Traders Buy McKesson (MCK) on Weakness

Investors purchased shares of McKesson Co. (NYSE:MCK) on weakness during trading hours on Monday. $67.34 million flowed into the stock on the tick-up and $23.12 million flowed out of the stock on the tick-down, for a money net flow of $44.22 million into the stock. Of all equities tracked, McKesson had the 19th highest net in-flow for the day. McKesson traded down ($1.31) for the day and closed at $130.18

MCK has been the topic of a number of research reports. Zacks Investment Research upgraded McKesson from a “sell” rating to a “hold” rating in a report on Wednesday, January 9th. Barclays reiterated a “hold” rating and issued a $124.00 target price on shares of McKesson in a report on Sunday, January 6th. ValuEngine downgraded McKesson from a “sell” rating to a “strong sell” rating in a report on Friday, November 16th. Deutsche Bank upgraded McKesson from a “sell” rating to a “hold” rating and set a $175.00 target price on the stock in a report on Friday, January 25th. Finally, Morgan Stanley dropped their target price on McKesson from $142.00 to $130.00 in a report on Sunday, December 9th. One analyst has rated the stock with a sell rating, eight have assigned a hold rating and six have given a buy rating to the company. The company currently has a consensus rating of “Hold” and an average price target of $137.99.

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The firm has a market capitalization of $25.22 billion, a P/E ratio of 10.10, a P/E/G ratio of 1.37 and a beta of 1.25. The company has a quick ratio of 0.57, a current ratio of 1.02 and a debt-to-equity ratio of 0.81.

McKesson (NYSE:MCK) last released its quarterly earnings data on Thursday, January 31st. The company reported $3.40 EPS for the quarter, topping analysts’ consensus estimates of $3.18 by $0.22. McKesson had a positive return on equity of 27.83% and a negative net margin of 0.15%. The firm had revenue of $56.21 billion for the quarter, compared to the consensus estimate of $55.27 billion. During the same quarter in the prior year, the company posted $3.41 earnings per share. As a group, equities research analysts forecast that McKesson Co. will post 13.55 earnings per share for the current fiscal year.

The company also recently disclosed a quarterly dividend, which will be paid on Monday, April 1st. Investors of record on Friday, March 1st will be issued a $0.39 dividend. The ex-dividend date of this dividend is Thursday, February 28th. This represents a $1.56 dividend on an annualized basis and a yield of 1.22%. McKesson’s dividend payout ratio is currently 12.36%.

In related news, EVP Lori A. Schechter sold 7,700 shares of the stock in a transaction that occurred on Wednesday, January 16th. The stock was sold at an average price of $122.96, for a total value of $946,792.00. Following the transaction, the executive vice president now owns 10,000 shares in the company, valued at $1,229,600. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Corporate insiders own 0.87% of the company’s stock.

Large investors have recently added to or reduced their stakes in the stock. Wedge Capital Management L L P NC increased its holdings in McKesson by 6.6% in the fourth quarter. Wedge Capital Management L L P NC now owns 273,751 shares of the company’s stock worth $30,241,000 after buying an additional 17,003 shares during the last quarter. Morgan Stanley boosted its position in McKesson by 7.0% during the third quarter. Morgan Stanley now owns 664,384 shares of the company’s stock worth $88,132,000 after purchasing an additional 43,589 shares during the period. FTB Advisors Inc. boosted its position in McKesson by 5.7% during the third quarter. FTB Advisors Inc. now owns 38,176 shares of the company’s stock worth $5,064,000 after purchasing an additional 2,063 shares during the period. Fulton Bank N.A. boosted its position in McKesson by 5.7% during the fourth quarter. Fulton Bank N.A. now owns 8,664 shares of the company’s stock worth $957,000 after purchasing an additional 465 shares during the period. Finally, PGGM Investments boosted its position in McKesson by 28.5% during the fourth quarter. PGGM Investments now owns 239,595 shares of the company’s stock worth $26,468,000 after purchasing an additional 53,095 shares during the period. Hedge funds and other institutional investors own 87.31% of the company’s stock.

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McKesson Company Profile (NYSE:MCK)

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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