McKesson (NYSE:MCK) Stock Gets Price Target Increase from Leerink Partners

McKesson (NYSE:MCK) had its price target raised by investment analysts at Leerink Partners from $1,030.00 to $1,070.00 in a report released on Wednesday, Benzinga reports. The brokerage currently has an “outperform” rating on the stock. Leerink Partners’ price target would suggest a potential upside of 16.99% from the company’s current price.

Several other brokerages have also recently weighed in on MCK. Robert W. Baird set a $1,015.00 price objective on McKesson in a research note on Thursday, August 6th. UBS Group increased their target price on shares of McKesson from $1,050.00 to $1,080.00 and gave the company a “buy” rating in a report on Thursday, August 6th. Citigroup raised their price target on shares of McKesson from $945.00 to $1,000.00 and gave the company a “buy” rating in a research report on Friday, July 24th. Morgan Stanley set a $977.00 price target on shares of McKesson in a report on Tuesday. Finally, Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $845.00 price objective on shares of McKesson in a research report on Monday, September 14th. Fourteen investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, McKesson presently has a consensus rating of “Moderate Buy” and an average price target of $973.19.

McKesson Stock Performance

MCK traded down $7.09 during midday trading on Wednesday, reaching $914.58. 277,542 shares of the company were exchanged, compared to its average volume of 937,255. The company has a market cap of $106.63 billion, a price-to-earnings ratio of 24.50, a price-to-earnings-growth ratio of 1.82 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 fifty day moving average price is $881.95 and its 200 day moving average price is $832.66.

McKesson (NYSE:MCK) last posted its earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, beating analysts’ consensus estimates of $9.56 by $0.37. The company had revenue of $105.38 billion for the quarter, compared to analyst estimates of $103.88 billion. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%.The company’s revenue for the quarter was up 7.7% on a year-over-year basis. During the same quarter last year, the company 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 44.71 earnings per share for the current fiscal year.

Insider Activity

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 111 shares of the firm’s stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $891.45, for a total value of $98,950.95. Following the completion of the sale, the chief accounting officer directly owned 521 shares of the company’s stock, valued at $464,445.45. This trade represents a 17.56% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradley E. Lerman sold 301 shares of the stock in a transaction on Monday, August 10th. The stock was sold at an average price of $892.33, for a total value of $268,591.33. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.06% of the company’s stock.

Institutional Trading of McKesson

Several hedge funds and other institutional investors have recently modified their holdings of the business. Secure Asset Management LLC raised its position in McKesson by 484.8% in the 2nd quarter. Secure Asset Management LLC now owns 2,123 shares of the company’s stock worth $1,604,000 after purchasing an additional 1,760 shares during the period. Royal London Asset Management Ltd. boosted its position in McKesson by 1.1% during the second quarter. Royal London Asset Management Ltd. now owns 112,241 shares of the company’s stock valued at $84,809,000 after buying an additional 1,216 shares during the period. Benchmark Investment Advisors LLC bought a new position in shares of McKesson during the second quarter valued at about $441,000. Summit Global Investments bought a new position in shares of McKesson during the second quarter valued at about $1,159,000. Finally, One Wealth Advisors LLC purchased a new position in shares of McKesson in the second quarter worth about $1,494,000. Institutional investors own 85.07% of the company’s stock.

Key Headlines Impacting McKesson

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson and CD&R agreed to acquire Option Care Health (NASDAQ: OPCH) for approximately $5.8 billion. The $32.05-per-share cash offer represents a 37% premium and expands McKesson’s exposure to home and alternate-site infusion services. CD&R will own approximately 51%, while McKesson will hold about 49%. CD&R and McKesson Corporation Sign Agreement to Acquire Option Care Health
• Positive Sentiment: McKesson plans to invest approximately $1.4 billion in the transaction. The deal could provide long-term growth and diversification beyond traditional drug distribution, although it remains subject to shareholder and regulatory approvals. McKesson agrees to invest $1.4 billion in Option Care Health
• Positive Sentiment: Leerink Partners raised its price target for McKesson to $1,070 from $1,030, reinforcing the bullish analyst view and implying additional upside from recent trading levels. Leerink Partners Adjusts Price Target on McKesson
• Positive Sentiment: Reports indicated McKesson’s agreement with CVS was extended through 2032, improving visibility into a significant customer relationship and supporting the stock’s recent strength. McKesson stock gains as CVS pact extends to 2032
• Neutral Sentiment: McKesson is among the most-watched stocks on Zacks, but the report primarily discusses whether the shares remain attractive rather than announcing a new fundamental catalyst. Is Most-Watched Stock McKesson Worth Betting on Now?
• Negative Sentiment: Some commentary highlights McKesson’s thin net margin and negative book value, while the Option Care transaction introduces execution, financing and regulatory risks. These concerns could limit upside despite the favorable strategic rationale. McKesson margin and balance-sheet analysis

About McKesson

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.