McKesson (NYSE:MCK) Price Target Raised to $1,070.00

McKesson (NYSE:MCK) had its price target lifted by Leerink Partners from $1,030.00 to $1,070.00 in a research note released on Wednesday,Benzinga reports. They currently have an outperform rating on the stock.

A number of other research firms have also issued reports on MCK. Citigroup raised their price target on shares of McKesson from $945.00 to $1,000.00 and gave the stock a “buy” rating in a research report on Friday, July 24th. Royal Bank Of Canada reiterated a “sector perform” rating and issued a $845.00 price objective on shares of McKesson in a research note on Monday, September 14th. Barclays raised their target price on shares of McKesson from $925.00 to $1,000.00 and gave the stock an “overweight” rating in a report on Wednesday, August 19th. Weiss Ratings upgraded shares of McKesson from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, September 4th. Finally, Morgan Stanley set a $977.00 price target on shares of McKesson in a report on Tuesday. Fifteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $983.29.

McKesson Stock Performance

Shares of MCK stock opened at $937.65 on Wednesday. McKesson has a fifty-two week low of $723.68 and a fifty-two week high of $999.00. The firm has a market capitalization of $109.32 billion, a PE ratio of 25.09, a P/E/G ratio of 1.95 and a beta of 0.30. The stock’s 50-day simple moving average is $885.20 and its 200-day simple moving average is $833.76.

McKesson (NYSE:MCK) last released its earnings results on Wednesday, August 5th. The company reported $9.93 EPS for the quarter, topping analysts’ consensus estimates of $9.56 by $0.37. The firm had revenue of $105.38 billion during the quarter, compared to the consensus estimate 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 was up 7.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $8.26 earnings per share. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. Sell-side analysts forecast that McKesson will post 44.73 earnings per share for the current year.

McKesson Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st were paid a dividend of $0.94 per share. This represents a $3.76 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend was Tuesday, September 1st. This is an increase from McKesson’s previous quarterly dividend of $0.82. McKesson’s dividend payout ratio is currently 10.06%.

Insider Transactions at McKesson

In related news, Director Bradley E. Lerman sold 301 shares of the company’s stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $892.33, for a total value of $268,591.33. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Napoleon B. Rutledge, Jr. sold 111 shares of the stock in a transaction that occurred 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 transaction, the chief accounting officer owned 521 shares in the company, valued at $464,445.45. This represents a 17.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.06% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Tilia Fiduciary Partners Inc. lifted its position in shares of McKesson by 0.6% during the 3rd quarter. Tilia Fiduciary Partners Inc. now owns 5,344 shares of the company’s stock valued at $4,563,000 after buying an additional 30 shares in the last quarter. Jacobs & Co. CA purchased a new stake in McKesson in the 3rd quarter worth $213,000. Schaper Benz & Wise Investment Counsel Inc. WI acquired a new position in McKesson during the third quarter worth $213,000. Capital Advisors Wealth Management LLC raised its position in McKesson by 21.1% during the third quarter. Capital Advisors Wealth Management LLC now owns 436 shares of the company’s stock worth $373,000 after acquiring an additional 76 shares during the period. Finally, GK Wealth Management LLC purchased a new position in McKesson during the third quarter valued at $38,000. 85.07% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting McKesson

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: Analysts raised their outlook. Barclays increased its price target to $1,000, and Leerink Partners initiated or reiterated a Buy rating, reinforcing the view that McKesson can continue to appreciate. McKesson also carries a consensus “Moderate Buy” recommendation. Barclays raised its target for McKesson stock to USD 1,000.00
• Positive Sentiment: McKesson is expanding its specialty healthcare business. The company is partnering with Clayton, Dubilier & Rice to acquire Option Care Health in a transaction valued at approximately $5.8 billion, including debt. The deal would give McKesson greater exposure to home and alternate-site infusion services, potentially adding growth and strategic diversification. McKesson, CD&R to Acquire Option Care Health
• Neutral Sentiment: The acquisition’s valuation is attracting investor scrutiny. Option Care shareholders are being offered $32.05 per share, a 37% premium, which could accelerate growth but also raises questions about price, financing, execution and integration risks. McKesson Joins $5.8 Billion Option Care Health Acquisition
• Positive Sentiment: Momentum and fundamental screens remain favorable. Zacks highlighted McKesson as a long-term momentum and growth stock, while Wall Street’s average recommendation remains bullish. Its latest reported quarter also exceeded expectations, with EPS of $9.93 and revenue of $105.38 billion.
• Neutral Sentiment: Long-term-return coverage provides context rather than a new catalyst. A review of a decade-long investment illustrates McKesson’s strong historical performance, but it does not directly change current earnings or valuation expectations. If You Invested $1000 in McKesson a Decade Ago

McKesson Company Profile

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.