McKesson (NYSE:MCK) Cut to Hold at StockNews.com

McKesson (NYSE:MCK) was downgraded by StockNews.com from a “buy” rating to a “hold” rating in a report released on Friday.

A number of other equities analysts have also weighed in on the company. Mizuho boosted their price objective on McKesson from $540.00 to $570.00 and gave the stock a “neutral” rating in a research note on Thursday, August 8th. Wells Fargo & Company lowered their price target on shares of McKesson from $576.00 to $535.00 and set an “equal weight” rating on the stock in a research report on Friday, September 13th. Robert W. Baird reissued a “neutral” rating and issued a $531.00 price objective (down previously from $603.00) on shares of McKesson in a report on Tuesday. Barclays lifted their target price on shares of McKesson from $596.00 to $616.00 and gave the stock an “overweight” rating in a research note on Thursday, August 8th. Finally, Argus increased their price target on shares of McKesson from $570.00 to $670.00 and gave the company a “buy” rating in a research note on Monday, June 24th. Five equities research analysts have rated the stock with a hold rating and twelve have given a buy rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $613.36.

McKesson Stock Performance

Shares of MCK traded up $9.29 during trading hours on Friday, hitting $488.35. 1,001,614 shares of the stock were exchanged, compared to its average volume of 801,325. The stock’s 50-day moving average price is $552.67 and its two-hundred day moving average price is $555.67. McKesson has a 12-month low of $431.35 and a 12-month high of $637.51. The company has a market cap of $63.45 billion, a price-to-earnings ratio of 21.82, a price-to-earnings-growth ratio of 1.18 and a beta of 0.44.

McKesson (NYSE:MCK) last released its earnings results on Wednesday, August 7th. The company reported $7.88 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.21 by $0.67. McKesson had a net margin of 0.94% and a negative return on equity of 242.57%. The business had revenue of $79.28 billion during the quarter, compared to analyst estimates of $82.53 billion. During the same quarter in the prior year, the firm earned $7.27 earnings per share. The company’s revenue for the quarter was up 6.4% compared to the same quarter last year. On average, research analysts expect that McKesson will post 32.07 earnings per share for the current year.

Insider Transactions at McKesson

In related news, CEO Brian S. Tyler sold 3,753 shares of the firm’s stock in a transaction that occurred on Wednesday, July 3rd. The stock was sold at an average price of $580.92, for a total transaction of $2,180,192.76. Following the transaction, the chief executive officer now owns 86,092 shares in the company, valued at approximately $50,012,564.64. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. In the last 90 days, 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 Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. Swedbank AB acquired a new stake in McKesson during the 1st quarter worth approximately $669,326,000. Bessemer Group Inc. grew its position in McKesson by 3,621.7% in the 1st quarter. Bessemer Group Inc. now owns 349,395 shares of the company’s stock valued at $187,572,000 after buying an additional 340,007 shares during the last quarter. Bristol Gate Capital Partners Inc. acquired a new position in McKesson in the 1st quarter valued at $97,510,000. Third Point LLC purchased a new position in McKesson during the 4th quarter worth $76,392,000. Finally, American Century Companies Inc. lifted its stake in shares of McKesson by 134.6% in the 2nd quarter. American Century Companies Inc. now owns 220,619 shares of the company’s stock worth $128,850,000 after acquiring an additional 126,567 shares during the period. 85.07% of the stock is currently owned by institutional investors and hedge funds.

About McKesson

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.