-equity ratio of 0.66.
McKesson (NYSE:MCK) last posted its quarterly earnings results on Thursday, October 26th. The company reported $3.28 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $2.78 by $0.50. The firm had revenue of $52.06 billion for the quarter, compared to analyst estimates of $51.69 billion. McKesson had a net margin of 2.24% and a return on equity of 24.87%. McKesson’s revenue for the quarter was up 4.2% compared to the same quarter last year. During the same quarter last year, the firm posted $2.94 earnings per share. equities analysts anticipate that McKesson will post 12.23 earnings per share for the current year.
The firm also recently declared a quarterly dividend, which was paid on Tuesday, January 2nd. Shareholders of record on Friday, December 1st were issued a $0.34 dividend. The ex-dividend date was Thursday, November 30th. This represents a $1.36 annualized dividend and a dividend yield of 0.84%. McKesson’s dividend payout ratio (DPR) is currently 6.44%.
In related news, Chairman John H. Hammergren sold 65,000 shares of the stock in a transaction dated Thursday, December 14th. The stock was sold at an average price of $160.00, for a total transaction of $10,400,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 1.20% of the stock is owned by corporate insiders.
A number of hedge funds have recently bought and sold shares of MCK. Captrust Financial Advisors acquired a new stake in shares of McKesson in the second quarter valued at approximately $107,000. Harvest Fund Management Co. Ltd acquired a new stake in shares of McKesson in the second quarter valued at approximately $125,000. WFG Advisors LP lifted its position in shares of McKesson by 5.0% in the second quarter. WFG Advisors LP now owns 859 shares of the company’s stock valued at $141,000 after buying an additional 41 shares during the last quarter. Wealthcare Advisory Partners LLC acquired a new stake in shares of McKesson in the third quarter valued at approximately $155,000. Finally, Atwood & Palmer Inc. acquired a new stake in shares of McKesson in the second quarter valued at approximately $165,000. Hedge funds and other institutional investors own 87.88% of the company’s stock.
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McKesson Corporation is a healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology company. The Company provides medicines, medical products and healthcare services by partnering with pharmaceutical manufacturers, providers, pharmacies, governments and other organizations in healthcare.
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