McKesson (MCK) Cut to “Hold” at ValuEngine

ValuEngine lowered shares of McKesson (NYSE:MCK) from a buy rating to a hold rating in a research report released on Thursday.

A number of other research analysts have also issued reports on the company. Needham & Company LLC set a $178.00 target price on McKesson and gave the company a buy rating in a report on Tuesday, October 24th. Credit Suisse Group reissued an underperform rating and issued a $130.00 target price (down previously from $155.00) on shares of McKesson in a report on Thursday, November 9th. Deutsche Bank started coverage on McKesson in a report on Monday, December 4th. They issued a buy rating and a $175.00 target price on the stock. Royal Bank of Canada reissued a hold rating and issued a $170.00 target price on shares of McKesson in a report on Friday, October 27th. Finally, Zacks Investment Research raised McKesson from a hold rating to a buy rating and set a $177.00 target price on the stock in a report on Tuesday, December 26th. Two analysts have rated the stock with a sell rating, seven have given a hold rating and ten have assigned a buy rating to the stock. McKesson currently has a consensus rating of Hold and an average target price of $177.50.

Shares of McKesson (NYSE MCK) opened at $150.50 on Thursday. The company has a quick ratio of 0.61, a current ratio of 1.07 and a debt-to-equity ratio of 0.63. McKesson has a 52 week low of $133.82 and a 52 week high of $178.86. The firm has a market capitalization of $31,054.06, a P/E ratio of 6.67, a price-to-earnings-growth ratio of 1.37 and a beta of 1.23.

McKesson (NYSE:MCK) last issued its quarterly earnings data on Thursday, February 1st. The company reported $3.41 earnings per share for the quarter, beating the Zacks’ consensus estimate of $2.92 by $0.49. McKesson had a return on equity of 22.98% and a net margin of 2.34%. The company had revenue of $53.62 billion during the quarter, compared to analysts’ expectations of $51.98 billion. During the same quarter in the previous year, the business earned $3.04 earnings per share. The firm’s revenue for the quarter was up 7.0% on a year-over-year basis. equities research analysts expect that McKesson will post 12.71 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, April 2nd. Investors of record on Thursday, March 1st will be issued a dividend of $0.34 per share. This represents a $1.36 dividend on an annualized basis and a yield of 0.90%. The ex-dividend date of this dividend is Wednesday, February 28th. McKesson’s dividend payout ratio is presently 6.03%.

In related news, Chairman John H. Hammergren sold 65,000 shares of the company’s stock in a transaction on Thursday, December 14th. The stock was sold at an average price of $160.00, for a total transaction of $10,400,000.00. The sale was disclosed in a document filed with the SEC, which is available at this link. Corporate insiders own 1.20% of the company’s stock.

A number of hedge funds have recently made changes to their positions in MCK. Koch Industries Inc. acquired a new position in McKesson during the second quarter worth $212,000. Cetera Investment Advisers acquired a new position in McKesson during the second quarter worth $286,000. WFG Advisors LP grew its holdings in McKesson by 5.0% during the second quarter. WFG Advisors LP now owns 859 shares of the company’s stock worth $141,000 after acquiring an additional 41 shares during the period. Achmea Investment Management B.V. grew its holdings in McKesson by 25.4% during the second quarter. Achmea Investment Management B.V. now owns 23,564 shares of the company’s stock worth $3,875,000 after acquiring an additional 4,774 shares during the period. Finally, Gs Investments Inc. acquired a new position in McKesson during the second quarter worth $1,679,000. 85.47% of the stock is currently owned by hedge funds and other institutional investors.

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About McKesson

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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