McKesson (NYSE:MCK) Stock Rating Lowered by Wall Street Zen

Wall Street Zen downgraded shares of McKesson (NYSE:MCK) from a strong-buy rating to a buy rating in a research report sent to investors on Saturday morning.

MCK has been the topic of several other reports. UBS Group raised their target price on McKesson from $708.00 to $805.00 and gave the company a “buy” rating in a report on Tuesday, April 29th. Bank of America lifted their price objective on McKesson from $755.00 to $800.00 and gave the stock a “buy” rating in a report on Friday, May 9th. Cfra Research downgraded McKesson from a “moderate buy” rating to a “hold” rating in a report on Friday, April 4th. Wells Fargo & Company set a $766.00 price objective on McKesson and gave the stock an “equal weight” rating in a report on Tuesday, June 3rd. Finally, Mizuho lifted their price objective on McKesson from $630.00 to $690.00 and gave the stock a “neutral” rating in a report on Thursday, April 3rd. Three investment analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $694.38.

McKesson Stock Performance

Shares of NYSE:MCK opened at $719.53 on Friday. The company has a market cap of $90.02 billion, a P/E ratio of 32.95, a PEG ratio of 1.29 and a beta of 0.49. McKesson has a one year low of $464.42 and a one year high of $732.99. The business’s 50-day simple moving average is $704.62 and its 200 day simple moving average is $645.26.

McKesson (NYSE:MCK) last announced its earnings results on Thursday, May 8th. The company reported $10.12 EPS for the quarter, beating the consensus estimate of $9.83 by $0.29. The business had revenue of $90.82 billion for the quarter, compared to the consensus estimate of $94 billion. McKesson had a negative return on equity of 181.26% and a net margin of 0.82%. The company’s revenue was up 18.9% on a year-over-year basis. During the same period last year, the business posted $6.18 EPS. Analysts predict that McKesson will post 32.77 earnings per share for the current year.

McKesson Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, July 1st. Stockholders of record on Monday, June 2nd will be issued a $0.71 dividend. The ex-dividend date is Monday, June 2nd. This represents a $2.84 dividend on an annualized basis and a dividend yield of 0.39%. McKesson’s dividend payout ratio (DPR) is 10.99%.

Insider Activity

In related news, CFO Britt J. Vitalone sold 6,336 shares of the business’s stock in a transaction that occurred on Thursday, May 22nd. The stock was sold at an average price of $717.30, for a total transaction of $4,544,812.80. Following the completion of the transaction, the chief financial officer now owns 14,760 shares in the company, valued at $10,587,348. The trade was a 30.03% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Brian S. Tyler sold 19,370 shares of the business’s stock in a transaction that occurred on Friday, June 6th. The shares were sold at an average price of $705.93, for a total value of $13,673,864.10. Following the transaction, the chief executive officer now owns 51,243 shares of the company’s stock, valued at $36,173,970.99. This represents a 27.43% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 33,117 shares of company stock worth $23,526,451. 0.11% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. CBIZ Investment Advisory Services LLC boosted its position in McKesson by 1,366.7% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company’s stock valued at $30,000 after purchasing an additional 41 shares during the period. Capital A Wealth Management LLC acquired a new position in McKesson during the 4th quarter valued at approximately $26,000. Bank of Jackson Hole Trust boosted its position in McKesson by 64.3% during the 1st quarter. Bank of Jackson Hole Trust now owns 46 shares of the company’s stock valued at $29,000 after purchasing an additional 18 shares during the period. Millstone Evans Group LLC acquired a new position in McKesson during the 4th quarter valued at approximately $28,000. Finally, Saudi Central Bank acquired a new position in McKesson during the 1st quarter worth $34,000. Institutional investors and hedge funds 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.