McKesson Co. (NYSE:MCK) Sees Large Decline in Short Interest

McKesson Co. (NYSE:MCK) was the target of a large decline in short interest in December. As of December 31st, there was short interest totalling 1,570,000 shares, a decline of 23.0% from the December 15th total of 2,040,000 shares. Currently, 1.2% of the company’s stock are short sold. Based on an average daily trading volume, of 817,300 shares, the days-to-cover ratio is presently 1.9 days.

Insider Activity at McKesson

In related news, EVP Leann B. Smith sold 579 shares of the business’s stock in a transaction that occurred on Thursday, January 2nd. The stock was sold at an average price of $572.79, for a total value of $331,645.41. Following the completion of the sale, the executive vice president now directly owns 864 shares in the company, valued at approximately $494,890.56. The trade was a 40.12 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 0.11% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On McKesson

Hedge funds have recently made changes to their positions in the business. Cerro Pacific Wealth Advisors LLC increased its position in shares of McKesson by 3.0% during the 4th quarter. Cerro Pacific Wealth Advisors LLC now owns 1,251 shares of the company’s stock worth $713,000 after purchasing an additional 36 shares in the last quarter. Goldstein Advisors LLC acquired a new stake in shares of McKesson during the 4th quarter worth about $216,000. Whalen Wealth Management Inc. acquired a new stake in shares of McKesson during the 4th quarter worth about $254,000. Dakota Wealth Management increased its position in shares of McKesson by 2.8% during the 4th quarter. Dakota Wealth Management now owns 1,582 shares of the company’s stock worth $902,000 after purchasing an additional 43 shares in the last quarter. Finally, XML Financial LLC acquired a new stake in shares of McKesson during the 4th quarter worth about $348,000. Institutional investors and hedge funds own 85.07% of the company’s stock.

McKesson Stock Performance

Shares of MCK stock traded down $2.50 during mid-day trading on Friday, reaching $592.69. The company’s stock had a trading volume of 686,346 shares, compared to its average volume of 648,304. McKesson has a 1-year low of $464.42 and a 1-year high of $637.51. The company has a market cap of $75.24 billion, a P/E ratio of 30.69, a PEG ratio of 1.26 and a beta of 0.52. The firm’s 50-day moving average is $595.51 and its two-hundred day moving average is $561.29.

McKesson (NYSE:MCK) last announced its quarterly earnings data 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 prior year, the company posted $6.23 EPS. The business’s revenue was up 21.3% on a year-over-year basis. Sell-side analysts anticipate that McKesson will post 32.73 EPS for the current year.

McKesson Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, January 2nd. Stockholders of record on Monday, December 2nd were paid a $0.71 dividend. This represents a $2.84 dividend on an annualized basis and a dividend yield of 0.48%. The ex-dividend date was Monday, December 2nd. McKesson’s dividend payout ratio is 14.71%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on MCK shares. Wells Fargo & Company boosted their target price on McKesson from $535.00 to $641.00 and gave the stock an “equal weight” rating in a report on Friday, December 13th. Baird R W upgraded McKesson from a “hold” rating to a “strong-buy” rating in a report on Thursday, November 7th. Morgan Stanley boosted their target price on McKesson from $612.00 to $642.00 and gave the stock an “overweight” rating in a report on Tuesday, December 17th. Leerink Partners reduced their target price on McKesson from $665.00 to $630.00 and set an “outperform” rating for the company in a report on Monday, October 7th. Finally, Bank of America cut their price target on McKesson from $680.00 to $650.00 and set a “buy” rating for the company in a report on Monday, January 6th. Two analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $646.14.

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.