McKesson Corporation Is a Sell; Strong Momentum from Option Traders

 McKesson Corporation Is a Sell; Strong Momentum from Option Traders

In today’s session McKesson Corporation (MCK) recorded an unusually high (270) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the November, 2016 put, expecting serious MCK decrease. With 270 contracts traded and 2004 open interest for the Nov, 16 contract, it seems this is a quite bearish bet. The option with symbol: MCK161118P00165000 closed last at: $5.7 or 7.5% up. About 186,943 shares traded hands. McKesson Corporation (NYSE:MCK) has risen 1.71% since March 7, 2016 and is uptrending. It has underperformed by 5.89% the S&P500.

Analysts await McKesson Corporation (NYSE:MCK) to report earnings on November, 3. They expect $3.13 earnings per share, down 5.44% or $0.18 from last year’s $3.31 per share. MCK’s profit will be $711.07 million for 13.19 P/E if the $3.13 EPS becomes a reality. After $3.50 actual earnings per share reported by McKesson Corporation for the previous quarter, Wall Street now forecasts -10.57% negative EPS growth.

McKesson Corporation (NYSE:MCK) Ratings Coverage

Out of 16 analysts covering McKesson Corporation (NYSE:MCK), 9 rate it a “Buy”, 0 “Sell”, while 7 “Hold”. This means 56% are positive. $275 is the highest target while $173 is the lowest. The $210.31 average target is 27.31% above today’s ($165.2) stock price. McKesson Corporation has been the topic of 35 analyst reports since July 31, 2015 according to StockzIntelligence Inc. The rating was initiated by UBS on Thursday, October 6 with “Neutral”. The stock has “Buy” rating given by Mizuho on Monday, September 21. Goldman Sachs downgraded McKesson Corporation (NYSE:MCK) on Friday, September 16 to “Neutral” rating. The stock of McKesson Corporation (NYSE:MCK) earned “Buy” rating by Deutsche Bank on Tuesday, January 12. Standpoint Research downgraded McKesson Corporation (NYSE:MCK) on Tuesday, April 26 to “Hold” rating. Mizuho maintained McKesson Corporation (NYSE:MCK) on Monday, January 18 with “Buy” rating. The stock of McKesson Corporation (NYSE:MCK) earned “Outperform” rating by Raymond James on Wednesday, January 6. Mizuho maintained the stock with “Neutral” rating in Thursday, August 11 report. As per Tuesday, January 12, the company rating was downgraded by Raymond James. FBR Capital maintained it with “Outperform” rating and $210.0 target price in Tuesday, January 12 report.

According to Zacks Investment Research, “McKesson Corporation, the world’s largest health care service and technology company, delivers unique supply and information management solutions that reduce costs and improve quality for its health care customers. The Company is organized under two operating segments: Health Care Supply Management and Health Care Information Technology.”

Insitutional Activity: The institutional sentiment decreased to 0.83 in Q2 2016. Its down 0.04, from 0.87 in 2016Q1. The ratio dropped, as 79 funds sold all McKesson Corporation shares owned while 353 reduced positions. 88 funds bought stakes while 269 increased positions. They now own 186.66 million shares or 6.92% less from 200.54 million shares in 2016Q1.
Vestor Cap Ltd Liability Com has 1.85% invested in the company for 34,921 shares. Deroy And Devereaux Private Inv Counsel Incorporated last reported 78,183 shares in the company. Hitchwood Cap Management L P holds 2.7% or 600,000 shares in its portfolio. Inr Advisory Services Limited Liability Corp holds 0% of its portfolio in McKesson Corporation (NYSE:MCK) for 11 shares. Intrust Savings Bank Na accumulated 0.22% or 2,932 shares. Manchester Capital Limited Liability accumulated 1,047 shares or 0.03% of the stock. Parnassus Ca last reported 0.05% of its portfolio in the stock. Moreover, Parametric has 0.15% invested in McKesson Corporation (NYSE:MCK) for 525,536 shares. Pdts Prtnrs Ltd accumulated 38,200 shares or 0.56% of the stock. Boys Arnold And Com accumulated 0.12% or 3,674 shares. Stifel Fincl Corp has 40,408 shares for 0.03% of their US portfolio. Rock Springs Capital Ltd Partnership has 1.08% invested in the company for 77,900 shares. Amica Pension Fund Board Of Trustees owns 18,109 shares or 0.44% of their US portfolio. Van Eck Associates reported 189,768 shares or 0.18% of all its holdings. Sigma Planning Corporation, a Michigan-based fund reported 1,624 shares.

Insider Transactions: Since April 25, 2016, the stock had 0 insider buys, and 16 insider sales for $75.44 million net activity. Blake Patrick had sold 6,322 shares worth $1.16M on Tuesday, May 24. HAMMERGREN JOHN H also sold $6.84 million worth of McKesson Corporation (NYSE:MCK) shares. JULIAN PAUL C had sold 20,232 shares worth $3.70M on Tuesday, May 24. Schechter Lori A. also sold $19,189 worth of McKesson Corporation (NYSE:MCK) shares. Another trade for 12,250 shares valued at $2.20 million was made by Figueredo Jorge on Monday, May 23. On Monday, October 3 Lampert Erin M sold $288,570 worth of the stock or 1,739 shares. On Monday, September 12 the insider BUDD WAYNE A sold $414,920.

McKesson Corporation is engaged in delivering pharmaceuticals, medical supplies and healthcare information technology. The company has a market cap of $37.53 billion. The Firm operates through two divisions: McKesson Distribution Solutions and Technology Solutions. It has a 16.18 P/E ratio. The McKesson Distribution Solutions segment distributes drugs and equipment, and health and beauty care products across North America and internationally.

MCK Company Profile

McKesson Corporation (McKesson), incorporated on July 7, 1994, is a pharmaceutical distribution services and information technology company. The Firm delivers an offering of pharmaceuticals and medical supplies. The Firm operates through two divisions: McKesson Distribution Solutions and McKesson Technology Solutions.

More recent McKesson Corporation (NYSE:MCK) news were published by: Businesswire.com which released: “McKesson Corporation Fiscal 2017 Second Quarter Conference Call Scheduled for …” on October 06, 2016. Also Seekingalpha.com published the news titled: “Please Fill My Rx For McKesson Corporation” on September 26, 2016. Areadevelopment.com‘s news article titled: “McKesson Corporation, a healthcare services and information technology company …” with publication date: September 23, 2016 was also an interesting one.

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