Aggressive’ Bullish Options Activity Seen in McKesson Corporation

 Aggressive' Bullish Options Activity Seen in McKesson Corporation

In today’s session McKesson Corporation (MCK) registered an unusually high (496) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the November, 2016 call, expecting serious MCK increase. With 496 contracts traded and 834 open interest for the Nov, 16 contract, it seems this is a quite bullish bet. The option with symbol: MCK161118C00160000 closed last at: $4.7 or 34.3% up. About 4.25M shares traded hands or 77.82% up from the average. McKesson Corporation (NYSE:MCK) has declined 21.88% since March 29, 2016 and is downtrending. It has underperformed by 25.35% 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 $547.18 million for 10.17 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), 7 rate it a “Buy”, 0 “Sell”, while 9 “Hold”. This means 44% are positive. $275 is the highest target while $153 is the lowest. The $205.50 average target is 61.30% above today’s ($127.4) stock price. McKesson Corporation has been the topic of 39 analyst reports since July 31, 2015 according to StockzIntelligence Inc. The rating was downgraded by Standpoint Research to “Hold” on Tuesday, April 26. The firm has “Neutral” rating by Bank of America given on Tuesday, June 7. The rating was maintained by RBC Capital Markets on Tuesday, January 12 with “Outperform”. Zacks upgraded it to “Hold” rating and $211 target price in Wednesday, August 26 report. As per Tuesday, March 15, the company rating was downgraded by Cowen & Co. On Tuesday, January 12 the stock rating was downgraded by Raymond James to “Mkt Perform”. Mizuho maintained it with “Neutral” rating and $197 target price in Thursday, August 11 report. The company was maintained on Monday, September 21 by Mizuho. The stock has “Mkt Perform” rating given by Leerink Swann on Friday, October 28. The rating was downgraded by Goldman Sachs on Friday, September 16 to “Neutral”.

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.
Hutchinson Cap Mgmt Ca accumulated 0.08% or 1,395 shares. Godshalk Welsh Capital Mgmt Incorporated holds 0.56% or 2,847 shares in its portfolio. Argent reported 4,530 shares or 0.26% of all its holdings. Tdam Usa Incorporated reported 71,181 shares or 0.65% of all its holdings. Iowa Bank last reported 42 shares in the company. Stock Yards Fincl Bank holds 0.72% or 29,109 shares in its portfolio. First Pacific Advsrs Ltd Liability Co has 85,300 shares for 0.13% of their US portfolio. Moreover, Ladenburg Thalmann Fincl Services has 0.03% invested in McKesson Corporation (NYSE:MCK) for 10,839 shares. Aqr Capital Mgmt Limited Co accumulated 931,162 shares or 0.31% of the stock. Virginia Retirement System Et Al owns 1,700 shares or 0% of their US portfolio. Culbertson A N And last reported 2.75% of its portfolio in the stock. Dai Ichi Life Ins Limited has 0.11% invested in the company for 20,405 shares. Markel accumulated 0.04% or 9,100 shares. Pillar Pacific Capital Management Ltd Liability Com reported 2,435 shares or 0.08% of all its holdings. Balyasny Asset Management Limited Liability holds 0.27% of its portfolio in McKesson Corporation (NYSE:MCK) for 223,637 shares.

Insider Transactions: Since May 21, 2016, the stock had 0 insider purchases, and 15 sales for $57.43 million net activity. 100,500 shares were sold by HAMMERGREN JOHN H, worth $18.17M. $288,570 worth of McKesson Corporation (NYSE:MCK) shares were sold by Lampert Erin M. JULIAN PAUL C also sold $1.81 million worth of McKesson Corporation (NYSE:MCK) on Saturday, May 21. $177,312 worth of McKesson Corporation (NYSE:MCK) shares were sold by JACOBS M CHRISTINE. Schechter Lori A. sold $39,317 worth of stock. $2.20M worth of McKesson Corporation (NYSE:MCK) shares were sold by Figueredo Jorge. Shares for $176,348 were sold by KNOWLES MARIE L/CA on Monday, August 1.

McKesson Corporation is engaged in delivering pharmaceuticals, medical supplies and healthcare information technology. The company has a market cap of $22.27 billion. The Firm operates through two divisions: McKesson Distribution Solutions and Technology Solutions. It has a 14.3 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: Seekingalpha.com which released: “Why McKesson Corporation Shares Fell 23% In A Day” on October 30, 2016. Also Businesswire.com published the news titled: “McKesson Corporation to Present at the 25th Annual Credit Suisse Healthcare …” on October 20, 2016. Businesswire.com‘s news article titled: “McKesson Corporation Fiscal 2017 Second Quarter Conference Call Scheduled for …” with publication date: October 06, 2016 was also an interesting one.

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