StockNews.com Downgrades McKesson (NYSE:MCK) to Buy

StockNews.com downgraded shares of McKesson (NYSE:MCK - Free Report) from a strong-buy rating to a buy rating in a research note published on Friday.

A number of other equities analysts also recently issued reports on the company. Robert W. Baird raised McKesson from a "neutral" rating to an "outperform" rating and increased their target price for the stock from $531.00 to $688.00 in a research note on Thursday, November 7th. Evercore ISI increased their target price on McKesson from $650.00 to $675.00 and gave the stock an "outperform" rating in a research note on Thursday, February 6th. Mizuho assumed coverage on McKesson in a report on Wednesday, December 4th. They issued a "neutral" rating and a $630.00 price target on the stock. Baird R W upgraded McKesson from a "hold" rating to a "strong-buy" rating in a report on Thursday, November 7th. Finally, Wells Fargo & Company upped their price target on McKesson from $535.00 to $641.00 and gave the stock an "equal weight" rating in a report on Friday, December 13th. Two analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat.com, McKesson currently has a consensus rating of "Moderate Buy" and a consensus price target of $645.79.

McKesson Price Performance

Shares of MCK stock traded down $8.65 during trading hours on Friday, reaching $593.82. 499,287 shares of the company's stock were exchanged, compared to its average volume of 765,241. The company has a market cap of $75.38 billion, a P/E ratio of 27.19, a price-to-earnings-growth ratio of 1.30 and a beta of 0.52. The company's 50 day moving average is $587.26 and its two-hundred day moving average is $562.38. McKesson has a 1 year low of $464.42 and a 1 year high of $637.51.

McKesson (NYSE:MCK - Get Free Report) last issued its earnings results on Wednesday, February 5th. The company reported $8.03 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $8.60 by ($0.57). McKesson had a negative return on equity of 181.26% and a net margin of 0.82%. As a group, analysts predict that McKesson will post 32.69 EPS for the current fiscal year.

McKesson Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Monday, March 3rd will be paid a dividend of $0.71 per share. This represents a $2.84 dividend on an annualized basis and a dividend yield of 0.48%. The ex-dividend date of this dividend is Monday, March 3rd. McKesson's dividend payout ratio is presently 13.00%.

Insiders Place Their Bets

In other McKesson news, EVP Leann B. Smith sold 579 shares of the stock in a transaction on Monday, December 9th. The stock was sold at an average price of $602.81, for a total transaction of $349,026.99. Following the transaction, the executive vice president now owns 1,443 shares of the company's stock, valued at $869,854.83. This represents a 28.64 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Insiders have sold a total of 1,346 shares of company stock valued at $795,275 in the last quarter. 0.11% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in MCK. Millstone Evans Group LLC purchased a new position in shares of McKesson in the 4th quarter worth $28,000. Synergy Asset Management LLC purchased a new position in shares of McKesson in the 4th quarter worth $32,000. MidAtlantic Capital Management Inc. purchased a new position in shares of McKesson in the 3rd quarter worth $29,000. Crews Bank & Trust purchased a new position in shares of McKesson in the 4th quarter worth $33,000. Finally, Wolff Wiese Magana LLC raised its position in shares of McKesson by 742.9% in the 3rd quarter. Wolff Wiese Magana LLC now owns 59 shares of the company's stock worth $29,000 after buying an additional 52 shares during the period. Hedge funds and other institutional investors 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.