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

McKesson (NYSE:MCK) had its price target cut by Bank of America from $680.00 to $650.00 in a research note issued to investors on Monday,Benzinga reports. They currently have a buy rating on the stock.

MCK has been the topic of several other research reports. Leerink Partners reduced their price target on shares of McKesson from $665.00 to $630.00 and set an “outperform” rating on the stock in a research report on Monday, October 7th. Deutsche Bank Aktiengesellschaft decreased their price target on shares of McKesson from $623.00 to $579.00 and set a “buy” rating on the stock in a research note on Wednesday, September 25th. Citigroup boosted their price objective on shares of McKesson from $630.00 to $713.00 and gave the stock a “buy” rating in a research report on Wednesday, November 13th. StockNews.com upgraded McKesson from a “hold” rating to a “buy” rating in a research report on Wednesday, November 6th. Finally, Morgan Stanley boosted their target price on McKesson from $612.00 to $642.00 and gave the stock an “overweight” rating in a research report on Tuesday, December 17th. Two equities research analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $648.71.

McKesson Stock Up 0.7 %

Shares of MCK stock opened at $589.60 on Monday. The company has a market capitalization of $74.84 billion, a P/E ratio of 30.53, a P/E/G ratio of 1.25 and a beta of 0.49. McKesson has a 12-month low of $464.42 and a 12-month high of $637.51. The firm has a 50-day moving average price of $589.65 and a 200 day moving average price of $561.45.

McKesson (NYSE:MCK) last posted its earnings results on Wednesday, November 6th. The company reported $7.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.88 by $0.19. McKesson had a net margin of 0.77% and a negative return on equity of 207.50%. The company had revenue of $93.65 billion during the quarter, compared to analysts’ expectations of $89.33 billion. During the same quarter in the previous year, the company posted $6.23 earnings per share. McKesson’s quarterly revenue was up 21.3% compared to the same quarter last year. As a group, research analysts expect that McKesson will post 32.73 earnings per share for the current year.

McKesson Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, January 2nd. Shareholders of record on Monday, December 2nd were issued a dividend of $0.71 per share. The ex-dividend date of this dividend was Monday, December 2nd. This represents a $2.84 annualized dividend and a yield of 0.48%. McKesson’s dividend payout ratio is presently 14.71%.

Insiders Place Their Bets

In related news, EVP Leann B. Smith sold 579 shares of the stock in a transaction that occurred 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 directly owns 864 shares of the company’s stock, valued at approximately $494,890.56. This represents a 40.12 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 0.11% of the company’s stock.

Hedge Funds Weigh In On McKesson

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Wolff Wiese Magana LLC grew its stake in shares of McKesson by 742.9% during the 3rd quarter. Wolff Wiese Magana LLC now owns 59 shares of the company’s stock worth $29,000 after acquiring an additional 52 shares in the last quarter. MidAtlantic Capital Management Inc. acquired a new stake in McKesson in the third quarter valued at $29,000. RPg Family Wealth Advisory LLC bought a new position in McKesson during the third quarter worth about $31,000. ORG Wealth Partners LLC acquired a new position in McKesson during the third quarter worth approximately $40,000. Finally, Centennial Bank AR acquired a new stake in shares of McKesson in the second quarter valued at approximately $53,000. 85.07% of the stock is owned by institutional investors and hedge funds.

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.