McKesson (NYSE:MCK) Trading Down 5.6% on Disappointing Earnings

McKesson Co. (NYSE:MCK)’s share price traded down 5.6% on Thursday following a weaker than expected earnings announcement. The stock traded as low as $575.71 and last traded at $572.98. 91,597 shares changed hands during trading, a decline of 87% from the average session volume of 689,735 shares. The stock had previously closed at $606.90.

The company reported $8.03 earnings per share for the quarter, missing analysts’ consensus estimates of $8.60 by ($0.57). McKesson had a negative return on equity of 207.50% and a net margin of 0.77%.

McKesson Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 1st. Shareholders of record on Monday, March 3rd will be paid a dividend of $0.71 per share. This represents a $2.84 annualized dividend and a yield of 0.49%. The ex-dividend date of this dividend is Monday, March 3rd. McKesson’s dividend payout ratio is presently 14.71%.

Analyst Ratings Changes

A number of research analysts have recently issued reports on MCK shares. Bank of America dropped their target price on McKesson from $680.00 to $650.00 and set a “buy” rating on the stock in a report on Monday, January 6th. Morgan Stanley boosted their price objective on shares of McKesson from $612.00 to $642.00 and gave the company an “overweight” rating in a research note on Tuesday, December 17th. Robert W. Baird upgraded shares of McKesson from a “neutral” rating to an “outperform” rating and raised their target price for the stock from $531.00 to $688.00 in a research note on Thursday, November 7th. Evercore ISI boosted their price target on shares of McKesson from $560.00 to $680.00 and gave the stock an “outperform” rating in a research note on Thursday, November 7th. Finally, Citigroup lowered their price objective on McKesson from $713.00 to $677.00 and set a “buy” rating on the stock in a report on Friday, January 10th. Two equities research analysts have rated the stock with a hold rating, fourteen have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $646.14.

Insider Activity

In other McKesson news, EVP Leann B. Smith sold 579 shares of the firm’s stock in a transaction on Monday, December 9th. The stock was sold at an average price of $602.81, for a total transaction of $349,026.99. Following the completion of the transaction, the executive vice president now owns 1,443 shares of the company’s stock, valued at approximately $869,854.83. This trade represents a 28.64 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Company insiders own 0.11% of the company’s stock.

Institutional Trading of McKesson

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Cibc World Market Inc. lifted its position in McKesson by 6.3% during the fourth quarter. Cibc World Market Inc. now owns 20,252 shares of the company’s stock worth $11,542,000 after buying an additional 1,207 shares during the period. Commerce Bank lifted its holdings in shares of McKesson by 2.0% during the 3rd quarter. Commerce Bank now owns 156,781 shares of the company’s stock worth $77,516,000 after acquiring an additional 3,020 shares during the period. West Oak Capital LLC boosted its position in shares of McKesson by 867.7% in the fourth quarter. West Oak Capital LLC now owns 3,000 shares of the company’s stock worth $1,710,000 after acquiring an additional 2,690 shares during the last quarter. Brentview Investment Management LLC purchased a new stake in McKesson in the fourth quarter valued at approximately $3,018,000. Finally, Nordea Investment Management AB increased its position in McKesson by 20.0% during the fourth quarter. Nordea Investment Management AB now owns 975,935 shares of the company’s stock worth $558,606,000 after purchasing an additional 162,688 shares during the last quarter. Hedge funds and other institutional investors own 85.07% of the company’s stock.

McKesson Stock Down 3.8 %

The company has a market cap of $74.14 billion, a PE ratio of 30.16, a P/E/G ratio of 1.29 and a beta of 0.52. The stock’s 50 day simple moving average is $589.61 and its two-hundred day simple moving average is $562.56.

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.