Redwood Investment Management LLC purchased a new position in McKesson Corporation (NYSE:MCK – Free Report) during the second quarter, Holdings Channel.com reports. The firm purchased 1,624 shares of the company’s stock, valued at approximately $1,227,000.
Other institutional investors and hedge funds have also recently bought and sold shares of the company. BlackRock Inc. acquired a new position in shares of McKesson in the second quarter worth about $8,156,743,000. State Street Corp raised its holdings in shares of McKesson by 0.5% during the fourth quarter. State Street Corp now owns 5,780,179 shares of the company’s stock valued at $4,746,118,000 after acquiring an additional 29,660 shares during the period. Geode Capital Management LLC raised its holdings in shares of McKesson by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 2,857,344 shares of the company’s stock valued at $2,333,520,000 after acquiring an additional 25,082 shares during the period. Franklin Resources Inc. lifted its position in shares of McKesson by 5.4% in the 4th quarter. Franklin Resources Inc. now owns 2,825,954 shares of the company’s stock valued at $2,318,102,000 after acquiring an additional 144,633 shares in the last quarter. Finally, Norges Bank acquired a new position in McKesson in the 4th quarter worth approximately $1,651,137,000. Institutional investors and hedge funds own 85.07% of the company’s stock.
Analyst Ratings Changes
MCK has been the topic of several recent analyst reports. TD Cowen boosted their target price on shares of McKesson from $989.00 to $1,006.00 and gave the company a “buy” rating in a research note on Thursday, August 6th. Royal Bank Of Canada initiated coverage on McKesson in a research report on Wednesday, August 19th. They issued a “sector perform” rating and a $845.00 target price for the company. Barclays lifted their price target on McKesson from $925.00 to $1,000.00 and gave the company an “overweight” rating in a report on Wednesday, August 19th. Citigroup upped their price target on McKesson from $945.00 to $1,000.00 and gave the company a “buy” rating in a research report on Friday, July 24th. Finally, Morgan Stanley reissued an “overweight” rating on shares of McKesson in a research note on Friday, August 7th. Fourteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, McKesson currently has an average rating of “Moderate Buy” and a consensus target price of $973.44.
Key Stories Impacting McKesson
Here are the key news stories impacting McKesson this week:
- Positive Sentiment: McKesson’s agreement to acquire Precision Medicine Group would expand its clinical research and drug-commercialization capabilities. Management expects the business to complement its oncology operations and create additional growth opportunities in specialty pharmaceuticals. Reuters: McKesson to buy Precision Medicine Group
- Positive Sentiment: Short interest in McKesson fell 33% to about 2.42 million shares as of August 14, representing just 2.1% of shares outstanding and 2.2 days of average trading volume. The reduction suggests less bearish positioning and may provide technical support for the stock.
- Positive Sentiment: Analyst commentary remains constructive on McKesson’s specialty distribution, oncology and technology businesses. The company’s latest reported quarter also exceeded earnings and revenue expectations, supporting the view that its core operations remain resilient. Zacks: Why retain McKesson stock
- Neutral Sentiment: McKesson Ventures’ latest report highlighted artificial intelligence, enterprise demand and investor confidence as major forces reshaping pharmaceutical technology. This could create strategic opportunities, although the report does not announce a specific financial commitment or revenue impact for MCK. McKesson Ventures pharma technology report
- Negative Sentiment: The Precision Medicine transaction comes amid a McKesson reorganization and reported layoffs. Investors may be concerned about restructuring costs, execution risk and whether the acquisition will deliver sufficient returns to offset its $2.25 billion price tag. McKesson acquisition and reorganization
- Negative Sentiment: Longer-term risks remain from drug-pricing pressure and potential healthcare-policy changes. These concerns could limit margins even as McKesson expands into higher-growth specialty and biopharmaceutical services. Zacks McKesson risks
McKesson Stock Performance
McKesson stock opened at $898.06 on Thursday. The firm has a market cap of $104.70 billion, a PE ratio of 24.03, a P/E/G ratio of 1.78 and a beta of 0.30. The firm’s 50 day moving average price is $827.60 and its two-hundred day moving average price is $844.17. McKesson Corporation has a twelve month low of $677.28 and a twelve month high of $999.00.
McKesson (NYSE:MCK – Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $9.56 by $0.37. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The company had revenue of $105.38 billion during the quarter, compared to the consensus estimate of $103.88 billion. During the same quarter in the prior year, the firm earned $8.26 EPS. The company’s revenue was up 7.7% compared to the same quarter last year. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. Equities analysts anticipate that McKesson Corporation will post 44.65 EPS for the current fiscal year.
McKesson Increases Dividend
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be given a dividend of $0.94 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This is a positive change from McKesson’s previous quarterly dividend of $0.82. This represents a $3.76 dividend on an annualized basis and a yield of 0.4%. McKesson’s payout ratio is 10.06%.
Insider Transactions at McKesson
In other news, CEO Brian S. Tyler sold 8,463 shares of the firm’s stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $793.56, for a total transaction of $6,715,898.28. Following the completion of the sale, the chief executive officer directly owned 5,919 shares of the company’s stock, valued at $4,697,081.64. This trade represents a 58.84% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradley E. Lerman sold 301 shares of McKesson stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $892.33, for a total value of $268,591.33. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 23,111 shares of company stock worth $18,011,274 in the last ninety days. Company insiders own 0.06% of the company’s stock.
McKesson Profile
McKesson Corporation (NYSE: MCK) is a global healthcare services and distribution company that supplies pharmaceuticals, medical-surgical products and health care technology solutions. Founded in 1833 and headquartered in Irving, Texas, McKesson operates across the drug distribution and healthcare services value chain, connecting manufacturers, pharmacies, hospitals and health systems to help manage the movement of medicines and clinical supplies.
The company’s core activities include pharmaceutical wholesale distribution and logistics, specialty pharmacy services, and the provision of medical-surgical supplies to acute and non-acute care providers.
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