AdvisorShares Investments LLC Invests $7.63 Million in McKesson Corporation $MCK

Key Points

• AdvisorShares Investments LLC opened a new position in McKesson in the fourth quarter, buying 9,302 shares worth about $7.63 million. The stake makes McKesson the fund’s 11th-largest holding.
• Several Wall Street analysts remain constructive on McKesson, with 14 Buy ratings and three Hold ratings. The consensus price target is $968.87, implying upside from recent levels.
• McKesson reported better-than-expected EPS of $11.69 for the latest quarter and raised its full-year outlook to 43.8–44.6 EPS. The company also announced a quarterly dividend of $0.82 per share, payable July 1.

AdvisorShares Investments LLC purchased a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) in the 4th quarter, according to the company in its most recent filing with the SEC. The fund purchased 9,302 shares of the company's stock, valued at approximately $7,630,000. McKesson accounts for approximately 1.3% of AdvisorShares Investments LLC's holdings, making the stock its 11th biggest position.

Other institutional investors also recently modified their holdings of the company. GGM Financials LLC acquired a new stake in shares of McKesson during the 3rd quarter worth approximately $25,000. State of Wyoming acquired a new position in McKesson during the second quarter valued at approximately $29,000. Hopwood Financial Services Inc. acquired a new position in McKesson during the third quarter valued at approximately $31,000. Board of the Pension Protection Fund acquired a new position in McKesson during the fourth quarter valued at approximately $33,000. Finally, Kingdom Financial Group LLC. bought a new position in McKesson in the fourth quarter valued at approximately $33,000. Institutional investors and hedge funds own 85.07% of the company's stock.

Wall Street Analyst Weigh In

Several analysts have issued reports on MCK shares. Citigroup dropped their price target on shares of McKesson from $975.00 to $945.00 and set a "buy" rating on the stock in a research report on Thursday, May 14th. Mizuho upped their price objective on shares of McKesson from $880.00 to $885.00 and gave the company a "neutral" rating in a report on Thursday, February 5th. Wells Fargo & Company decreased their price objective on shares of McKesson from $925.00 to $812.00 and set an "equal weight" rating on the stock in a report on Tuesday, May 12th. William Blair assumed coverage on shares of McKesson in a report on Tuesday, April 28th. They issued an "outperform" rating on the stock. Finally, Leerink Partners reiterated an "outperform" rating and issued a $1,085.00 price objective on shares of McKesson in a report on Thursday, March 5th. Fourteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, McKesson currently has an average rating of "Moderate Buy" and a consensus target price of $968.87.

Insider Transactions at McKesson

In related news, EVP Michele Lau sold 3,550 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $761.09, for a total value of $2,701,869.50. Following the completion of the transaction, the executive vice president owned 3,247 shares in the company, valued at $2,471,259.23. This trade represents a 52.23% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thomas L. Rodgers sold 2,388 shares of the firm's 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 $1,817,482.92. Following the completion of the transaction, the executive vice president owned 3,090 shares of the company's stock, valued at approximately $2,351,768.10. This trade represents a 43.59% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 8,663 shares of company stock valued at $7,217,102 in the last three months. Company insiders own 0.08% of the company's stock.

McKesson Stock Down 2.0%

Shares of McKesson stock opened at $741.47 on Friday. The company has a market capitalization of $89.12 billion, a price-to-earnings ratio of 19.27, a PEG ratio of 1.13 and a beta of 0.35. McKesson Corporation has a 12-month low of $637.00 and a 12-month high of $999.00. The firm's 50-day moving average price is $819.93 and its two-hundred day moving average price is $852.44.

McKesson (NYSE:MCK - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $11.69 EPS for the quarter, topping analysts' consensus estimates of $11.56 by $0.13. The firm had revenue of $96.30 billion during the quarter, compared to analysts' expectations of $101.35 billion. McKesson had a net margin of 1.18% and a negative return on equity of 345.35%. The business's revenue for the quarter was up 6.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned $10.12 earnings per share. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. On average, sell-side analysts expect that McKesson Corporation will post 44.29 earnings per share for the current year.

McKesson Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be issued a $0.82 dividend. The ex-dividend date of this dividend is Monday, June 1st. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.4%. McKesson's dividend payout ratio is 8.53%.

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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