McKesson (NYSE:MCK) Sets New 12-Month High – Time to Buy?

McKesson Corporation (NYSE:MCK)’s stock price reached a new 52-week high on Friday . The stock traded as high as $869.08 and last traded at $867.64, with a volume of 385497 shares traded. The stock had previously closed at $849.46.

Wall Street Analysts Forecast Growth

MCK has been the topic of a number of recent research reports. Jefferies Financial Group increased their price target on McKesson from $820.00 to $900.00 and gave the stock a “buy” rating in a research report on Monday, October 13th. Cowen restated a “buy” rating on shares of McKesson in a report on Wednesday, September 24th. Wall Street Zen lowered McKesson from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Wells Fargo & Company lifted their price objective on shares of McKesson from $816.00 to $914.00 and gave the company an “equal weight” rating in a research note on Monday, November 10th. Finally, JPMorgan Chase & Co. upped their target price on McKesson from $821.00 to $853.00 and gave the stock an “overweight” rating in a research note on Friday, September 26th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $887.69.

McKesson Price Performance

The firm has a market capitalization of $107.13 billion, a price-to-earnings ratio of 34.61, a PEG ratio of 1.46 and a beta of 0.51. The firm has a 50 day moving average price of $785.37 and a 200-day moving average price of $733.49.

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

McKesson Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 2nd. Stockholders of record on Monday, December 1st will be given a dividend of $0.82 per share. The ex-dividend date is Monday, December 1st. This represents a $3.28 annualized dividend and a dividend yield of 0.4%. McKesson’s payout ratio is currently 10.21%.

Insider Activity at McKesson

In related news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the firm’s stock in a transaction that occurred on Friday, November 7th. The shares were sold at an average price of $861.63, for a total transaction of $283,476.27. Following the transaction, the chief accounting officer owned 328 shares in the company, valued at $282,614.64. This trade represents a 50.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.08% of the company’s stock.

Hedge Funds Weigh In On McKesson

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. GGM Financials LLC purchased a new stake in shares of McKesson during the 3rd quarter worth about $25,000. Solstein Capital LLC raised its holdings in McKesson by 171.4% in the 2nd quarter. Solstein Capital LLC now owns 38 shares of the company’s stock worth $28,000 after acquiring an additional 24 shares during the period. State of Wyoming bought a new position in McKesson in the 2nd quarter worth $29,000. Hopwood Financial Services Inc. acquired a new position in McKesson during the 3rd quarter worth $31,000. Finally, GFG Capital LLC acquired a new stake in shares of McKesson in the second quarter valued at about $30,000. Institutional investors and hedge funds own 85.07% of the company’s stock.

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.