McKesson Corporation (NYSE:MCK) Stock Has Consensus Target Price of $997.12 According to Brokerages

Shares of McKesson Corporation (NYSE:MCK) have been assigned a consensus rating of “Moderate Buy” from the nineteen brokerages that are covering the firm, MarketBeat reports. Four investment analysts have rated the stock with a hold recommendation and fifteen have assigned a buy recommendation to the company. The average 12 month target price among analysts that have updated their coverage on the stock in the last year is $997.12.

A number of equities analysts have recently issued reports on the stock. Bank of America upped their target price on shares of McKesson from $950.00 to $1,050.00 in a research report on Thursday, August 6th. UBS Group raised their price target on shares of McKesson from $1,080.00 to $1,200.00 and gave the company a “buy” rating in a report on Friday, October 16th. Evercore restated an “outperform” rating and issued a $950.00 price objective (down from $1,000.00) on shares of McKesson in a research report on Thursday, August 6th. Barclays upped their price objective on McKesson from $925.00 to $1,000.00 and gave the stock an “overweight” rating in a report on Wednesday, August 19th. Finally, Wall Street Zen upgraded McKesson from a “hold” rating to a “buy” rating in a research report on Saturday, October 17th.

McKesson Stock Up 7.0%

McKesson stock opened at $1,069.31 on Monday. The stock has a 50-day simple moving average of $931.17 and a 200 day simple moving average of $865.74. McKesson has a 12-month low of $723.68 and a 12-month high of $1,073.95. The stock has a market capitalization of $124.67 billion, a price-to-earnings ratio of 24.49, a P/E/G ratio of 1.99 and a beta of 0.27.

McKesson (NYSE:MCK) last issued its quarterly earnings results on Wednesday, November 4th. The company reported $11.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $10.72 by $0.96. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The business had revenue of $110.96 billion for the quarter, compared to the consensus estimate of $109.90 billion. During the same quarter in the prior year, the company earned $9.86 EPS. The firm’s quarterly revenue was up 7.5% on a year-over-year basis. As a group, sell-side analysts anticipate that McKesson will post 44.71 EPS for the current year.

McKesson Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, January 4th. Stockholders of record on Tuesday, December 1st will be given a dividend of $0.94 per share. The ex-dividend date is Tuesday, December 1st. This represents a $3.76 dividend on an annualized basis and a dividend yield of 0.4%. McKesson’s payout ratio is presently 10.06%.

Trending Headlines about McKesson

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson earned $11.68 per share, above the roughly $10.72 consensus, and revenue was $110.96 billion versus estimates of $109.90 billion. EPS rose from $9.86 a year earlier, while revenue increased 7.5% year over year—evidence of stronger-than-expected quarterly performance. McKesson quarterly earnings results
• Positive Sentiment: Shares also benefited from positive sentiment around peer Cencora’s earnings, according to coverage of McKesson’s move. McKesson gains after rival Cencora files earnings
• Neutral Sentiment: The board affirmed McKesson’s regular quarterly dividend of $0.94 per share, payable January 4, 2027. The reaffirmation supports continuity in shareholder returns but does not signal a dividend increase. Why McKesson is back in the spotlight
• Neutral Sentiment: Before the report, analysts flagged branded-drug pricing pressure as a potential counterweight to prescription-volume, specialty-distribution and oncology growth. The provided results coverage does not clarify how those pressures may affect future performance. Will pharma and specialty demand offset pricing headwinds?

Insider Activity

In other news, Director Bradley Lerman sold 301 shares of the company’s stock in a transaction on Monday, August 10th. The stock was sold at an average price of $892.33, for a total transaction of $268,591.33. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Francisco Fraga sold 800 shares of the firm’s stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $995.80, for a total value of $796,640.00. Following the completion of the transaction, the executive vice president owned 5,423 shares in the company, valued at approximately $5,400,223.40. This represents a 12.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 1,212 shares of company stock valued at $1,164,182 over the last 90 days. 0.06% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. BlackRock Inc. acquired a new position in McKesson during the 2nd quarter worth approximately $8,156,743,000. Bank of America Corp DE raised its stake in shares of McKesson by 2.4% during the 1st quarter. Bank of America Corp DE now owns 1,538,726 shares of the company’s stock worth $1,331,552,000 after buying an additional 35,916 shares during the last quarter. Swedbank AB raised its position in McKesson by 13.5% during the first quarter. Swedbank AB now owns 1,005,610 shares of the company’s stock worth $870,215,000 after acquiring an additional 119,327 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position in shares of McKesson by 3.3% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 922,573 shares of the company’s stock worth $697,096,000 after purchasing an additional 29,747 shares during the last quarter. Finally, Legal & General Group Plc acquired a new position in shares of McKesson in the second quarter worth $656,566,000. Institutional investors own 85.07% of the company’s stock.

About McKesson

McKesson Corporation is a healthcare services and information technology company that distributes pharmaceuticals and medical products to pharmacies, hospitals, health systems, physicians and other healthcare providers. The company also provides technology, data and business solutions designed to support prescription management, pharmacy operations and patient care.

McKesson’s principal activities include pharmaceutical distribution, medical-surgical supply distribution, specialty pharmaceutical services and oncology care support.