Act Two Investors LLC Buys New Holdings in McKesson Corporation $MCK

Key Points

• Act Two Investors LLC initiated a McKesson position by purchasing 8,920 shares worth approximately $6.74 million, while institutional investors overall own 85.07% of the company.
• McKesson exceeded quarterly expectations, reporting $9.93 in EPS and $105.38 billion in revenue, with revenue up 7.7% year over year. The company also raised its quarterly dividend to $0.94 per share.
• Analysts maintain a positive outlook, with a consensus “Moderate Buy” rating and a $977 price target; shares recently traded at $869.73.

Act Two Investors LLC bought a new position in McKesson Corporation (NYSE:MCK - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund bought 8,920 shares of the company's stock, valued at approximately $6,740,000. McKesson makes up about 1.4% of Act Two Investors LLC's holdings, making the stock its 18th biggest holding.

A number of other hedge funds and other institutional investors have also recently modified their holdings of MCK. Horizon Investments LLC boosted its stake in shares of McKesson by 125.4% during the 4th quarter. Horizon Investments LLC now owns 8,679 shares of the company's stock worth $7,119,000 after purchasing an additional 4,828 shares during the period. Concurrent Investment Advisors LLC grew its holdings in McKesson by 62.9% during the 4th quarter. Concurrent Investment Advisors LLC now owns 3,158 shares of the company's stock valued at $2,590,000 after purchasing an additional 1,219 shares during the last quarter. Walter Public Investments Inc. purchased a new stake in McKesson in the 4th quarter worth about $6,538,000. Artemis Investment Management LLP raised its position in McKesson by 149.9% in the 4th quarter. Artemis Investment Management LLP now owns 11,671 shares of the company's stock worth $9,574,000 after purchasing an additional 7,000 shares during the period. Finally, North Dakota State Investment Board bought a new stake in McKesson in the fourth quarter worth about $3,969,000. Institutional investors own 85.07% of the company's stock.

McKesson Trading Up 1.1%

MCK opened at $869.73 on Wednesday. McKesson Corporation has a 12-month low of $667.50 and a 12-month high of $999.00. The business's fifty day simple moving average is $817.06 and its 200-day simple moving average is $843.43. The company has a market capitalization of $101.40 billion, a price-to-earnings ratio of 23.27, a PEG ratio of 1.71 and a beta of 0.30.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 EPS for the quarter, beating the consensus estimate of $9.56 by $0.37. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%.The firm had revenue of $105.38 billion for the quarter, compared to analyst estimates of $103.88 billion. During the same quarter last year, the firm posted $8.26 earnings per share. The business's revenue for the quarter was up 7.7% on a year-over-year basis. 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 EPS for the current year.

McKesson Increases Dividend

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

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on MCK shares. TD Cowen increased their price target on McKesson from $989.00 to $1,006.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Evercore restated an "outperform" rating on shares of McKesson in a report on Thursday, August 6th. JPMorgan Chase & Co. cut their price objective on McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. UBS Group increased their target price on McKesson from $1,050.00 to $1,080.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Finally, William Blair started coverage on McKesson in a research report on Tuesday, April 28th. They set an "outperform" rating for the company. Fourteen equities research analysts have rated the stock with a Buy rating and three 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 target price of $977.00.

Insider Activity

In related news, EVP Michele Lau sold 3,550 shares of McKesson stock in a transaction that occurred 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 transaction, the executive vice president directly owned 3,247 shares of the company's stock, valued at $2,471,259.23. This trade represents a 52.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the business's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $764.00, for a total transaction of $101,612.00. Following the completion of the transaction, the chief accounting officer directly owned 632 shares of the company's stock, valued at $482,848. This trade represents a 17.39% decrease in their position. 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. In the last quarter, insiders sold 29,049 shares of company stock valued at $22,530,626. 0.06% of the stock is currently owned by corporate insiders.

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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