McKesson (NYSE:MCK) Shares Gap Up on Better-Than-Expected Earnings

McKesson Co. (NYSE:MCK)’s stock price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $549.31, but opened at $606.28. McKesson shares last traded at $594.58, with a volume of 513,306 shares changing hands.

The company reported $7.07 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $6.89 by $0.18. McKesson had a net margin of 0.94% and a negative return on equity of 242.57%. The company had revenue of $93.65 billion during the quarter, compared to analyst estimates of $89.33 billion. During the same quarter last year, the business posted $6.23 EPS. The company’s revenue for the quarter was up 21.3% on a year-over-year basis.

McKesson Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, January 2nd. Shareholders of record on Monday, December 2nd will be given a $0.71 dividend. This represents a $2.84 annualized dividend and a yield of 0.48%. The ex-dividend date is Monday, December 2nd. McKesson’s dividend payout ratio is 12.70%.

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. Baird R W downgraded McKesson from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 24th. Mizuho lifted their target price on shares of McKesson from $540.00 to $570.00 and gave the stock a “neutral” rating in a report on Thursday, August 8th. StockNews.com raised McKesson from a “hold” rating to a “buy” rating in a research report on Wednesday. Wells Fargo & Company decreased their price target on shares of McKesson from $576.00 to $535.00 and set an “equal weight” rating on the stock in a research note on Friday, September 13th. Finally, Evercore ISI increased their price objective on shares of McKesson from $560.00 to $680.00 and gave the company an “outperform” rating in a research note on Thursday. Three equities research analysts have rated the stock with a hold rating and fourteen have assigned a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $625.64.

Insider Activity

In other news, CEO Brian S. Tyler sold 3,753 shares of the company’s stock in a transaction dated Thursday, September 5th. The shares were sold at an average price of $561.10, for a total value of $2,105,808.30. Following the sale, the chief executive officer now directly owns 78,586 shares of the company’s stock, valued at approximately $44,094,604.60. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.11% of the company’s stock.

Hedge Funds Weigh In On McKesson

Institutional investors and hedge funds have recently modified their holdings of the stock. LRI Investments LLC acquired a new position in McKesson in the 1st quarter valued at $28,000. Wolff Wiese Magana LLC grew its position 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 purchasing an additional 52 shares in the last quarter. ORG Wealth Partners LLC bought a new position in shares of McKesson during the third quarter worth approximately $40,000. Carmichael Hill & Associates Inc. acquired a new stake in shares of McKesson in the second quarter valued at approximately $52,000. Finally, Centennial Bank AR acquired a new stake in shares of McKesson during the 2nd quarter worth $53,000. 85.07% of the stock is currently owned by institutional investors and hedge funds.

McKesson Stock Performance

The stock’s fifty day moving average price is $510.96 and its two-hundred day moving average price is $550.61. The company has a market cap of $77.11 billion, a P/E ratio of 26.59, a P/E/G ratio of 1.23 and a beta of 0.44.

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.