McKesson (NYSE:MCK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.
According to Zacks, “McKesson's recent acquisition of RxCrossroads is a positive. It should strengthen the company’s foothold in pharmaceutical and biotechnology space. Among other buyouts, the purchase of retailer Well.ca is expected to bring online commerce capabilities and digital experience to McKesson Canada's retail assets. The company’s strong guidance for fiscal 2018 also holds promise. On the flip side, stiff competition, currency headwind, reimbursement issues continue to pose 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. Over the past year, McKesson underperformed the broader industry in terms of prices.”
A number of other equities analysts have also commented on MCK. ValuEngine lowered McKesson from a “buy” rating to a “hold” rating in a research note on Thursday, February 15th. Mizuho reduced their price objective on McKesson from $186.00 to $179.00 and set a “neutral” rating on the stock in a research note on Friday, February 2nd. Robert W. Baird reissued a “buy” rating and issued a $200.00 price objective on shares of McKesson in a research note on Wednesday, January 17th. Evercore ISI assumed coverage on McKesson in a research note on Thursday, January 4th. They issued an “outperform” rating and a $179.00 price objective on the stock. Finally, Needham & Company LLC boosted their price objective on McKesson from $173.00 to $180.00 and gave the stock a “buy” rating in a research note on Tuesday, January 23rd. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and ten have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and an average target price of $177.79.
McKesson (MCK) traded up $1.43 during trading on Wednesday, reaching $150.28. The company’s stock had a trading volume of 299,331 shares, compared to its average volume of 1,806,538. The company has a current ratio of 1.07, a quick ratio of 0.61 and a debt-to-equity ratio of 0.63. The firm has a market capitalization of $31,054.06, a price-to-earnings ratio of 6.66, a P/E/G ratio of 1.37 and a beta of 1.23. McKesson has a one year low of $133.82 and a one year high of $178.86.
McKesson (NYSE:MCK) last posted its quarterly earnings data on Thursday, February 1st. The company reported $3.41 EPS for the quarter, topping analysts’ consensus estimates of $2.92 by $0.49. The company had revenue of $53.62 billion for the quarter, compared to analyst estimates of $51.98 billion. McKesson had a return on equity of 22.98% and a net margin of 2.34%. The business’s revenue was up 7.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $3.04 earnings per share. equities analysts forecast that McKesson will post 12.71 EPS for the current year.
In other 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 accessible through the SEC website. Corporate insiders own 1.20% of the company’s stock.
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Icon Wealth Partners LLC bought a new stake in McKesson in the fourth quarter valued at about $111,000. Genovese Burford & Brothers Wealth & Retirement Plan Management LLC increased its holdings in McKesson by 176.6% in the fourth quarter. Genovese Burford & Brothers Wealth & Retirement Plan Management LLC now owns 769 shares of the company’s stock valued at $130,000 after purchasing an additional 491 shares during the last quarter. Hikari Tsushin Inc. bought a new stake in McKesson in the fourth quarter valued at about $151,000. Wealthcare Advisory Partners LLC bought a new stake in McKesson in the third quarter valued at about $155,000. Finally, Virtue Capital Management LLC bought a new stake in McKesson in the fourth quarter valued at about $180,000. Institutional investors and hedge funds own 85.47% of the company’s stock.
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McKesson Company Profile
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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