McKesson (NYSE:MCK) Sets New 1-Year High – Here’s Why

McKesson Corporation (NYSE:MCK)’s stock price reached a new 52-week high during trading on Thursday. The stock traded as high as $1,003.21 and last traded at $996.4360, with a volume of 40,722 shares trading hands. The stock had previously closed at $976.57.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on MCK. Royal Bank Of Canada reissued a “sector perform” rating and issued a $845.00 price objective on shares of McKesson in a research report on Monday, September 14th. Morgan Stanley set a $977.00 target price on shares of McKesson in a report on Tuesday, October 6th. UBS Group lifted their target price on shares of McKesson from $1,050.00 to $1,080.00 and gave the stock a “buy” rating in a report on Thursday, August 6th. Wall Street Zen lowered shares of McKesson from a “buy” rating to a “hold” rating in a research note on Saturday, June 27th. Finally, TD Cowen increased their price target on shares of McKesson from $989.00 to $1,006.00 and gave the company a “buy” rating in a report on Thursday, August 6th. Fifteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $983.29.

McKesson Trading Up 2.1%

The stock has a market cap of $116.30 billion, a P/E ratio of 26.65, a PEG ratio of 2.02 and a beta of 0.30. The firm has a 50-day simple moving average of $892.49 and a two-hundred day simple moving average of $835.35.

McKesson (NYSE:MCK) last posted its earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, topping analysts’ consensus estimates of $9.56 by $0.37. The company had revenue of $105.38 billion during the quarter, compared to the consensus estimate 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 was up 7.7% on a year-over-year basis. During the same quarter last year, the firm earned $8.26 earnings per share. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. Sell-side analysts predict that McKesson Corporation will post 44.73 earnings per share for the current year.

McKesson Increases Dividend

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

Insider Activity

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

Institutional Investors Weigh In On McKesson

Several institutional investors have recently made changes to their positions in MCK. Nvwm LLC grew its holdings in shares of McKesson by 933.3% during the 3rd quarter. Nvwm LLC now owns 31 shares of the company’s stock worth $26,000 after purchasing an additional 28 shares in the last quarter. KG Capital Management increased its position in shares of McKesson by 0.9% in the third quarter. KG Capital Management now owns 1,943 shares of the company’s stock worth $1,659,000 after purchasing an additional 17 shares during the period. Mather Group LLC. increased its position in shares of McKesson by 3.7% in the third quarter. Mather Group LLC. now owns 1,523 shares of the company’s stock worth $1,301,000 after purchasing an additional 54 shares during the period. First Pacific Financial acquired a new position in McKesson in the third quarter valued at about $64,000. Finally, SC&H Financial Advisors Inc. acquired a new position in McKesson in the third quarter valued at about $224,000. 85.07% of the stock is currently owned by institutional investors.

McKesson Company Profile

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.