McKesson (MCK) – Investment Analysts’ Weekly Ratings Changes

McKesson (NYSE: MCK) recently received a number of ratings updates from brokerages and research firms:

  • 1/9/2019 – McKesson was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “McKesson recently announced a multi-year strategic growth initiative update to generate approximately $300 million to $400 million in annual pre-tax gross savings. The company has been riding on Medical-Surgical Solutions segment. The improvement in the company’s international sales is a major positive. Furthermore, management is optimistic about the recent acquisition of Medical Specialties Distributors. On the flip side, dull performance in the European Pharmaceutical Solutions segment is a headwind. McKesson’s escalating operating expenses are concerns. Regulatory headwinds in the United Kingdom and Canada have been strong deterrents in the U.S. Pharmaceutical and Specialty Solutions segment. Price fluctuation of generic pharmaceuticals and stiff competition in the MedTech space add to the company’s woes. McKesson underperformed the industry in a year’s time.”
  • 1/6/2019 – McKesson had its “hold” rating reaffirmed by analysts at Barclays PLC. They now have a $124.00 price target on the stock.
  • 1/5/2019 – McKesson was downgraded by analysts at ValuEngine from a “sell” rating to a “strong sell” rating.
  • 1/3/2019 – McKesson was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “McKesson underperformed the industry in a year’s time. Dull performance in the European Pharmaceutical Solutions segment is a headwind. McKesson’s escalating operating expenses are concerns. Regulatory headwinds in the United Kingdom and Canada have been strong deterrents in the U.S. Pharmaceutical and Specialty Solutions segment. Price fluctuation of generic pharmaceuticals and stiff competition in the MedTech space add to the company’s woes. On the brighter side, McKesson recently announced a multi-year strategic growth initiative update to generate approximately $300 million to $400 million in annual pre-tax gross savings. The company has been riding on Medical-Surgical Solutions segment. The improvement in the company’s international sales is a major positive. Furthermore, management is optimistic about the recent acquisition of Medical Specialties Distributors.”
  • 12/9/2018 – McKesson had its price target lowered by analysts at Morgan Stanley from $142.00 to $130.00.
  • 12/3/2018 – McKesson had its price target lowered by analysts at Morgan Stanley from $142.00 to $130.00. They now have an “equal weight” rating on the stock.
  • 11/16/2018 – McKesson was downgraded by analysts at ValuEngine from a “sell” rating to a “strong sell” rating.

NYSE MCK opened at $122.16 on Monday. McKesson Co. has a one year low of $106.11 and a one year high of $178.86. The company has a debt-to-equity ratio of 0.69, a current ratio of 0.99 and a quick ratio of 0.56. The firm has a market capitalization of $23.11 billion, a P/E ratio of 9.68, a PEG ratio of 1.35 and a beta of 1.06.

McKesson (NYSE:MCK) last issued its earnings results on Thursday, October 25th. The company reported $3.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.28 by $0.32. McKesson had a return on equity of 26.55% and a net margin of 0.06%. The business had revenue of $53.08 billion during the quarter, compared to the consensus estimate of $53.56 billion. On average, sell-side analysts forecast that McKesson Co. will post 13.41 earnings per share for the current year.

The business also recently announced a quarterly dividend, which was paid on Wednesday, January 2nd. Shareholders of record on Monday, December 3rd were paid a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a dividend yield of 1.28%. The ex-dividend date of this dividend was Friday, November 30th. McKesson’s dividend payout ratio (DPR) is presently 12.36%.

Institutional investors and hedge funds have recently modified their holdings of the business. IMS Capital Management acquired a new stake in shares of McKesson in the 3rd quarter worth $57,000. Flagship Harbor Advisors LLC acquired a new stake in shares of McKesson during the 2nd quarter worth about $118,000. Reilly Financial Advisors LLC increased its position in shares of McKesson by 506.8% during the 3rd quarter. Reilly Financial Advisors LLC now owns 898 shares of the company’s stock worth $119,000 after purchasing an additional 750 shares during the last quarter. Bray Capital Advisors acquired a new stake in shares of McKesson during the 3rd quarter worth about $123,000. Finally, FNY Investment Advisers LLC increased its position in shares of McKesson by 88.6% during the 3rd quarter. FNY Investment Advisers LLC now owns 1,120 shares of the company’s stock worth $148,000 after purchasing an additional 526 shares during the last quarter. 85.31% of the stock is owned by institutional investors and hedge funds.

McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. It operates in three segments: U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions, and Medical-Surgical Solutions. The company distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs, as well as other healthcare-related products; and offers practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices.

Further Reading: Fundamental Analysis and Individual Investors

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