McKesson (MCK) Downgraded by ValuEngine to Strong Sell

ValuEngine lowered shares of McKesson (NYSE:MCK) from a sell rating to a strong sell rating in a research note issued to investors on Friday morning.

Several other brokerages have also recently weighed in on MCK. Robert W. Baird cut McKesson from an outperform rating to a neutral rating in a report on Friday, July 20th. Citigroup lowered their target price on McKesson from $160.00 to $2.86 and set a buy rating on the stock in a report on Friday, July 20th. Royal Bank of Canada restated a hold rating and set a $152.00 target price on shares of McKesson in a report on Friday, July 27th. Jefferies Financial Group restated a buy rating and set a $160.00 target price on shares of McKesson in a report on Friday, July 27th. Finally, JPMorgan Chase & Co. lowered their target price on McKesson from $181.00 to $160.00 and set an overweight rating on the stock in a report on Friday, July 27th. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and eight have given a buy rating to the stock. The stock currently has a consensus rating of Hold and a consensus price target of $150.26.

Shares of McKesson stock opened at $126.19 on Friday. The company has a market cap of $24.21 billion, a PE ratio of 10.00, a P/E/G ratio of 1.41 and a beta of 1.05. McKesson has a 1-year low of $117.19 and a 1-year high of $178.86. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.56 and a current ratio of 0.99.

McKesson (NYSE:MCK) last issued its earnings results on Thursday, October 25th. The company reported $3.60 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $3.28 by $0.32. The business had revenue of $53.08 billion for the quarter, compared to analysts’ expectations of $53.56 billion. McKesson had a return on equity of 26.55% and a net margin of 0.06%. As a group, analysts expect that McKesson will post 13.41 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, January 2nd. Investors of record on Monday, December 3rd will be issued a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a yield of 1.24%. The ex-dividend date is Friday, November 30th. McKesson’s dividend payout ratio is presently 12.36%.

In related news, Director N Anthony Coles sold 1,350 shares of the company’s stock in a transaction that occurred on Friday, August 31st. The stock was sold at an average price of $128.69, for a total value of $173,731.50. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 0.87% of the company’s stock.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MCK. Xact Kapitalforvaltning AB lifted its holdings in McKesson by 4.2% in the second quarter. Xact Kapitalforvaltning AB now owns 44,279 shares of the company’s stock valued at $5,907,000 after acquiring an additional 1,803 shares during the last quarter. Calamos Advisors LLC raised its position in McKesson by 13.6% in the second quarter. Calamos Advisors LLC now owns 28,597 shares of the company’s stock valued at $3,815,000 after purchasing an additional 3,426 shares during the period. Westpac Banking Corp raised its position in McKesson by 3.3% in the second quarter. Westpac Banking Corp now owns 89,342 shares of the company’s stock valued at $11,918,000 after purchasing an additional 2,843 shares during the period. World Asset Management Inc raised its position in McKesson by 2.8% in the second quarter. World Asset Management Inc now owns 14,154 shares of the company’s stock valued at $1,888,000 after purchasing an additional 384 shares during the period. Finally, Amalgamated Bank raised its position in McKesson by 4.1% in the second quarter. Amalgamated Bank now owns 27,252 shares of the company’s stock valued at $3,635,000 after purchasing an additional 1,084 shares during the period. Hedge funds and other institutional investors own 89.97% of the company’s stock.

About McKesson

McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. It operates in three segments: U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions, and Medical-Surgical Solutions. The company distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs, as well as other healthcare-related products; and offers practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices.

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Analyst Recommendations for McKesson (NYSE:MCK)

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