McKesson Corporation (NYSE:MCK) reached a new 52-week high on Thursday, trading at $964.94 before settling at $958.92. This surge followed the company’s robust earnings report, which exceeded Wall Street expectations. The previous closing price was $822.00, and the stock saw a trading volume of 586,810 shares.
The company announced earnings per share (EPS) of $9.34 for the quarter, surpassing the consensus estimate of $9.19 by $0.15. McKesson also reported a revenue of $106.16 billion, slightly above the projected $105.98 billion. This marks an 11.4% increase in revenue compared to the same quarter last year, during which the company recorded an EPS of $8.03.
Dividend Announcement and Future Guidance
In addition to the earnings report, McKesson announced a quarterly dividend of $0.82 per share, scheduled for payment on April 1, 2024. Shareholders on record as of March 2 will receive this dividend, which represents an annualized amount of $3.28 and a yield of 0.3%. Currently, McKesson’s dividend payout ratio stands at 10.21%. For the fiscal year 2026, the company has set its guidance at an EPS range of $38.800 to $39.200.
Market Reactions and Analyst Ratings
Following the earnings report, several brokerages adjusted their ratings on McKesson shares. Evercore ISI reiterated its “outperform” rating and set a price target of $1,000.00. TD Cowen maintained a “buy” rating, while Zacks Research downgraded the stock from a “strong buy” to a “hold” rating. Jefferies Financial Group raised its price target from $820.00 to $900.00, also giving the stock a “buy” rating. According to MarketBeat.com, McKesson currently holds a consensus rating of “Moderate Buy” with an average target price of $908.36.
Insider trading activity has also been noteworthy. Chief Accounting Officer Napoleon B. Rutledge, Jr. sold 329 shares on November 7 at an average price of $861.63, totaling approximately $283,476.27. This sale reduced his holdings to 328 shares, valued at around $282,614.64, representing a 50.08% decrease in ownership. Similarly, Executive Vice President Thomas L. Rodgers sold 276 shares on January 5 at an average price of $816.18, resulting in a total transaction of $225,265.68.
Institutional Ownership and Stock Performance
Recent changes in institutional ownership have also influenced McKesson’s stock. GGM Financials LLC acquired a new stake worth $25,000 in the third quarter. Other investors, including Solstein Capital LLC and the State of Wyoming, have also increased their holdings. Currently, institutional investors own approximately 85.07% of McKesson’s stock.
As of this week, McKesson’s 50-day moving average is $825.54, and the 200-day moving average is $776.66. The company boasts a market capitalization of $118.14 billion, a price-to-earnings (PE) ratio of 29.94, and a beta of 0.40.
Founded in 1833 and headquartered in Irving, Texas, McKesson Corporation provides a range of healthcare services, including pharmaceutical distribution and health technology solutions. The company connects manufacturers, pharmacies, and hospitals to manage the flow of medications and clinical supplies, playing a vital role in the healthcare supply chain.
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