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

McKesson Co. (NYSE:MCK - Get Free Report)'s share price hit a new 52-week high on Friday . The company traded as high as $672.00 and last traded at $665.41, with a volume of 16398 shares traded. The stock had previously closed at $665.67.

Wall Street Analysts Forecast Growth

MCK has been the subject of several recent analyst reports. Citigroup decreased their target price on McKesson from $713.00 to $677.00 and set a "buy" rating for the company in a research note on Friday, January 10th. Evercore ISI increased their price target on McKesson from $650.00 to $675.00 and gave the company an "outperform" rating in a research report on Thursday, February 6th. Bank of America dropped their price target on McKesson from $680.00 to $650.00 and set a "buy" rating on the stock in a report on Monday, January 6th. StockNews.com lowered McKesson from a "strong-buy" rating to a "buy" rating in a report on Friday, February 14th. Finally, Mizuho began coverage on shares of McKesson in a report on Wednesday, December 4th. They issued a "neutral" rating and a $630.00 price target on the stock. Two investment analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $649.36.

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McKesson Stock Up 0.4 %

The company has a market capitalization of $84.72 billion, a PE ratio of 30.91, a price-to-earnings-growth ratio of 1.29 and a beta of 0.52. The stock's fifty day moving average price is $625.19 and its two-hundred day moving average price is $580.97.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results on Wednesday, February 5th. The company reported $8.03 EPS for the quarter, missing analysts' consensus estimates of $8.60 by ($0.57). McKesson had a net margin of 0.82% and a negative return on equity of 181.26%. On average, equities research analysts forecast that McKesson Co. will post 32.77 EPS for the current year.

McKesson Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 1st. Investors of record on Monday, March 3rd will be given a dividend of $0.71 per share. This represents a $2.84 annualized dividend and a yield of 0.42%. The ex-dividend date of this dividend is Monday, March 3rd. McKesson's dividend payout ratio (DPR) is 13.00%.

Insider Activity at McKesson

In other news, EVP Leann B. Smith sold 188 shares of the stock in a transaction on Wednesday, February 12th. The stock was sold at an average price of $609.59, for a total transaction of $114,602.92. Following the transaction, the executive vice president now directly owns 1,051 shares of the company's stock, valued at $640,679.09. This represents a 15.17 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Brian S. Tyler sold 8,961 shares of the company's stock in a transaction that occurred on Friday, February 14th. The shares were sold at an average price of $600.66, for a total transaction of $5,382,514.26. Following the sale, the chief executive officer now directly owns 69,625 shares of the company's stock, valued at approximately $41,820,952.50. This represents a 11.40 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 18,689 shares of company stock valued at $11,187,351. 0.11% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On McKesson

Institutional investors have recently added to or reduced their stakes in the stock. Healthcare of Ontario Pension Plan Trust Fund boosted its holdings in shares of McKesson by 20.4% during the 3rd quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 554 shares of the company's stock valued at $274,000 after purchasing an additional 94 shares during the last quarter. Public Sector Pension Investment Board lifted its position in shares of McKesson by 18.8% in the third quarter. Public Sector Pension Investment Board now owns 5,678 shares of the company's stock worth $2,807,000 after buying an additional 900 shares in the last quarter. Cobblestone Capital Advisors LLC NY boosted its stake in McKesson by 3.2% during the third quarter. Cobblestone Capital Advisors LLC NY now owns 1,630 shares of the company's stock valued at $806,000 after buying an additional 50 shares during the last quarter. Erste Asset Management GmbH purchased a new position in McKesson during the 3rd quarter valued at approximately $764,000. Finally, Benjamin Edwards Inc. raised its holdings in shares of McKesson by 58.9% during the 3rd quarter. Benjamin Edwards Inc. now owns 5,917 shares of the company's stock worth $2,930,000 after acquiring an additional 2,194 shares in the last quarter. 85.07% of the stock is owned by hedge funds and other institutional investors.

McKesson Company Profile

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.