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

McKesson Co. (NYSE:MCK)’s share price hit a new 52-week high on Monday . The stock traded as high as $654.25 and last traded at $660.02, with a volume of 184888 shares trading hands. The stock had previously closed at $644.22.

Analysts Set New Price Targets

Several brokerages recently commented on MCK. Wells Fargo & Company boosted their price target on McKesson from $535.00 to $641.00 and gave the company an “equal weight” rating in a research note on Friday, December 13th. Evercore ISI boosted their target price on shares of McKesson from $650.00 to $675.00 and gave the stock an “outperform” rating in a research note on Thursday, February 6th. Bank of America decreased their price target on shares of McKesson from $680.00 to $650.00 and set a “buy” rating on the stock in a research note on Monday, January 6th. Morgan Stanley lifted their target price on McKesson from $612.00 to $642.00 and gave the company an “overweight” rating in a research note on Tuesday, December 17th. Finally, Mizuho started coverage on shares of McKesson in a research report on Wednesday, December 4th. They set a “neutral” rating and a $630.00 price target for the company. Two equities research analysts have rated the stock with a hold rating, thirteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $645.79.

McKesson Stock Performance

The stock has a market cap of $82.13 billion, a price-to-earnings ratio of 29.98, a P/E/G ratio of 1.29 and a beta of 0.52. The business has a 50-day simple moving average of $600.67 and a two-hundred day simple moving average of $567.55.

McKesson (NYSE:MCK) last posted its quarterly earnings results on Wednesday, February 5th. The company reported $8.03 earnings per share for the quarter, missing analysts’ consensus estimates of $8.60 by ($0.57). McKesson had a net margin of 0.82% and a negative return on equity of 181.26%. On average, analysts expect that McKesson Co. will post 32.77 earnings per share for the current fiscal year.

McKesson Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Monday, March 3rd will be issued a dividend of $0.71 per share. This represents a $2.84 annualized dividend and a yield of 0.43%. The ex-dividend date is Monday, March 3rd. McKesson’s dividend payout ratio is 13.00%.

Insider Activity

In other McKesson news, CEO Brian S. Tyler sold 8,961 shares of the company’s stock in a transaction dated Friday, February 21st. The stock was sold at an average price of $597.99, for a total value of $5,358,588.39. Following the completion of the transaction, the chief executive officer now owns 60,664 shares of the company’s stock, valued at $36,276,465.36. This represents a 12.87 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Leann B. Smith sold 579 shares of the company’s stock in a transaction that occurred on Thursday, January 2nd. The shares were sold at an average price of $572.79, for a total value of $331,645.41. Following the completion of the transaction, the executive vice president now directly owns 864 shares of the company’s stock, valued at $494,890.56. This represents a 40.12 % decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 18,689 shares of company stock worth $11,187,351. Insiders own 0.11% of the company’s stock.

Hedge Funds Weigh In On McKesson

A number of hedge funds and other institutional investors have recently made changes to their positions in MCK. Mattson Financial Services LLC bought a new stake in shares of McKesson in the 4th quarter valued at $228,000. Siemens Fonds Invest GmbH boosted its holdings in McKesson by 623.3% in the fourth quarter. Siemens Fonds Invest GmbH now owns 31,470 shares of the company’s stock worth $17,935,000 after acquiring an additional 27,119 shares in the last quarter. Park Square Financial Group LLC bought a new stake in shares of McKesson during the fourth quarter valued at approximately $248,000. Universal Beteiligungs und Servicegesellschaft mbH acquired a new position in shares of McKesson during the fourth quarter worth approximately $55,948,000. Finally, Jefferies Financial Group Inc. lifted its holdings in shares of McKesson by 48.6% in the 4th quarter. Jefferies Financial Group Inc. now owns 12,626 shares of the company’s stock worth $7,196,000 after purchasing an additional 4,131 shares in the last quarter. 85.07% of the stock is owned by institutional investors and hedge funds.

McKesson Company Profile

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products.