McKesson (NYSE:MCK) Trading Down 5.6% Following Weak Earnings

McKesson Co. (NYSE:MCK) shares dropped 5.6% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $575.71 and last traded at $572.98. Approximately 91,597 shares traded hands during mid-day trading, a decline of 87% from the average daily volume of 689,735 shares. The stock had previously closed at $606.90.

The company reported $8.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $8.60 by ($0.57). McKesson had a negative return on equity of 207.50% and a net margin of 0.77%.

McKesson Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, April 1st. Investors of record on Monday, March 3rd will be issued a dividend of $0.71 per share. The ex-dividend date is Monday, March 3rd. This represents a $2.84 annualized dividend and a dividend yield of 0.49%. McKesson’s payout ratio is 14.71%.

Wall Street Analysts Forecast Growth

Several research firms have commented on MCK. Evercore ISI raised their price objective on McKesson from $560.00 to $680.00 and gave the company an “outperform” rating in a research report on Thursday, November 7th. Bank of America reduced their price target on McKesson from $680.00 to $650.00 and set a “buy” rating on the stock in a research report on Monday, January 6th. StockNews.com raised shares of McKesson from a “hold” rating to a “buy” rating in a research note on Wednesday, November 6th. Citigroup decreased their price objective on shares of McKesson from $713.00 to $677.00 and set a “buy” rating for the company in a research report on Friday, January 10th. Finally, Morgan Stanley raised their target price on McKesson from $612.00 to $642.00 and gave the company an “overweight” rating in a research note on Tuesday, December 17th. Two research analysts have rated the stock with a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $646.14.

Insiders Place Their Bets

In related news, EVP Leann B. Smith sold 579 shares of the business’s stock in a transaction that occurred on Thursday, January 2nd. The stock was sold at an average price of $572.79, for a total transaction of $331,645.41. Following the completion of the transaction, the executive vice president now owns 864 shares in the company, valued at $494,890.56. The trade was a 40.12 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.11% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On McKesson

A number of hedge funds have recently added to or reduced their stakes in MCK. Wolff Wiese Magana LLC increased its holdings in shares of McKesson by 742.9% during the third quarter. Wolff Wiese Magana LLC now owns 59 shares of the company’s stock valued at $29,000 after purchasing an additional 52 shares during the period. MidAtlantic Capital Management Inc. bought a new position in McKesson in the 3rd quarter valued at about $29,000. RPg Family Wealth Advisory LLC acquired a new position in McKesson during the 3rd quarter valued at about $31,000. Synergy Asset Management LLC bought a new stake in shares of McKesson during the 4th quarter worth about $32,000. Finally, Crews Bank & Trust bought a new position in shares of McKesson in the fourth quarter valued at approximately $33,000. 85.07% of the stock is currently owned by institutional investors.

McKesson Stock Down 3.8 %

The firm has a market cap of $74.14 billion, a price-to-earnings ratio of 30.16, a price-to-earnings-growth ratio of 1.29 and a beta of 0.52. The stock’s 50 day moving average is $589.61 and its 200 day moving average is $562.56.

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.