McKesson Corp. (MCK) Downgraded by Goldman Sachs Group Inc.
Goldman Sachs Group Inc. lowered shares of McKesson Corp. (NYSE:MCK) from a buy rating to a neutral rating in a report issued on Friday. They currently have $189.00 price objective on the stock, down from their previous price objective of $210.00.
A number of other research firms have also commented on MCK. Deutsche Bank AG reissued a buy rating on shares of McKesson Corp. in a research report on Monday, July 18th. Citigroup Inc. raised their target price on McKesson Corp. from $215.00 to $225.00 and gave the company a buy rating in a research report on Thursday, July 28th. Morgan Stanley raised their target price on McKesson Corp. from $199.00 to $211.00 and gave the company an overweight rating in a research report on Thursday, July 28th. Mizuho raised their target price on McKesson Corp. from $174.00 to $197.00 and gave the company a neutral rating in a research report on Thursday, August 11th. Finally, JPMorgan Chase & Co. raised their target price on McKesson Corp. from $210.00 to $221.00 and gave the company an overweight rating in a research report on Tuesday, August 9th. Nine investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the company. The stock presently has a consensus rating of Buy and a consensus price target of $201.95.
McKesson Corp. (NYSE:MCK) opened at 164.80 on Friday. The firm has a market cap of $37.20 billion, a P/E ratio of 17.11 and a beta of 0.95. The company has a 50-day moving average price of $185.97 and a 200-day moving average price of $178.85. McKesson Corp. has a 1-year low of $148.29 and a 1-year high of $202.20.
McKesson Corp. (NYSE:MCK) last released its quarterly earnings results on Wednesday, July 27th. The company reported $3.50 EPS for the quarter, beating analysts’ consensus estimates of $3.33 by $0.17. The business earned $49.73 billion during the quarter, compared to analyst estimates of $50.32 billion. McKesson Corp. had a return on equity of 31.62% and a net margin of 1.15%. McKesson Corp.’s quarterly revenue was up 4.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $3.14 EPS. On average, equities research analysts forecast that McKesson Corp. will post $13.66 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Monday, October 3rd. Shareholders of record on Thursday, September 1st will be issued a $0.28 dividend. The ex-dividend date is Tuesday, August 30th. This represents a $1.12 annualized dividend and a dividend yield of 0.68%. McKesson Corp.’s payout ratio is currently 11.64%.
In related news, Director Wayne A. Budd sold 2,309 shares of the firm’s stock in a transaction dated Monday, September 12th. The stock was sold at an average price of $179.70, for a total transaction of $414,927.30. Following the transaction, the director now directly owns 723 shares of the company’s stock, valued at approximately $129,923.10. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Marie L/Ca Knowles sold 915 shares of the firm’s stock in a transaction dated Monday, August 1st. The shares were sold at an average price of $192.73, for a total value of $176,347.95. The disclosure for this sale can be found here. 1.15% of the stock is owned by company insiders.
Several institutional investors have recently made changes to their positions in MCK. Boston Partners boosted its position in shares of McKesson Corp. by 108.6% in the second quarter. Boston Partners now owns 4,659,692 shares of the company’s stock worth $869,731,000 after buying an additional 2,425,685 shares in the last quarter. Capital Research Global Investors boosted its position in shares of McKesson Corp. by 16.8% in the second quarter. Capital Research Global Investors now owns 9,021,412 shares of the company’s stock worth $1,683,847,000 after buying an additional 1,297,412 shares in the last quarter. Scharf Investments LLC boosted its position in shares of McKesson Corp. by 11,803.7% in the first quarter. Scharf Investments LLC now owns 1,190,016 shares of the company’s stock worth $187,130,000 after buying an additional 1,180,019 shares in the last quarter. Wellington Management Group LLP boosted its position in shares of McKesson Corp. by 9.3% in the first quarter. Wellington Management Group LLP now owns 11,312,022 shares of the company’s stock worth $1,778,816,000 after buying an additional 961,630 shares in the last quarter. Finally, Senator Investment Group LP purchased a new position in shares of McKesson Corp. during the second quarter worth $111,990,000. 84.77% of the stock is currently owned by institutional investors.
About McKesson Corp.
McKesson Corporation (McKesson) is a pharmaceutical distribution services and information technology company. The Company delivers an offering of pharmaceuticals and medical supplies. It operates through two segments: McKesson Distribution Solutions and McKesson Technology Solutions. The Distribution Solutions segment distributes branded and generic pharmaceutical drugs and other healthcare-related products around the world and provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices.
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