Bank of America Cuts McKesson (NYSE:MCK) Price Target to $650.00

McKesson (NYSE:MCK) had its price target reduced by Bank of America from $680.00 to $650.00 in a research report report published on Monday morning,Benzinga reports. Bank of America currently has a buy rating on the stock.

Other equities research analysts have also recently issued reports about the company. Robert W. Baird upgraded McKesson from a “neutral” rating to an “outperform” rating and upped their target price for the stock from $531.00 to $688.00 in a research note on Thursday, November 7th. Deutsche Bank Aktiengesellschaft lowered their target price on McKesson from $623.00 to $579.00 and set a “buy” rating for the company in a report on Wednesday, September 25th. Evercore ISI raised their price target on shares of McKesson from $560.00 to $680.00 and gave the company an “outperform” rating in a research note on Thursday, November 7th. Leerink Partners cut their price objective on McKesson from $665.00 to $630.00 and set an “outperform” rating on the stock in a research note on Monday, October 7th. Finally, Wells Fargo & Company lifted their target price on shares of McKesson from $535.00 to $641.00 and gave the stock an “equal weight” rating in a research note on Friday, December 13th. Two investment analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $648.71.

McKesson Stock Performance

NYSE:MCK opened at $589.60 on Monday. The firm has a market cap of $74.84 billion, a price-to-earnings ratio of 30.53, a P/E/G ratio of 1.25 and a beta of 0.49. McKesson has a 52 week low of $464.42 and a 52 week high of $637.51. The firm’s 50-day simple moving average is $589.65 and its 200 day simple moving average is $561.45.

McKesson (NYSE:MCK) last released its quarterly earnings results on Wednesday, November 6th. The company reported $7.07 earnings per share for the quarter, beating analysts’ consensus estimates of $6.88 by $0.19. The company had revenue of $93.65 billion during the quarter, compared to the consensus estimate of $89.33 billion. McKesson had a net margin of 0.77% and a negative return on equity of 207.50%. The firm’s quarterly revenue was up 21.3% on a year-over-year basis. During the same period in the previous year, the business earned $6.23 earnings per share. Sell-side analysts anticipate that McKesson will post 32.73 EPS for the current year.

McKesson Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, January 2nd. Shareholders of record on Monday, December 2nd were paid a dividend of $0.71 per share. The ex-dividend date was Monday, December 2nd. This represents a $2.84 dividend on an annualized basis and a yield of 0.48%. McKesson’s dividend payout ratio (DPR) is currently 14.71%.

Insider Transactions at McKesson

In related news, EVP Leann B. Smith sold 579 shares of the company’s stock in a transaction on Thursday, January 2nd. The stock was sold at an average price of $572.79, for a total transaction of $331,645.41. Following the completion of the sale, the executive vice president now owns 864 shares in the company, valued at approximately $494,890.56. This represents a 40.12 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Company insiders own 0.11% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Private Advisor Group LLC boosted its stake in shares of McKesson by 4.2% in the 2nd quarter. Private Advisor Group LLC now owns 11,467 shares of the company’s stock worth $6,697,000 after buying an additional 462 shares during the last quarter. Cullen Frost Bankers Inc. grew its stake in McKesson by 0.9% in the 2nd quarter. Cullen Frost Bankers Inc. now owns 2,600 shares of the company’s stock valued at $1,519,000 after purchasing an additional 22 shares during the period. Los Angeles Capital Management LLC increased its position in shares of McKesson by 254.0% during the 2nd quarter. Los Angeles Capital Management LLC now owns 2,418 shares of the company’s stock valued at $1,412,000 after purchasing an additional 1,735 shares during the last quarter. Asset Dedication LLC boosted its holdings in shares of McKesson by 201.2% in the 2nd quarter. Asset Dedication LLC now owns 973 shares of the company’s stock worth $568,000 after buying an additional 650 shares during the last quarter. Finally, Quest Partners LLC grew its position in McKesson by 402.4% during the second quarter. Quest Partners LLC now owns 4,406 shares of the company’s stock valued at $2,573,000 after buying an additional 3,529 shares during the period. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

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.