The stock of McKesson Corporation (NYSE:MCK) gapped down by $26.7 today and has $116.66 target or 6.00% below today’s $124.11 share price. The 7 months technical chart setup indicates high risk for the $28.35B company. The gap down was reported on Oct, 28 by Barchart.com. If the $116.66 price target is reached, the company will be worth $1.70 billion less.
Gaps down are helpful for identifying a resistance level and to could also be used as a tradeable event. If traders are short the stock and it experiece gap down, then its usually advisable to hold the short for a bigger down move. Back-tests of such patterns show that two-thirds of the these patterns the stock performance worsens after the gap. The area gaps close 91% of the time, the breakaway gaps 1%, the continuation gaps 9% and the exhaustion gaps 64%. The stock decreased 22.67% or $36.39 during the last trading session, hitting $124.11. About 28.13M shares traded hands or 1604.85% up from the average. McKesson Corporation (NYSE:MCK) has risen 2.54% since March 28, 2016 and is uptrending. It has underperformed by 2.18% 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 $714.97 million for 9.91 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. McKesson Corporation has been the topic of 35 analyst reports since July 31, 2015 according to StockzIntelligence Inc. The firm has “Buy” rating by Mizuho given on Friday, January 15. The firm has “Hold” rating by Zacks given on Wednesday, August 26. As per Tuesday, August 9, the company rating was maintained by JP Morgan. Mizuho maintained the stock with “Neutral” rating in Tuesday, June 7 report. The rating was maintained by S&P Research with “Buy” on Friday, July 31. Mizuho maintained McKesson Corporation (NYSE:MCK) on Monday, January 18 with “Buy” rating. The stock has “Outperform” rating given by RBC Capital Markets on Tuesday, January 12. The firm has “Outperform” rating by Raymond James given on Wednesday, January 6. Deutsche Bank maintained the stock with “Buy” rating in Tuesday, January 12 report. The firm has “Outperform” rating given on Tuesday, January 12 by FBR Capital.
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 turned negative, 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.
Ingalls & Snyder Limited Liability Corp accumulated 0.12% or 10,548 shares. Essex Fincl has 1,214 shares for 0.05% of their US portfolio. Veritable Lp last reported 6,638 shares in the company. Todd Asset Mngmt Ltd Co holds 75,633 shares or 0.45% of its portfolio. Blackrock Gp holds 2.52 million shares or 0.24% of its portfolio. Capital One Association last reported 10,749 shares in the company. Laffer has 8,013 shares for 0% of their US portfolio. Legal General Grp Public Ltd last reported 1.14 million shares in the company. Cap Rech Investors has 9.02 million shares for 0.58% of their US portfolio. Manchester Capital Lc accumulated 1,047 shares or 0.03% of the stock. Psagot Inv House accumulated 0.19% or 24,150 shares. The Michigan-based Plante Moran Finance Advsr Limited Liability Company has invested 0.05% in McKesson Corporation (NYSE:MCK). Moreover, Princeton Strategies Gru Lc has 1.95% invested in McKesson Corporation (NYSE:MCK) for 32,424 shares. Lazard Asset Lc last reported 783,655 shares in the company. Hutchin Hill Ltd Partnership accumulated 0.5% or 80,400 shares.
Insider Transactions: Since May 21, 2016, the stock had 0 buys, and 15 sales for $57.43 million net activity. On Saturday, May 21 the insider Blake Patrick sold $567,053. On Saturday, May 21 Schechter Lori A. sold $19,189 worth of the stock or 107 shares. Lampert Erin M had sold 1,739 shares worth $288,570 on Monday, October 3. JULIAN PAUL C also sold $1.81 million worth of McKesson Corporation (NYSE:MCK) on Saturday, May 21. HAMMERGREN JOHN H sold $3.36 million worth of stock. BUDD WAYNE A also sold $414,920 worth of McKesson Corporation (NYSE:MCK) shares. Shares for $176,348 were sold by KNOWLES MARIE L/CA.
More important recent McKesson Corporation (NYSE:MCK) news were published by: Marketwatch.com which released: “McKesson shares drop on earnings miss, weak outlook” on October 27, 2016, also Businesswire.com published article titled: “McKesson Corporation to Present at the 25th Annual Credit Suisse Healthcare …”, Nasdaq.com published: “Earnings Reaction History: McKesson Corporation, 57.1% Follow-Through …” on October 27, 2016. More interesting news about McKesson Corporation (NYSE:MCK) was released by: Benzinga.com and their article: “12 Stocks To Watch For October 28, 2016” with publication date: October 28, 2016.
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.
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