McKesson Corporation (NYSE: MCK) reached a new 52-week high on Thursday, trading at $964.94, following a robust earnings report that exceeded analyst expectations. The stock closed at $958.92 after an impressive trading volume of 586,810 shares, significantly up from its previous close of $822.00.
The company reported earnings per share (EPS) of $9.34 for the quarter, surpassing the consensus estimate of $9.19 by $0.15. This performance marked an increase from last year’s EPS of $8.03. McKesson’s revenue for the quarter was reported at $106.16 billion, slightly above the expected $105.98 billion, representing a year-over-year growth of 11.4%.
In addition to its earnings announcement, McKesson also provided guidance for the fiscal year 2026, projecting an EPS range of $38.800 to $39.200.
Dividend Declaration
On a related note, McKesson declared a quarterly dividend of $0.82, which is set to be paid on April 1, 2024. Shareholders of record on March 2, 2024, will receive this dividend, with the ex-dividend date also scheduled for March 2. This dividend represents an annualized total of $3.28 and a yield of 0.3%, with a current payout ratio of 10.21%.
Market Analysts’ Insights
Wall Street analysts have responded positively to McKesson’s performance. Evercore ISI reiterated an “outperform” rating on the stock, setting a price target of $1,000.00. TD Cowen also maintained a “buy” rating. However, Zacks Research downgraded McKesson from a “strong-buy” to a “hold” rating. According to MarketBeat.com, the stock currently holds a consensus rating of “Moderate Buy” with an average target price of $908.36.
Insider trading activity has been noted as well. Chief Accounting Officer Napoleon B. Rutledge, Jr. sold 329 shares at an average price of $861.63, totaling around $283,476.27. Following this sale, Rutledge holds 328 shares valued at approximately $282,614.64. Executive Vice President Thomas L. Rodgers also sold 276 shares recently, reducing his ownership by 10.85%.
Institutional Investors’ Positions
Institutional interest in McKesson remains strong, with 85.07% of the company’s stock held by institutional investors. Several hedge funds have recently adjusted their stakes. GGM Financials LLC acquired a new stake valued at $25,000, while Solstein Capital LLC increased its holdings by 171.4%, now owning 38 shares valued at $28,000.
McKesson’s current market capitalization stands at $118.14 billion, with a price-to-earnings (P/E) ratio of 29.94 and a beta of 0.40.
Founded in 1833 and headquartered in Irving, Texas, McKesson Corporation is a leading global healthcare services and distribution company. It plays a crucial role in the pharmaceutical supply chain, connecting manufacturers, pharmacies, hospitals, and health systems to facilitate the movement of medicines and medical supplies.
As McKesson continues to demonstrate strong financial performance, its prospects for growth and shareholder returns appear promising, making it a company to watch in the healthcare sector.
