McKesson Corporation (NYSE:MCK) Stock Has Consensus Price Target of $973.19

Shares of McKesson Corporation (NYSE:MCK) have received an average recommendation of “Moderate Buy” from the nineteen research firms that are presently covering the firm, Marketbeat Ratings reports. Four research analysts have rated the stock with a hold recommendation and fifteen have issued a buy recommendation on the company. The average 1-year price objective among brokerages that have issued ratings on the stock in the last year is $983.29.

A number of analysts recently weighed in on MCK shares. Evercore reaffirmed an “outperform” rating and set a $950.00 price target (down from $1,000.00) on shares of McKesson in a research report on Thursday, August 6th. Bank of America raised their price objective on McKesson from $950.00 to $1,050.00 in a research report on Thursday, August 6th. Weiss Ratings upgraded McKesson from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, September 4th. Barclays upped their target price on McKesson from $925.00 to $1,000.00 and gave the stock an “overweight” rating in a research report on Wednesday, August 19th. Finally, Robert W. Baird set a $1,015.00 target price on McKesson in a research note on Thursday, August 6th.

McKesson News Roundup

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: Analysts raised their outlook. Barclays increased its price target to $1,000, and Leerink Partners initiated or reiterated a Buy rating, reinforcing the view that McKesson can continue to appreciate. McKesson also carries a consensus “Moderate Buy” recommendation. Barclays raised its target for McKesson stock to USD 1,000.00
• Positive Sentiment: McKesson is expanding its specialty healthcare business. The company is partnering with Clayton, Dubilier & Rice to acquire Option Care Health in a transaction valued at approximately $5.8 billion, including debt. The deal would give McKesson greater exposure to home and alternate-site infusion services, potentially adding growth and strategic diversification. McKesson, CD&R to Acquire Option Care Health
• Neutral Sentiment: The acquisition’s valuation is attracting investor scrutiny. Option Care shareholders are being offered $32.05 per share, a 37% premium, which could accelerate growth but also raises questions about price, financing, execution and integration risks. McKesson Joins $5.8 Billion Option Care Health Acquisition
• Positive Sentiment: Momentum and fundamental screens remain favorable. Zacks highlighted McKesson as a long-term momentum and growth stock, while Wall Street’s average recommendation remains bullish. Its latest reported quarter also exceeded expectations, with EPS of $9.93 and revenue of $105.38 billion.
• Neutral Sentiment: Long-term-return coverage provides context rather than a new catalyst. A review of a decade-long investment illustrates McKesson’s strong historical performance, but it does not directly change current earnings or valuation expectations. If You Invested $1000 in McKesson a Decade Ago

Insider Activity at McKesson

In other McKesson news, Director Bradley Lerman sold 301 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $892.33, for a total value of $268,591.33. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO B Jr sold 111 shares of McKesson stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $891.45, for a total transaction of $98,950.95. Following the sale, the chief accounting officer owned 521 shares in the company, valued at $464,445.45. This represents a 17.56% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.06% of the stock is owned by company insiders.

Institutional Investors Weigh In On McKesson

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new position in McKesson in the 2nd quarter valued at about $8,156,743,000. State Street Corp lifted its stake in shares of McKesson by 0.5% in the fourth quarter. State Street Corp now owns 5,780,179 shares of the company’s stock worth $4,746,118,000 after acquiring an additional 29,660 shares in the last quarter. Bank of America Corp DE lifted its stake in shares of McKesson by 2.4% in the first quarter. Bank of America Corp DE now owns 1,538,726 shares of the company’s stock worth $1,331,552,000 after acquiring an additional 35,916 shares in the last quarter. Arrowstreet Capital Limited Partnership boosted its holdings in McKesson by 6.8% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 1,376,276 shares of the company’s stock valued at $1,128,945,000 after purchasing an additional 87,513 shares during the last quarter. Finally, Swedbank AB grew its stake in McKesson by 13.5% during the 1st quarter. Swedbank AB now owns 1,005,610 shares of the company’s stock valued at $870,215,000 after purchasing an additional 119,327 shares in the last quarter. Hedge funds and other institutional investors own 85.07% of the company’s stock.

McKesson Stock Performance

NYSE MCK opened at $937.65 on Thursday. The firm has a market capitalization of $109.32 billion, a price-to-earnings ratio of 25.09, a PEG ratio of 1.97 and a beta of 0.30. McKesson has a one year low of $723.68 and a one year high of $999.00. The company’s 50 day moving average price is $885.20 and its 200 day moving average price is $833.76.

McKesson (NYSE:MCK) last released its quarterly earnings data on Wednesday, August 5th. The company reported $9.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $9.56 by $0.37. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The company had revenue of $105.38 billion during the quarter, compared to the consensus estimate of $103.88 billion. During the same period in the previous year, the firm earned $8.26 earnings per share. McKesson’s revenue for the quarter was up 7.7% on a year-over-year basis. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. Sell-side analysts forecast that McKesson will post 44.73 EPS for the current fiscal year.

McKesson Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st were issued a $0.94 dividend. The ex-dividend date was Tuesday, September 1st. This represents a $3.76 dividend on an annualized basis and a yield of 0.4%. This is a boost from McKesson’s previous quarterly dividend of $0.82. McKesson’s dividend payout ratio (DPR) is currently 10.06%.

McKesson Company Profile

McKesson Corporation (NYSE:MCK) is a healthcare services and information technology company that distributes pharmaceuticals, specialty drugs, medical supplies and other healthcare products. The company serves pharmacies, hospitals, health systems, physician practices, biopharma manufacturers and other healthcare providers, helping move products from manufacturers to patients and care settings.

McKesson’s principal operations include pharmaceutical distribution, medical-surgical supply distribution and technology-enabled services for pharmacies and providers.