On March 31, 2023, Citigroup initiated coverage of McKesson with a Buy recommendation.
Analyst Price Forecast Suggests 23.11% Upside
As of March 31, 2023, the average one-year price target for McKesson is $438.34. The forecasts range from a low of $379.76 to a high of $472.50. The average price target represents an increase of 23.11% from its latest reported closing price of $356.05.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for McKesson is $288,936MM, an increase of 5.49%. The projected annual non-GAAP EPS is $26.65, an increase of 6.45% from the prior forecast.
McKesson Declares $0.54 Dividend
On January 26, 2023 the company declared a regular quarterly dividend of $0.54 per share ($2.16 annualized). Shareholders of record as of March 1, 2023 will receive the payment on April 3, 2023. Previously, the company paid $0.54 per share.
At the current share price of $356.05 / share, the stock's dividend yield is 0.61%. Looking back five years and taking a sample every week, the average dividend yield has been 0.97%, the lowest has been 0.55%, and the highest has been 1.44%. The standard deviation of yields is 0.24 (n=237).
The current dividend yield is 1.51 standard deviations below the historical average.
Additionally, the company's dividend payout ratio is 0.09. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.32%, demonstrating that it has increased its dividend over time.
What are Large Shareholders Doing?
Jpmorgan Chase & holds 5,315K shares representing 3.88% ownership of the company. No change in the last quarter.
Massachusetts Financial Services holds 4,572K shares representing 3.34% ownership of the company. In it's prior filing, the firm reported owning 4,782K shares, representing a decrease of 4.58%. The firm decreased its portfolio allocation in MCK by 99.98% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 4,299K shares representing 3.14% ownership of the company. In it's prior filing, the firm reported owning 4,277K shares, representing an increase of 0.49%. The firm increased its portfolio allocation in MCK by 2.43% over the last quarter.
VFINX - Vanguard 500 Index Fund Investor Shares holds 3,278K shares representing 2.39% ownership of the company. In it's prior filing, the firm reported owning 3,258K shares, representing an increase of 0.60%. The firm increased its portfolio allocation in MCK by 2.30% over the last quarter.
Berkshire Hathaway holds 2,856K shares representing 2.09% ownership of the company. In it's prior filing, the firm reported owning 3,198K shares, representing a decrease of 12.01%. The firm decreased its portfolio allocation in MCK by 2.42% over the last quarter.
What is the Fund Sentiment?
There are 2329 funds or institutions reporting positions in McKesson. This is an increase of 119 owner(s) or 5.38% in the last quarter. Average portfolio weight of all funds dedicated to MCK is 0.45%, a decrease of 11.77%. Total shares owned by institutions decreased in the last three months by 2.98% to 136,609K shares. The put/call ratio of MCK is 0.93, indicating a bullish outlook.
Mckesson Background Information
(This description is provided by the company.)
McKesson Corporation is a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information solutions. McKesson partners with pharmaceutical manufacturers, providers, pharmacies, governments and other organizations in healthcare to help provide the right medicines, medical products and healthcare services to the right patients at the right time, safely and cost-effectively. United by our ICARE shared principles, its employees work every day to innovate and deliver opportunities that make our customers and partners more successful - all for the better health of patients. McKesson has been named a 'Most Admired Company' in the healthcare wholesaler category by FORTUNE, a 'Best Place to Work' by the Human Rights Campaign Foundation, and a top military-friendly company by Military Friendly.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
