Brokerages Set McKesson Corporation (NYSE:MCK) Price Target at $977.00

Shares of McKesson Corporation (NYSE:MCK) have earned a consensus rating of “Moderate Buy” from the eighteen ratings firms that are currently covering the firm, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold rating and fourteen have issued a buy rating on the company. The average 12 month price target among analysts that have issued a report on the stock in the last year is $973.4375.

A number of research firms have recently issued reports on MCK. Evercore reiterated an “outperform” rating on shares of McKesson in a research note on Thursday, August 6th. William Blair initiated coverage on McKesson in a report on Tuesday, April 28th. They set an “outperform” rating for the company. Morgan Stanley reissued an “overweight” rating on shares of McKesson in a research note on Friday, August 7th. Royal Bank Of Canada assumed coverage on McKesson in a report on Wednesday, August 19th. They set a “sector perform” rating and a $845.00 target price on the stock. Finally, Weiss Ratings lowered McKesson from a “buy (b)” rating to a “buy (b-)” rating in a research note on Tuesday, July 7th.

McKesson Stock Performance

MCK opened at $904.31 on Wednesday. The firm has a market cap of $105.43 billion, a price-to-earnings ratio of 24.20, a PEG ratio of 1.72 and a beta of 0.30. The firm’s 50-day simple moving average is $825.22 and its 200-day simple moving average is $844.60. McKesson has a twelve month low of $673.38 and a twelve month high of $999.00.

McKesson (NYSE:MCK) last released its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 EPS for the quarter, beating analysts’ consensus estimates of $9.56 by $0.37. The firm had revenue of $105.38 billion for the quarter, compared to analyst estimates of $103.88 billion. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The company’s revenue for the quarter was up 7.7% compared to the same quarter last year. During the same period in the previous year, the business earned $8.26 earnings per share. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, sell-side analysts anticipate that McKesson will post 44.65 EPS for the current fiscal year.

McKesson Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be given a $0.94 dividend. This represents a $3.76 annualized dividend and a yield of 0.4%. The ex-dividend date is Tuesday, September 1st. This is a boost from McKesson’s previous quarterly dividend of $0.82. McKesson’s dividend payout ratio is 8.78%.

Insider Activity at McKesson

In other news, CEO Brian S. Tyler sold 8,463 shares of the company’s stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $793.56, for a total transaction of $6,715,898.28. Following the transaction, the chief executive officer directly owned 5,919 shares in the company, valued at approximately $4,697,081.64. This represents a 58.84% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $764.00, for a total transaction of $101,612.00. Following the sale, the chief accounting officer directly owned 632 shares in the company, valued at $482,848. This trade represents a 17.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 23,111 shares of company stock valued at $18,011,274. Insiders own 0.06% of the company’s stock.

Institutional Investors Weigh In On McKesson

A number of institutional investors and hedge funds have recently made changes to their positions in MCK. University of Texas Texas AM Investment Management Co. acquired a new position in McKesson during the 4th quarter valued at about $25,000. Swiss RE Ltd. acquired a new stake in shares of McKesson during the 4th quarter worth approximately $26,000. Delos Wealth Advisors LLC bought a new stake in shares of McKesson during the second quarter worth approximately $27,000. State of Wyoming acquired a new position in McKesson in the second quarter valued at approximately $29,000. Finally, Kingdom Financial Group LLC. bought a new position in McKesson in the fourth quarter valued at approximately $33,000. Institutional investors own 85.07% of the company’s stock.

More McKesson News

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson agreed to acquire Precision Medicine Group for approximately $2.25 billion. The transaction would add clinical research, consulting and biopharma commercialization capabilities to McKesson’s oncology-focused business, broadening its exposure to higher-growth healthcare services. Reuters article about McKesson’s Precision Medicine acquisition
• Positive Sentiment: McKesson raised its fiscal 2027 earnings outlook as oncology demand, GLP-1 volumes and specialty pharmaceutical distribution accelerate. The higher guidance reinforces expectations for double-digit earnings growth and supports investor confidence in the company’s growth strategy. McKesson FY2027 guidance article
• Positive Sentiment: Short interest fell 33% to about 2.42 million shares as of August 14, representing roughly 2.1% of shares outstanding and 2.2 days of average trading volume. The decline suggests reduced bearish positioning and may provide additional support for the stock.
• Neutral Sentiment: Healthcare stocks broadly advanced late Tuesday, giving McKesson a favorable sector backdrop. However, sector-wide gains do not necessarily reflect company-specific fundamentals. Healthcare sector update
• Negative Sentiment: Analysts caution that McKesson’s premium valuation leaves less room for execution setbacks. Drug-pricing pressure, potential policy changes and cash-flow demands associated with expansion and acquisitions remain risks to the investment thesis. McKesson valuation analysis

About McKesson

McKesson Corporation (NYSE: MCK) is a global healthcare services and distribution company that supplies pharmaceuticals, medical-surgical products and health care technology solutions. Founded in 1833 and headquartered in Irving, Texas, McKesson operates across the drug distribution and healthcare services value chain, connecting manufacturers, pharmacies, hospitals and health systems to help manage the movement of medicines and clinical supplies.

The company’s core activities include pharmaceutical wholesale distribution and logistics, specialty pharmacy services, and the provision of medical-surgical supplies to acute and non-acute care providers.