McKesson Corporation (NYSE: MCK) stock jumped 0.43% on Friday to $346.96 against a previous-day closing price of $345.47. With 1.11 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.03 million shares. During the session, the Medical Distribution company that operates in wider Healthcare sector, reached to the highest price of $349.97 whereas the lowest price it dropped to was $344.01. The 52-week range on MCK shows that it touched its highest point at $375.23 and its lowest point at $193.89 during that stretch. It currently has a 1-year price target of $383.54. With its current market cap of 49.12 billion, MCK has annualized dividend of $2.16 while the current yield stands at 0.62%. Beta for the stock currently stands at 0.60.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of MCK was up-trending over the past week, with a rise of 1.74%, but this was down by -4.69% over a month. Three-month performance surged to 10.27% while six-month performance rose 15.65%. The stock gained 71.23% in the past year, while it has gained 39.58% so far this year. A look at the trailing 12-month EPS for MCK yields 9.40 with Next year EPS estimates of 26.00. For the next quarter, that number is 6.05. This implies an EPS growth rate of 125.70% for this year and 6.13% for next year. EPS is expected to grow by 10.61% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -20.80%.
Float and Shares Shorts:
At present, 144.20 million MCK shares are outstanding with a float of 143.57 million shares on hand for trading. On Jul 14, 2022, short shares totaled 2.5 million, which was 1.74% higher than short shares on Jun 14, 2022. In addition to Mr. Brian S. Tyler Ph.D. as the firm’s CEO & Director, Mr. Britt J. Vitalone serves as its Exec. VP & CFO.
Through their ownership of 92.55% of MCK’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 52.86% of MCK, in contrast to 42.05% held by mutual funds. Shares owned by individuals account for 0.71%. As the largest shareholder in MCK with 10.17% of the stake, The Vanguard Group, Inc. holds 14,620,819 shares worth 14,620,819. A second-largest stockholder of MCK, Manulife Investment Management Lt, holds 6,673,605 shares, controlling over 4.64% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in MCK, holding 6,611,727 shares or 4.60% stake. With a 4.55% stake in MCK, the Manulife Balanced Income Private is the largest stakeholder. A total of 6,534,000 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.98% of MCK stock, is the second-largest Mutual Fund holder. It holds 4,289,131 shares valued at 1.57 billion. Vanguard 500 Index Fund holds 2.26% of the stake in MCK, owning 3,243,902 shares worth 1.19 billion.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MCK since 15 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 2 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With MCK analysts setting a high price target of $423.00 and a low target of $345.00, the average target price over the next 12 months is $392.08. Based on these targets, MCK could surge 21.92% to reach the target high and fall by -0.56% to reach the target low. Reaching the average price target will result in a growth of 13.0% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. MCK will report FY 2023 earnings on 05/04/2023. Analysts have provided yearly estimates in a range of $24.65 being high and $24.26 being low. For MCK, this leads to a yearly average estimate of $24.49. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. McKesson Corporation surprised analysts by $0.54 when it reported $5.83 EPS against a consensus estimate of $5.29. The surprise factor in the prior quarter was -$0.20. Based on analyst estimates, the high estimate for the next quarter is $6.45 and the low estimate is $5.82. The average estimate for the next quarter is thus $6.05.
Summary of Insider Activity:
Insiders traded MCK stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 50 while that of sell transactions has risen to 86 over the past year. The total number of shares bought during that period was 459,297 while 418,353 shares were sold.