McKesson (NYSE:MCK) Stock Price Expected to Rise, Morgan Stanley Analyst Says

McKesson (NYSE:MCK) had its price objective upped by stock analysts at Morgan Stanley from $857.00 to $916.00 in a note issued to investors on Thursday,Benzinga reports. The firm presently has an “overweight” rating on the stock. Morgan Stanley’s target price points to a potential upside of 7.67% from the company’s previous close.

Several other equities analysts also recently commented on the stock. Citigroup increased their target price on shares of McKesson from $820.00 to $860.00 and gave the stock a “buy” rating in a research report on Wednesday, September 24th. TD Cowen upped their price target on McKesson from $830.00 to $864.00 and gave the stock a “buy” rating in a research note on Wednesday, September 24th. Zacks Research raised McKesson from a “hold” rating to a “strong-buy” rating in a research note on Monday, October 27th. Cowen reaffirmed a “buy” rating on shares of McKesson in a research report on Wednesday, September 24th. Finally, Weiss Ratings reiterated a “buy (b)” rating on shares of McKesson in a report on Wednesday, October 8th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $880.15.

McKesson Price Performance

MCK traded down $7.84 during midday trading on Thursday, hitting $850.77. 619,369 shares of the company’s stock traded hands, compared to its average volume of 848,315. The company has a market cap of $105.82 billion, a PE ratio of 33.92, a price-to-earnings-growth ratio of 1.46 and a beta of 0.51. The stock’s fifty day simple moving average is $757.54 and its 200-day simple moving average is $724.05. McKesson has a one year low of $558.13 and a one year high of $867.63.

McKesson (NYSE:MCK) last posted its earnings results on Wednesday, November 5th. The company reported $9.86 EPS for the quarter, topping the consensus estimate of $8.84 by $1.02. The company had revenue of $103.15 billion during the quarter, compared to the consensus estimate of $103.80 billion. McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The company’s revenue for the quarter was up 10.2% compared to the same quarter last year. During the same period in the previous year, the firm posted $7.07 earnings per share. On average, research analysts expect that McKesson will post 32.77 EPS for the current year.

Insider Buying and Selling

In other news, CEO Brian S. Tyler sold 11,930 shares of the company’s stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the completion of the transaction, the chief executive officer directly owned 4,012 shares in the company, valued at $2,830,987.56. The trade was a 74.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 0.08% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. IAM Advisory LLC lifted its holdings in shares of McKesson by 0.3% during the 3rd quarter. IAM Advisory LLC now owns 3,908 shares of the company’s stock worth $3,019,000 after acquiring an additional 13 shares during the period. PDS Planning Inc increased its stake in McKesson by 1.1% in the third quarter. PDS Planning Inc now owns 1,209 shares of the company’s stock valued at $934,000 after acquiring an additional 13 shares during the period. Berkshire Asset Management LLC PA raised its position in McKesson by 4.6% in the third quarter. Berkshire Asset Management LLC PA now owns 294 shares of the company’s stock worth $227,000 after purchasing an additional 13 shares in the last quarter. MassMutual Private Wealth & Trust FSB lifted its stake in McKesson by 1.6% during the second quarter. MassMutual Private Wealth & Trust FSB now owns 863 shares of the company’s stock worth $632,000 after purchasing an additional 14 shares during the period. Finally, Cardinal Point Capital Management ULC lifted its stake in McKesson by 2.2% during the second quarter. Cardinal Point Capital Management ULC now owns 645 shares of the company’s stock worth $473,000 after purchasing an additional 14 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.