McKesson (NYSE:MCK) Shares Gap Down to $505.00

McKesson Co. (NYSE:MCK)’s stock price gapped down prior to trading on Tuesday . The stock had previously closed at $505.00, but opened at $487.49. McKesson shares last traded at $479.14, with a volume of 869,078 shares.

Analysts Set New Price Targets

A number of equities research analysts recently issued reports on MCK shares. StockNews.com lowered McKesson from a “strong-buy” rating to a “buy” rating in a research note on Friday, August 9th. Barclays upped their target price on McKesson from $596.00 to $616.00 and gave the company an “overweight” rating in a report on Thursday, August 8th. Mizuho upped their price target on shares of McKesson from $540.00 to $570.00 and gave the company a “neutral” rating in a report on Thursday, August 8th. Wells Fargo & Company dropped their target price on McKesson from $576.00 to $535.00 and set an “equal weight” rating on the stock in a report on Friday, September 13th. Finally, Bank of America upped their price target on McKesson from $590.00 to $670.00 and gave the stock a “buy” rating in a research note on Tuesday, June 25th. Three analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $610.93.

McKesson Stock Performance

The stock has a market cap of $63.06 billion, a PE ratio of 21.34, a price-to-earnings-growth ratio of 1.18 and a beta of 0.44. The company’s 50-day moving average price is $558.79 and its 200 day moving average price is $557.07.

McKesson (NYSE:MCK) last released its earnings results on Wednesday, August 7th. The company reported $7.88 EPS for the quarter, beating analysts’ consensus estimates of $7.21 by $0.67. The firm had revenue of $79.28 billion for the quarter, compared to analysts’ expectations of $82.53 billion. McKesson had a negative return on equity of 242.57% and a net margin of 0.94%. The company’s quarterly revenue was up 6.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $7.27 earnings per share. On average, sell-side analysts anticipate that McKesson Co. will post 32.11 earnings per share for the current fiscal year.

McKesson Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, October 1st. Stockholders of record on Monday, September 2nd will be given a $0.71 dividend. The ex-dividend date is Friday, August 30th. This is a boost from McKesson’s previous quarterly dividend of $0.62. This represents a $2.84 dividend on an annualized basis and a dividend yield of 0.59%. McKesson’s payout ratio is 12.69%.

Insider Transactions at McKesson

In other news, CEO Brian S. Tyler sold 3,753 shares of the firm’s stock in a transaction on Thursday, September 5th. The stock was sold at an average price of $561.10, for a total transaction of $2,105,808.30. Following the completion of the transaction, the chief executive officer now directly owns 78,586 shares in the company, valued at $44,094,604.60. The transaction was disclosed in a document filed with the SEC, which is available at this link. Over the last three months, insiders have sold 11,259 shares of company stock valued at $6,635,492. Corporate insiders own 0.11% of the company’s stock.

Institutional Trading of McKesson

Hedge funds and other institutional investors have recently made changes to their positions in the company. SageView Advisory Group LLC acquired a new position in shares of McKesson in the 4th quarter valued at about $710,000. Congress Wealth Management LLC DE raised its holdings in McKesson by 1.8% during the 4th quarter. Congress Wealth Management LLC DE now owns 2,448 shares of the company’s stock worth $1,134,000 after buying an additional 43 shares during the period. Johnson Financial Group Inc. purchased a new stake in shares of McKesson in the fourth quarter worth approximately $163,000. Nations Financial Group Inc. IA ADV acquired a new position in McKesson in the fourth quarter worth approximately $356,000. Finally, Hsbc Holdings PLC lifted its position in shares of McKesson by 7.2% in the fourth quarter. Hsbc Holdings PLC now owns 232,258 shares of the company’s stock worth $107,421,000 after buying an additional 15,660 shares during the last quarter. Hedge funds and other institutional investors own 85.07% of the company’s stock.

McKesson Company Profile

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products.