McKesson (NYSE:MCK) Earns “Overweight” Rating from Morgan Stanley

McKesson (NYSE:MCK)‘s stock had its “overweight” rating reissued by investment analysts at Morgan Stanley in a research report issued to clients and investors on Wednesday, July 16th, Marketbeat reports. They presently have a $810.00 target price on the stock, up from their prior target price of $770.00. Morgan Stanley’s price objective indicates a potential upside of 13.80% from the company’s previous close.

A number of other research firms also recently weighed in on MCK. Wells Fargo & Company set a $766.00 price target on shares of McKesson and gave the company an “equal weight” rating in a research note on Tuesday, June 3rd. Bank of America boosted their price objective on McKesson from $755.00 to $800.00 and gave the stock a “buy” rating in a research report on Friday, May 9th. Evercore ISI increased their target price on McKesson from $760.00 to $800.00 and gave the company an “outperform” rating in a research report on Wednesday, July 9th. Wall Street Zen cut McKesson from a “strong-buy” rating to a “buy” rating in a report on Sunday, July 13th. Finally, Cfra Research downgraded McKesson from a “moderate buy” rating to a “hold” rating in a research note on Friday, April 4th. Three equities research analysts have rated the stock with a hold rating, eleven have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, McKesson presently has an average rating of “Moderate Buy” and an average price target of $710.17.

McKesson Price Performance

Shares of NYSE:MCK opened at $711.80 on Wednesday. McKesson has a 1 year low of $464.42 and a 1 year high of $737.89. The stock has a market capitalization of $89.05 billion, a price-to-earnings ratio of 27.56, a price-to-earnings-growth ratio of 1.44 and a beta of 0.48. The company’s 50 day simple moving average is $717.86 and its 200 day simple moving average is $672.71.

McKesson (NYSE:MCK) last issued its quarterly earnings results on Thursday, May 8th. The company reported $10.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $9.83 by $0.29. McKesson had a negative return on equity of 201.12% and a net margin of 0.92%. The company had revenue of $90.82 billion for the quarter, compared to analyst estimates of $94 billion. During the same quarter last year, the company posted $6.18 EPS. The company’s revenue for the quarter was up 18.9% compared to the same quarter last year. As a group, analysts anticipate that McKesson will post 32.77 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Britt J. Vitalone sold 6,336 shares of the firm’s stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $717.30, for a total transaction of $4,544,812.80. Following the completion of the sale, the chief financial officer owned 14,760 shares of the company’s stock, valued at $10,587,348. This trade represents a 30.03% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, EVP Thomas L. Rodgers sold 2,891 shares of McKesson stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $712.18, for a total value of $2,058,912.38. Following the completion of the sale, the executive vice president owned 2,544 shares of the company’s stock, valued at approximately $1,811,785.92. The trade was a 53.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 52,488 shares of company stock worth $37,242,862 over the last three months. Insiders own 0.08% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the stock. MassMutual Private Wealth & Trust FSB raised its holdings in shares of McKesson by 1.6% during the second quarter. MassMutual Private Wealth & Trust FSB now owns 863 shares of the company’s stock valued at $632,000 after purchasing an additional 14 shares during the period. CVA Family Office LLC raised its stake in McKesson by 6.0% during the 1st quarter. CVA Family Office LLC now owns 265 shares of the company’s stock worth $178,000 after buying an additional 15 shares during the period. Palisade Asset Management LLC raised its stake in McKesson by 2.1% during the 1st quarter. Palisade Asset Management LLC now owns 715 shares of the company’s stock worth $481,000 after buying an additional 15 shares during the period. SteelPeak Wealth LLC boosted its holdings in McKesson by 0.5% in the first quarter. SteelPeak Wealth LLC now owns 2,771 shares of the company’s stock worth $1,867,000 after acquiring an additional 15 shares in the last quarter. Finally, Parallel Advisors LLC grew its stake in McKesson by 0.6% in the first quarter. Parallel Advisors LLC now owns 2,501 shares of the company’s stock valued at $1,683,000 after acquiring an additional 16 shares during the period. 85.07% of the stock is owned by institutional investors.

About McKesson

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.