Abacus FCF Advisors LLC Takes Position in McKesson Corporation $MCK

Key Points

• Abacus FCF Advisors initiated a McKesson position by purchasing 11,160 shares valued at approximately $8.4 million, representing 1.5% of its portfolio. Institutional investors collectively own 85.07% of McKesson.
• McKesson exceeded quarterly expectations, reporting adjusted EPS of $9.93 versus the $9.56 consensus and revenue of $105.38 billion, up 7.7% year over year.
• The company increased its quarterly dividend from $0.82 to $0.94 per share, while analysts maintain a “Moderate Buy” consensus rating with an average price target of $973.44. Insiders, however, sold 29,049 shares worth about $22.5 million over the past 90 days.

Abacus FCF Advisors LLC purchased a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 11,160 shares of the company's stock, valued at approximately $8,432,000. McKesson makes up 1.5% of Abacus FCF Advisors LLC's portfolio, making the stock its 28th biggest holding.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. University of Texas Texas AM Investment Management Co. acquired a new position in McKesson in the 4th quarter valued at about $25,000. Swiss RE Ltd. acquired a new position in shares of McKesson in the fourth quarter valued at approximately $26,000. State of Wyoming purchased a new stake in shares of McKesson during the second quarter worth approximately $29,000. Kingdom Financial Group LLC. purchased a new stake in shares of McKesson during the fourth quarter worth approximately $33,000. Finally, Birchwood Financial Partners Inc. acquired a new stake in shares of McKesson during the fourth quarter worth $33,000. 85.07% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at McKesson

In other McKesson news, CEO Brian S. Tyler sold 8,463 shares of McKesson stock in a transaction on Tuesday, July 7th. The shares were sold at an average price of $793.56, for a total value of $6,715,898.28. Following the transaction, the chief executive officer owned 5,919 shares in the company, valued at $4,697,081.64. This trade represents a 58.84% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michele Lau sold 3,550 shares of the business's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $761.09, for a total transaction of $2,701,869.50. Following the sale, the executive vice president directly owned 3,247 shares of the company's stock, valued at $2,471,259.23. This represents a 52.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 29,049 shares of company stock worth $22,530,626. 0.06% of the stock is currently owned by insiders.

McKesson Trading Down 1.8%

NYSE:MCK opened at $853.53 on Thursday. The company has a market capitalization of $99.51 billion, a P/E ratio of 22.84, a price-to-earnings-growth ratio of 1.71 and a beta of 0.30. The firm has a 50-day moving average price of $818.34 and a two-hundred day moving average price of $843.66. McKesson Corporation has a twelve month low of $673.38 and a twelve month high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $9.56 by $0.37. The company had revenue of $105.38 billion for the quarter, compared to the consensus estimate of $103.88 billion. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The company's revenue for the quarter was up 7.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $8.26 earnings per share. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. On average, equities research analysts predict that McKesson Corporation will post 44.65 earnings per share for the current year.

McKesson Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be issued a dividend of $0.94 per share. This represents a $3.76 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Tuesday, September 1st. This is an increase from McKesson's previous quarterly dividend of $0.82. McKesson's payout ratio is currently 8.78%.

Wall Street Analysts Forecast Growth

MCK has been the subject of several analyst reports. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $875.00 price target on shares of McKesson in a report on Friday, May 8th. TD Cowen boosted their target price on McKesson from $989.00 to $1,006.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Royal Bank Of Canada began coverage on McKesson in a research note on Wednesday. They set a "sector perform" rating and a $845.00 target price for the company. Citigroup raised their price target on McKesson from $945.00 to $1,000.00 and gave the company a "buy" rating in a report on Friday, July 24th. Finally, Weiss Ratings downgraded McKesson from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, July 7th. Fourteen analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $973.44.

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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