McKesson (NYSE:MCK) Sets New 1-Year High After Analyst Upgrade

McKesson Corporation (NYSE:MCK) reached a new 52-week high during mid-day trading on Wednesday after Mizuho raised their price target on the stock from $905.00 to $1,020.00. Mizuho currently has a neutral rating on the stock. McKesson traded as high as $1,030.27 and last traded at $1,029.5240, with a volume of 789,379 shares changing hands. The stock had previously closed at $1,010.43.

Other research analysts also recently issued research reports about the stock. UBS Group lifted their price objective on shares of McKesson from $1,080.00 to $1,200.00 and gave the company a “buy” rating in a research report on Friday, October 16th. Robert W. Baird set a $1,015.00 price objective on shares of McKesson in a research note on Thursday, August 6th. Wall Street Zen raised shares of McKesson from a “hold” rating to a “buy” rating in a report on Saturday, October 17th. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $845.00 target price on shares of McKesson in a report on Monday, September 14th. Finally, TD Cowen raised their target price on shares of McKesson from $989.00 to $1,006.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Fifteen analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, McKesson has an average rating of “Moderate Buy” and an average price target of $997.12.

Insiders Place Their Bets

In other McKesson news, EVP Francisco Fraga sold 800 shares of the business’s stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $995.80, for a total transaction of $796,640.00. Following the completion of the transaction, the executive vice president directly owned 5,423 shares in the company, valued at $5,400,223.40. The trade was a 12.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Napoleon B. Rutledge, Jr. sold 111 shares of the business’s stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $891.45, for a total value of $98,950.95. Following the transaction, the chief accounting officer directly owned 521 shares of the company’s stock, valued at $464,445.45. This trade represents a 17.56% 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 a total of 1,212 shares of company stock worth $1,164,182 in the last 90 days. Company insiders own 0.06% of the company’s stock.

McKesson News Roundup

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: Analyst price-target increases supported the long-term outlook. UBS raised its target to $1,200, while Mizuho lifted its target to $1,020 from $905, although Mizuho maintained a neutral rating. The analyst actions followed McKesson’s recent strength and helped the stock reach a new one-year high. UBS raises target for McKesson
• Positive Sentiment: McKesson declared its regular quarterly dividend. The company will pay $0.94 per share on January 4, 2027, to shareholders of record on December 1. The dividend provides continuity for income-focused investors, though the annualized yield is modest at approximately 0.4%. McKesson declares quarterly dividend
• Neutral Sentiment: Investor attention remains elevated. McKesson was among the more-trending stocks on Zacks, but the article primarily reviews existing fundamentals rather than introducing a new catalyst. Its latest reported quarter showed earnings and revenue above estimates, with revenue up 7.7% year over year and fiscal 2027 EPS guidance of $44.20–$45.00. Is Trending Stock McKesson a Buy Now?
• Negative Sentiment: An executive sale may have added modest selling pressure. EVP Francisco Fraga sold 800 shares worth approximately $796,640. However, the transaction was conducted under a pre-arranged Rule 10b5-1 trading plan, reducing its significance as a discretionary bearish signal. McKesson executive stock sale

Institutional Investors Weigh In On McKesson

Several hedge funds have recently modified their holdings of MCK. BlackRock Inc. bought a new stake in shares of McKesson in the 2nd quarter valued at about $8,156,743,000. Bank of America Corp DE increased its stake in shares of McKesson by 2.4% in the first quarter. Bank of America Corp DE now owns 1,538,726 shares of the company’s stock valued at $1,331,552,000 after buying an additional 35,916 shares during the period. Swedbank AB raised its position in shares of 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 second 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 acquiring an additional 29,747 shares during the last quarter. Finally, Legal & General Group Plc bought a new position in shares of McKesson during the second quarter worth about $656,566,000. Institutional investors and hedge funds own 85.07% of the company’s stock.

McKesson Stock Down 1.5%

The stock has a 50 day moving average of $905.65 and a 200 day moving average of $840.38. The company has a market capitalization of $118.31 billion, a price-to-earnings ratio of 25.24, a price-to-earnings-growth ratio of 2.05 and a beta of 0.30.

McKesson (NYSE:MCK) last announced its earnings results on Wednesday, August 5th. The company reported $9.93 EPS for the quarter, beating the consensus estimate of $9.56 by $0.37. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%. The business had revenue of $105.38 billion for the quarter, compared to analysts’ expectations of $103.88 billion. During the same period in the prior year, the business posted $8.26 earnings per share. The firm’s revenue was up 7.7% on a year-over-year basis. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, sell-side analysts anticipate that McKesson Corporation will post 44.71 EPS for the current fiscal year.

McKesson Dividend Announcement

The firm 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 of this dividend is Tuesday, December 1st. This represents a $3.76 annualized dividend and a dividend yield of 0.4%. McKesson’s payout ratio is presently 10.06%.

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.