McKesson Corporation (NYSE:MCK) Stock Now Rated “Moderate Buy” by Sell-Side Analysts

McKesson Corporation (NYSE:MCK) has earned an average recommendation of “Moderate Buy” from the nineteen ratings firms that are currently covering the company, MarketBeat.com reports. Four research analysts have rated the stock with a hold recommendation and fifteen have issued a buy recommendation on the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $983.29.

A number of equities analysts have recently commented on MCK shares. TD Cowen lifted their price target 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. Morgan Stanley set a $977.00 price objective on shares of McKesson in a research note on Tuesday, October 6th. Wall Street Zen downgraded shares of McKesson from a “buy” rating to a “hold” rating in a report on Saturday, June 27th. Mizuho raised their target price on shares of McKesson from $885.00 to $905.00 in a research note on Thursday, August 6th. Finally, Evercore reiterated an “outperform” rating and issued a $950.00 target price (down from $1,000.00) on shares of McKesson in a research note on Thursday, August 6th.

McKesson Stock Performance

Shares of NYSE MCK opened at $954.65 on Thursday. The business’s 50-day simple moving average is $887.79 and its 200-day simple moving average is $833.96. McKesson has a 52 week low of $723.68 and a 52 week high of $999.00. The firm has a market cap of $111.30 billion, a price-to-earnings ratio of 25.55, a P/E/G ratio of 1.97 and a beta of 0.30.

McKesson (NYSE:MCK) last posted its earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, topping the consensus estimate of $9.56 by $0.37. The firm had revenue of $105.38 billion during the quarter, compared to analyst estimates of $103.88 billion. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%. The company’s revenue for the quarter was up 7.7% on a year-over-year basis. During the same period in the previous year, the company earned $8.26 EPS. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, equities research analysts forecast that McKesson will post 44.73 earnings per share for the current year.

McKesson Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st were issued a dividend of $0.94 per share. This represents a $3.76 dividend on an annualized basis and a yield of 0.4%. This is a positive change from McKesson’s previous quarterly dividend of $0.82. The ex-dividend date was Tuesday, September 1st. McKesson’s dividend payout ratio is currently 10.06%.

Insider Activity

In other news, CAO B Jr sold 111 shares of the firm’s stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $891.45, for a total value of $98,950.95. Following the sale, the chief accounting officer directly owned 521 shares of the company’s stock, valued at approximately $464,445.45. This trade represents a 17.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradley Lerman sold 301 shares of McKesson stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $892.33, for a total value of $268,591.33. The disclosure for this sale is available in the SEC filing. Company insiders own 0.06% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in MCK. Delos Wealth Advisors LLC bought a new stake in McKesson during the 2nd quarter worth approximately $27,000. Clearstead Trust LLC acquired a new stake in McKesson during the 2nd quarter worth approximately $37,000. GK Wealth Management LLC bought a new position in McKesson in the third quarter valued at approximately $38,000. Bell Investment Advisors Inc bought a new position in McKesson in the second quarter valued at approximately $39,000. Finally, Security National Bank of SO Dak acquired a new position in shares of McKesson in the second quarter valued at approximately $39,000. 85.07% of the stock is owned by institutional investors.

About McKesson

McKesson Corporation (NYSE:MCK) is a healthcare services and information technology company that distributes pharmaceuticals, specialty drugs, medical supplies and other healthcare products. The company serves pharmacies, hospitals, health systems, physician practices, biopharma manufacturers and other healthcare providers, helping move products from manufacturers to patients and care settings.

McKesson’s principal operations include pharmaceutical distribution, medical-surgical supply distribution and technology-enabled services for pharmacies and providers.