Advisors Capital Management LLC Invests $37.96 Million in McKesson Corporation $MCK

Key Points

• Advisors Capital Management purchased 50,234 McKesson shares worth approximately $37.96 million, while institutional investors collectively own 85.07% of the company.
• McKesson reported quarterly adjusted earnings of $9.93 per share, beating estimates of $9.56, while revenue rose 7.7% year over year to $105.38 billion.
• The company increased its quarterly dividend from $0.82 to $0.94 per share. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $973.44.

Advisors Capital Management LLC purchased a new stake in shares of McKesson Corporation (NYSE:MCK - Free Report) during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm purchased 50,234 shares of the company's stock, valued at approximately $37,957,000.

Other large investors have also recently made changes to their positions in the company. Meiji Yasuda Asset Management Co Ltd. grew its stake in shares of McKesson by 0.5% in the fourth quarter. Meiji Yasuda Asset Management Co Ltd. now owns 2,262 shares of the company's stock worth $1,855,000 after purchasing an additional 11 shares during the last quarter. Investment Research Partners LLC grew its position in shares of McKesson by 0.7% in the 4th quarter. Investment Research Partners LLC now owns 1,624 shares of the company's stock worth $1,332,000 after buying an additional 11 shares during the last quarter. IHT Wealth Management LLC grew its position in shares of McKesson by 0.9% in the 4th quarter. IHT Wealth Management LLC now owns 1,196 shares of the company's stock worth $981,000 after buying an additional 11 shares during the last quarter. LRI Investments LLC increased its stake in shares of McKesson by 12.1% during the fourth quarter. LRI Investments LLC now owns 111 shares of the company's stock valued at $91,000 after buying an additional 12 shares during the period. Finally, Macroview Investment Management LLC raised its holdings in shares of McKesson by 3.9% during the fourth quarter. Macroview Investment Management LLC now owns 322 shares of the company's stock valued at $264,000 after acquiring an additional 12 shares in the last quarter. 85.07% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, Director Bradley E. Lerman sold 301 shares of McKesson stock in a transaction on Monday, August 10th. The stock was sold at an average price of $892.33, for a total transaction of $268,591.33. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Brian S. Tyler sold 8,463 shares of McKesson stock in a transaction dated 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 directly owned 5,919 shares in the company, valued at approximately $4,697,081.64. The trade was a 58.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 29,049 shares of company stock worth $22,530,626 in the last quarter. Company insiders own 0.06% of the company's stock.

McKesson Price Performance

NYSE:MCK opened at $841.21 on Friday. The firm has a market capitalization of $98.08 billion, a P/E ratio of 22.51, a PEG ratio of 1.68 and a beta of 0.30. McKesson Corporation has a one year low of $673.38 and a one year high of $999.00. The company's 50-day simple moving average is $819.40 and its 200 day simple moving average is $843.73.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, beating 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 business had revenue of $105.38 billion during the quarter, compared to the consensus estimate of $103.88 billion. During the same quarter last year, the firm earned $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 expect that McKesson Corporation will post 44.65 earnings per share for the current fiscal year.

McKesson Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be given a $0.94 dividend. The ex-dividend date is Tuesday, September 1st. This is a boost from McKesson's previous quarterly dividend of $0.82. This represents a $3.76 annualized dividend and a yield of 0.4%. McKesson's payout ratio is 10.06%.

Analyst Upgrades and Downgrades

Several research analysts have commented on MCK shares. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $875.00 price objective on shares of McKesson in a report on Friday, May 8th. Weiss Ratings cut shares of McKesson from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, July 7th. William Blair began coverage on shares of McKesson in a research note on Tuesday, April 28th. They issued an "outperform" rating for the company. Wells Fargo & Company raised their price objective on shares of McKesson from $812.00 to $933.00 and gave the stock an "equal weight" rating in a report on Tuesday, August 11th. Finally, Morgan Stanley reiterated an "overweight" rating on shares of McKesson in a report on Friday, August 7th. Fourteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, McKesson has a consensus rating of "Moderate Buy" and a consensus target price 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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