McKesson (NYSE:MCK) Hits New 1-Year High – Should You Buy?

Shares of McKesson Corporation (NYSE:MCK) hit a new 52-week high on Wednesday . The company traded as high as $999.00 and last traded at $995.05, with a volume of 571708 shares trading hands. The stock had previously closed at $990.95.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. Zacks Research lowered shares of McKesson from a “strong-buy” rating to a “hold” rating in a report on Tuesday, November 25th. Mizuho boosted their price target on shares of McKesson from $880.00 to $885.00 and gave the stock a “neutral” rating in a research note on Thursday, February 5th. TD Cowen increased their price objective on McKesson from $1,000.00 to $1,012.00 and gave the company a “buy” rating in a research note on Thursday, February 5th. Weiss Ratings lowered McKesson from a “buy (a-)” rating to a “buy (b+)” rating in a report on Thursday, February 5th. Finally, Barclays boosted their target price on McKesson from $960.00 to $1,050.00 and gave the stock an “overweight” rating in a research note on Wednesday, February 18th. Thirteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, McKesson presently has an average rating of “Moderate Buy” and a consensus price target of $943.50.

McKesson Trading Up 0.4%

The stock’s fifty day moving average price is $875.61 and its two-hundred day moving average price is $812.05. The firm has a market capitalization of $121.88 billion, a price-to-earnings ratio of 28.62, a price-to-earnings-growth ratio of 1.59 and a beta of 0.38.

McKesson (NYSE:MCK) last posted its quarterly earnings results on Wednesday, February 4th. The company reported $9.34 earnings per share for the quarter, beating analysts’ consensus estimates of $9.19 by $0.15. The company had revenue of $106.16 billion for the quarter, compared to analysts’ expectations of $105.98 billion. McKesson had a negative return on equity of 338.97% and a net margin of 1.09%.McKesson’s quarterly revenue was up 11.4% on a year-over-year basis. During the same period last year, the firm earned $8.03 earnings per share. McKesson has set its FY 2026 guidance at 38.800-39.200 EPS. Analysts anticipate that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Monday, March 2nd will be paid a dividend of $0.82 per share. The ex-dividend date is Monday, March 2nd. This represents a $3.28 annualized dividend and a yield of 0.3%. McKesson’s payout ratio is presently 9.43%.

Insiders Place Their Bets

In other McKesson news, EVP Thomas L. Rodgers sold 276 shares of the stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $816.18, for a total value of $225,265.68. Following the transaction, the executive vice president directly owned 2,268 shares in the company, valued at $1,851,096.24. This represents a 10.85% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Napoleon B. Rutledge, Jr. sold 328 shares of the firm’s stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $955.00, for a total transaction of $313,240.00. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 1,143 shares of company stock valued at $1,046,070. 0.08% of the stock is owned by company insiders.

Hedge Funds Weigh In On McKesson

Several large investors have recently bought and sold shares of MCK. Meiji Yasuda Asset Management Co Ltd. increased its position in shares of McKesson by 0.5% during the fourth quarter. Meiji Yasuda Asset Management Co Ltd. now owns 2,262 shares of the company’s stock worth $1,855,000 after purchasing an additional 11 shares in the last quarter. Investment Research Partners LLC grew its stake in McKesson by 0.7% during the 4th quarter. Investment Research Partners LLC now owns 1,624 shares of the company’s stock worth $1,332,000 after buying an additional 11 shares during the last quarter. IHT Wealth Management LLC increased its position in McKesson by 0.9% during the fourth quarter. IHT Wealth Management LLC now owns 1,196 shares of the company’s stock worth $981,000 after buying an additional 11 shares during the period. Obsidian Personal Planning Solutions LLC increased its position in McKesson by 2.9% during the third quarter. Obsidian Personal Planning Solutions LLC now owns 426 shares of the company’s stock worth $346,000 after buying an additional 12 shares during the period. Finally, LRI Investments LLC lifted its stake in McKesson by 12.1% in the fourth quarter. LRI Investments LLC now owns 111 shares of the company’s stock valued at $91,000 after buying an additional 12 shares during the last quarter. Institutional investors and hedge funds own 85.07% of the company’s stock.

About McKesson

McKesson Corporation (NYSE: MCK) is a global healthcare services and distribution company that supplies pharmaceuticals, medical-surgical products and health care technology solutions. Founded in 1833 and headquartered in Irving, Texas, McKesson operates across the drug distribution and healthcare services value chain, connecting manufacturers, pharmacies, hospitals and health systems to help manage the movement of medicines and clinical supplies.

The company’s core activities include pharmaceutical wholesale distribution and logistics, specialty pharmacy services, and the provision of medical-surgical supplies to acute and non-acute care providers.