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In a recent transaction disclosed on February 13, LeAnn B. Smith, the Executive Vice President and Chief Human Resources Officer of McKesson Corp. (NYSE:MCK), sold 188 shares of the company’s common stock. The shares were sold at a price of $609.59 each, amounting to a total transaction value of approximately $114,602. This sale was conducted as part of a previously adopted plan dated September 9, 2024, in compliance with Rule 10b5-1(c). Following this transaction, Smith holds 1,051 shares of McKesson Corp. The stock, which has delivered an impressive 18.4% return over the past year, is currently trading near its 52-week high of $637.51. InvestingPro analysis reveals 14 additional key insights about McKesson's performance and valuation, available to subscribers.
In other recent news, McKesson Corp. has been making significant strides. S&P Global Ratings has revised its outlook on the company from stable to positive, affirming its 'BBB+' rating, based on expected growth in McKesson's U.S. pharmaceutical segment and its prescription technology business. This growth is anticipated to generate strong free cash flow and keep the company's leverage below 2x. McKesson has also announced plans to acquire a controlling interest in PRISM Vision Holdings LLC, an ophthalmology practice, and Florida Cancer Specialists & Research Institute, aligning with the company's strategy to add higher-margin specialty services to its business.
In a recent financial performance review, Citi analyst Daniel Grosslight reaffirmed a Buy rating on McKesson and increased the price target for the company's shares to $685. This follows the successful integration of Optum and widespread utilization throughout McKesson's offerings. Despite some segments not meeting estimates, McKesson has raised its guidance, now anticipating 16% to 18% revenue growth and an 18.6% to 20.1% increase in adjusted earnings per share (EPS).
However, McKesson's third-quarter earnings and revenue missed analyst expectations, leading to a decrease in shares. Despite this, the company raised its full-year earnings guidance. The U.S. Pharmaceutical (TADAWUL:2070) segment, the company's largest business unit, saw a 19% increase in revenues. These are recent developments, and it's important to note that these facts do not predict future performance.
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