Allstate Corp Boosts Holdings in McKesson Corporation $MCK

Key Points

• Allstate Corp more than doubled its stake in McKesson in the fourth quarter, increasing holdings by 106.7% to 9,321 shares valued at about $7.65 million.
• McKesson reported better-than-expected adjusted earnings of $11.69 per share for the quarter, though revenue of $96.3 billion came in below estimates.
• The company declared a quarterly dividend of $0.82 per share, and analysts currently rate the stock a Moderate Buy with an average price target of $968.87.

Allstate Corp raised its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 106.7% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 9,321 shares of the company's stock after buying an additional 4,811 shares during the quarter. Allstate Corp's holdings in McKesson were worth $7,646,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Brighton Jones LLC raised its position in shares of McKesson by 46.3% in the 4th quarter. Brighton Jones LLC now owns 2,523 shares of the company's stock valued at $1,438,000 after purchasing an additional 798 shares in the last quarter. Caxton Associates LLP bought a new stake in shares of McKesson in the 1st quarter valued at approximately $233,000. Sivia Capital Partners LLC grew its stake in McKesson by 77.9% during the 2nd quarter. Sivia Capital Partners LLC now owns 685 shares of the company's stock worth $502,000 after buying an additional 300 shares during the last quarter. Treasurer of the State of North Carolina grew its stake in McKesson by 0.9% during the 2nd quarter. Treasurer of the State of North Carolina now owns 58,623 shares of the company's stock worth $42,958,000 after buying an additional 508 shares during the last quarter. Finally, Osterweis Capital Management Inc. bought a new position in McKesson during the 2nd quarter worth $166,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

McKesson Trading Down 1.3%

Shares of McKesson stock opened at $756.11 on Wednesday. The stock has a 50-day moving average price of $830.95 and a 200 day moving average price of $854.59. The company has a market cap of $90.89 billion, a P/E ratio of 19.65, a P/E/G ratio of 1.14 and a beta of 0.35. McKesson Corporation has a 1 year low of $637.00 and a 1 year high of $999.00.

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

McKesson Announces Dividend

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

Analysts Set New Price Targets

A number of research analysts recently commented on the company. William Blair assumed coverage on McKesson in a research note on Tuesday, April 28th. They set an "outperform" rating for the company. Wells Fargo & Company decreased their price target on McKesson from $925.00 to $812.00 and set an "equal weight" rating for the company in a research note on Tuesday, May 12th. Citigroup decreased their price target on McKesson from $975.00 to $945.00 and set a "buy" rating for the company in a research note on Thursday, May 14th. UBS Group increased their price target on McKesson from $1,000.00 to $1,050.00 and gave the stock a "buy" rating in a research note on Friday, May 8th. Finally, Weiss Ratings cut McKesson from a "buy (b+)" rating to a "buy (b)" rating in a research note on Monday, May 18th. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $968.87.

Insiders Place Their Bets

In other McKesson news, EVP Michele Lau sold 2,725 shares of the company's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $990.00, for a total value of $2,697,750.00. Following the transaction, the executive vice president directly owned 3,247 shares of the company's stock, valued at $3,214,530. This represents a 45.63% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.08% of the stock is currently owned by 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.