McKesson (NYSE:MCK) Rating Lowered to “Buy” at Wall Street Zen

McKesson (NYSE:MCK) was downgraded by Wall Street Zen from a “strong-buy” rating to a “buy” rating in a report released on Saturday.

A number of other brokerages have also recently issued reports on MCK. Morgan Stanley raised their price objective on McKesson from $745.00 to $770.00 and gave the company an “overweight” rating in a research note on Wednesday. Wells Fargo & Company set a $766.00 price target on shares of McKesson and gave the company an “equal weight” rating in a report on Tuesday, June 3rd. Cfra Research cut shares of McKesson from a “moderate buy” rating to a “hold” rating in a research report on Friday, April 4th. UBS Group increased their target price on shares of McKesson from $708.00 to $805.00 and gave the stock a “buy” rating in a report on Tuesday, April 29th. Finally, Bank of America boosted their price target on McKesson from $755.00 to $800.00 and gave the company a “buy” rating in a report on Friday, May 9th. Three research analysts have rated the stock with a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $694.38.

McKesson Stock Performance

NYSE MCK opened at $727.15 on Friday. The company has a market capitalization of $90.98 billion, a P/E ratio of 33.29, a P/E/G ratio of 1.29 and a beta of 0.49. McKesson has a 52-week low of $464.42 and a 52-week high of $732.99. The company has a fifty day moving average of $703.28 and a 200-day moving average of $644.37.

McKesson (NYSE:MCK) last announced its quarterly earnings data on Thursday, May 8th. The company reported $10.12 EPS for the quarter, beating the consensus estimate of $9.83 by $0.29. The firm had revenue of $90.82 billion for the quarter, compared to analyst estimates of $94 billion. McKesson had a negative return on equity of 181.26% and a net margin of 0.82%. The company’s revenue was up 18.9% on a year-over-year basis. During the same period in the prior year, the company earned $6.18 EPS. As a group, analysts forecast that McKesson will post 32.77 EPS for the current fiscal year.

Insider Activity

In other news, CAO Napoleon B. Rutledge, Jr. sold 543 shares of the firm’s stock in a transaction on Monday, May 19th. The stock was sold at an average price of $726.51, for a total value of $394,494.93. Following the transaction, the chief accounting officer now directly owns 1,972 shares in the company, valued at $1,432,677.72. This trade represents a 21.59% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, EVP Thomas L. Rodgers sold 510 shares of the company’s stock in a transaction dated Wednesday, May 28th. The shares were sold at an average price of $717.91, for a total transaction of $366,134.10. Following the sale, the executive vice president now directly owns 5,435 shares of the company’s stock, valued at $3,901,840.85. The trade was a 8.58% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 33,117 shares of company stock valued at $23,526,451 over the last ninety days. 0.11% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On McKesson

Institutional investors have recently bought and sold shares of the stock. Segall Bryant & Hamill LLC grew its stake in shares of McKesson by 25.5% during the 4th quarter. Segall Bryant & Hamill LLC now owns 81,223 shares of the company’s stock valued at $46,290,000 after acquiring an additional 16,502 shares during the period. Fred Alger Management LLC boosted its position in shares of McKesson by 95.5% in the fourth quarter. Fred Alger Management LLC now owns 3,091 shares of the company’s stock worth $1,762,000 after purchasing an additional 1,510 shares during the period. Siemens Fonds Invest GmbH increased its stake in shares of 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 purchasing an additional 27,119 shares in the last quarter. ABC Arbitrage SA purchased a new position in shares of McKesson during the 4th quarter valued at $1,262,000. Finally, Roxbury Financial LLC bought a new position in McKesson in the 4th quarter worth $1,635,000. 85.07% of the stock is owned by institutional investors.

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.