McKesson (NYSE:MCK) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Monday.
According to Zacks, “McKesson has had a favorable run on the bourses over the last three months. Apart from the company’s balanced segmental and geographic show, we are upbeat about the recent acquisition of RxCrossroads which should strengthen the company’s foothold in pharmaceutical and biotechnology space. Among other buyouts, the purchase of retailer Well.ca is expected to bring online commerce capabilities and digital experience to McKesson Canada's retail assets. The company’s strong guidance for fiscal 2018 holds promise. McKesson has had an impressive run on the bourse in the last three months. On the flipside, stiff competition, currency headwind, reimbursement issues remain challenges. Pricing pressure in the independent retail pharmacy channel is a headwind. Particularly, McKesson’s sell-side pricing environment continues to remain competitive with less pricing variability.”
A number of other analysts have also weighed in on the stock. Credit Suisse Group restated a “sell” rating and set a $130.00 target price on shares of McKesson in a research note on Friday. Mizuho restated a “neutral” rating and set a $179.00 target price (down from $186.00) on shares of McKesson in a research note on Friday. Jefferies Group upgraded shares of McKesson from a “hold” rating to a “buy” rating and set a $205.00 target price on the stock in a research note on Wednesday, January 24th. Needham & Company LLC increased their price target on shares of McKesson from $173.00 to $180.00 and gave the company a “buy” rating in a research note on Tuesday, January 23rd. Finally, Robert W. Baird reiterated a “buy” rating and issued a $200.00 price target on shares of McKesson in a research note on Wednesday, January 17th. Two equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and ten have assigned a buy rating to the company. McKesson presently has an average rating of “Hold” and an average target price of $178.97.
McKesson (NYSE MCK) traded down $3.11 during mid-day trading on Monday, hitting $156.10. 966,380 shares of the company were exchanged, compared to its average volume of 1,749,645. The company has a debt-to-equity ratio of 0.63, a current ratio of 1.07 and a quick ratio of 0.61. McKesson has a 12-month low of $133.82 and a 12-month high of $178.86. The stock has a market capitalization of $32,450.00, a price-to-earnings ratio of 6.91, a price-to-earnings-growth ratio of 1.45 and a beta of 1.22.
McKesson (NYSE:MCK) last released its earnings results on Thursday, February 1st. The company reported $3.41 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.92 by $0.49. McKesson had a net margin of 2.34% and a return on equity of 22.98%. The firm had revenue of $53.62 billion for the quarter, compared to analyst estimates of $51.98 billion. During the same period in the prior year, the firm earned $3.04 earnings per share. The business’s quarterly revenue was up 7.0% compared to the same quarter last year. sell-side analysts forecast that McKesson will post 12.69 earnings per share for the current fiscal year.
In other McKesson news, Chairman John H. Hammergren sold 65,000 shares of the stock in a transaction that occurred on Thursday, December 14th. The shares were sold at an average price of $160.00, for a total value of $10,400,000.00. The sale was disclosed in a document filed with the SEC, which is available through this link. Corporate insiders own 1.20% of the company’s stock.
Several institutional investors and hedge funds have recently made changes to their positions in the company. Cypress Capital Group grew its position in shares of McKesson by 0.3% during the second quarter. Cypress Capital Group now owns 3,588 shares of the company’s stock worth $590,000 after acquiring an additional 10 shares during the last quarter. WFG Advisors LP grew its position in shares of McKesson by 5.0% during the second quarter. WFG Advisors LP now owns 859 shares of the company’s stock worth $141,000 after acquiring an additional 41 shares during the last quarter. Security National Bank of Sioux City Iowa IA grew its position in shares of McKesson by 1.9% during the second quarter. Security National Bank of Sioux City Iowa IA now owns 7,360 shares of the company’s stock worth $1,211,000 after acquiring an additional 135 shares during the last quarter. Earnest Partners LLC grew its position in shares of McKesson by 5.8% during the second quarter. Earnest Partners LLC now owns 2,464 shares of the company’s stock worth $405,000 after acquiring an additional 136 shares during the last quarter. Finally, Security National Bank of SO Dak grew its position in shares of McKesson by 3.1% during the second quarter. Security National Bank of SO Dak now owns 5,461 shares of the company’s stock worth $899,000 after acquiring an additional 165 shares during the last quarter. Institutional investors and hedge funds own 88.03% of the company’s stock.
McKesson Company Profile
McKesson Corporation is a healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology company. The Company provides medicines, medical products and healthcare services by partnering with pharmaceutical manufacturers, providers, pharmacies, governments and other organizations in healthcare.
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