Recent Investment Analysts’ Ratings Changes for McKesson Corp. (MCK)
A number of research firms have changed their ratings and price targets for McKesson Corp. (NYSE: MCK):
- 9/29/2016 – McKesson Corp. was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “McKesson depends heavily on the pharmaceutical distribution business, which is characterized by slow growth. Unfavorable movements in foreign exchange rates continue to hurt sales. In addition McKesson expects weaker generic pharmaceutical pricing trends, specific to the company’s mix of business, in 2017. Moreover, the expiration of McKesson’s contract with Optum will be a major headwind. Operating performance of Celesio which was disappointing in the fiscal first quarter of 2017 due to reimbursement cuts, is expected to continue through the year. However, the company has been actively pursuing deals and acquisitions to drive growth. McKesson will separate its Technology business into a new healthcare information technology company, which is slated to close in the first half of calendar 2017. The spin-off will enable the company to concentrate on the primary pharmaceuticals distribution business.”
- 9/26/2016 – McKesson Corp. had its price target lowered by analysts at Mizuho from $197.00 to $183.00. They now have a “neutral” rating on the stock.
- 9/19/2016 – McKesson Corp. had its “hold” rating reaffirmed by analysts at Argus.
- 9/16/2016 – McKesson Corp. was downgraded by analysts at Goldman Sachs Group Inc. from a “buy” rating to a “neutral” rating. They now have a $189.00 price target on the stock, down previously from $210.00.
- 9/16/2016 – McKesson Corp. was upgraded by analysts at Vetr from a “buy” rating to a “strong-buy” rating.
- 9/1/2016 – McKesson Corp. had its “outperform” rating reaffirmed by analysts at Leerink Swann. They now have a $230.00 price target on the stock.
- 8/11/2016 – McKesson Corp. had its price target raised by analysts at Mizuho from $174.00 to $197.00. They now have a “neutral” rating on the stock.
- 8/9/2016 – McKesson Corp. had its price target raised by analysts at JPMorgan Chase & Co. from $210.00 to $221.00. They now have an “overweight” rating on the stock.
McKesson Corp. (NYSE:MCK) traded down 0.57% on Monday, hitting $165.80. 274,339 shares of the company were exchanged. The stock has a market capitalization of $37.42 billion, a P/E ratio of 17.22 and a beta of 0.93. The company has a 50 day moving average price of $179.38 and a 200-day moving average price of $178.82. McKesson Corp. has a 52 week low of $148.29 and a 52 week high of $202.20.
McKesson Corp. (NYSE:MCK) last issued its quarterly earnings data on Wednesday, July 27th. The company reported $3.50 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $3.33 by $0.17. McKesson Corp. had a net margin of 1.15% and a return on equity of 31.62%. The firm had revenue of $49.73 billion for the quarter, compared to analysts’ expectations of $50.32 billion. During the same quarter in the prior year, the business earned $3.14 EPS. The business’s quarterly revenue was up 4.6% on a year-over-year basis. On average, equities analysts expect that McKesson Corp. will post $13.63 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Monday, October 3rd. Investors of record on Thursday, September 1st will be issued a $0.28 dividend. This represents a $1.12 annualized dividend and a yield of 0.67%. The ex-dividend date is Tuesday, August 30th. McKesson Corp.’s dividend payout ratio is 11.64%.
In related news, Chairman John H. Hammergren sold 100,500 shares of the stock in a transaction that occurred on Monday, September 12th. The shares were sold at an average price of $180.77, for a total value of $18,167,385.00. Following the completion of the sale, the chairman now directly owns 100,500 shares of the company’s stock, valued at approximately $18,167,385. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO James A. Beer sold 5,500 shares of the stock in a transaction that occurred on Thursday, July 14th. The stock was sold at an average price of $199.00, for a total transaction of $1,094,500.00. Following the completion of the sale, the chief financial officer now directly owns 12,412 shares of the company’s stock, valued at $2,469,988. The disclosure for this sale can be found here. 1.15% of the stock is currently owned by corporate insiders.
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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