McKesson Corp. (MCK) Downgraded to “Neutral” at Goldman Sachs Group Inc.
Goldman Sachs Group Inc. lowered shares of McKesson Corp. (NYSE:MCK) from a buy rating to a neutral rating in a research note issued to investors on Friday morning. They currently have $189.00 price objective on the stock, down from their previous price objective of $210.00.
Several other equities research analysts also recently commented on the company. Leerink Swann reaffirmed an outperform rating and set a $230.00 target price on shares of McKesson Corp. in a report on Thursday, September 1st. Mizuho upped their target price on McKesson Corp. from $174.00 to $197.00 and gave the company a neutral rating in a report on Thursday, August 11th. JPMorgan Chase & Co. upped their target price on McKesson Corp. from $210.00 to $221.00 and gave the company an overweight rating in a report on Tuesday, August 9th. Zacks Investment Research downgraded McKesson Corp. from a buy rating to a hold rating in a report on Monday, August 1st. Finally, Morgan Stanley upped their target price on McKesson Corp. from $199.00 to $211.00 and gave the company an overweight rating in a report on Thursday, July 28th. Eight analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company’s stock. The stock currently has an average rating of Buy and an average target price of $201.95.
Shares of McKesson Corp. (NYSE:MCK) opened at 165.77 on Friday. The stock’s 50 day moving average price is $189.99 and its 200-day moving average price is $178.58. The stock has a market cap of $37.41 billion, a PE ratio of 17.21 and a beta of 0.95. McKesson Corp. has a one year low of $148.29 and a one year high of $208.03.
McKesson Corp. (NYSE:MCK) last announced its earnings results on Wednesday, July 27th. The company reported $3.50 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $3.33 by $0.17. McKesson Corp. had a return on equity of 31.62% and a net margin of 1.15%. The business earned $49.73 billion during the quarter, compared to analysts’ expectations of $50.32 billion. During the same quarter last year, the business posted $3.14 earnings per share. The company’s quarterly revenue was up 4.6% on a year-over-year basis. On average, equities analysts predict that McKesson Corp. will post $13.66 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Monday, October 3rd. Stockholders of record on Thursday, September 1st will be issued a dividend of $0.28 per share. This represents a $1.12 dividend on an annualized basis and a dividend yield of 0.67%. The ex-dividend date is Tuesday, August 30th. McKesson Corp.’s dividend payout ratio is 11.64%.
In other McKesson Corp. news, CFO James A. Beer sold 5,500 shares of the firm’s stock in a transaction that occurred on Thursday, July 14th. The stock was sold at an average price of $199.00, for a total value of $1,094,500.00. Following the sale, the chief financial officer now owns 12,412 shares of the company’s stock, valued at approximately $2,469,988. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Chairman John H. Hammergren sold 100,500 shares of the firm’s stock in a transaction that occurred on Monday, September 12th. The shares were sold at an average price of $180.77, for a total value of $18,167,385.00. Following the completion of the sale, the chairman now directly owns 100,500 shares in the company, valued at approximately $18,167,385. The disclosure for this sale can be found here. Insiders own 1.15% of the company’s stock.
A number of hedge funds have recently added to or reduced their stakes in MCK. Boston Partners raised its stake in McKesson Corp. by 108.6% in the second quarter. Boston Partners now owns 4,659,692 shares of the company’s stock worth $869,731,000 after buying an additional 2,425,685 shares during the period. Capital Research Global Investors raised its stake in McKesson Corp. by 16.8% in the second quarter. Capital Research Global Investors now owns 9,021,412 shares of the company’s stock worth $1,683,847,000 after buying an additional 1,297,412 shares during the period. Scharf Investments LLC raised its stake in McKesson Corp. by 11,803.7% in the first quarter. Scharf Investments LLC now owns 1,190,016 shares of the company’s stock worth $187,130,000 after buying an additional 1,180,019 shares during the period. Wellington Management Group LLP raised its stake in McKesson Corp. by 9.3% in the first quarter. Wellington Management Group LLP now owns 11,312,022 shares of the company’s stock worth $1,778,816,000 after buying an additional 961,630 shares during the period. Finally, Senator Investment Group LP acquired a new stake in McKesson Corp. during the second quarter worth about $111,990,000. 84.80% of the stock is currently owned by hedge funds and other institutional investors.
About McKesson Corp.
McKesson Corporation (McKesson) is a pharmaceutical distribution services and information technology company. The Company delivers an offering of pharmaceuticals and medical supplies. It operates through two segments: McKesson Distribution Solutions and McKesson Technology Solutions. The Distribution Solutions segment distributes branded and generic pharmaceutical drugs and other healthcare-related products around the world and provides practice management, technology, clinical support and business solutions to community-based oncology and other specialty practices.
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