Arax Advisory Partners Sells 2,817 Shares of McKesson Corporation $MCK

Key Points

• Arax Advisory Partners cut its McKesson stake by 51.7% in the fourth quarter, selling 2,817 shares and leaving it with 2,636 shares valued at about $2.16 million.
• Wall Street sentiment remains positive, with 14 analysts rating McKesson a Buy and three Hold, giving the stock a consensus “Moderate Buy” rating and an average target price of $960.53.
• McKesson reported better-than-expected quarterly earnings of $11.69 per share, though revenue came in below estimates; the company also declared a quarterly dividend of $0.82 per share.

Arax Advisory Partners reduced its position in McKesson Corporation (NYSE:MCK - Free Report) by 51.7% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,636 shares of the company's stock after selling 2,817 shares during the period. Arax Advisory Partners' holdings in McKesson were worth $2,162,000 at the end of the most recent quarter.

A number of other large investors also recently modified their holdings of the company. Meiji Yasuda Asset Management Co Ltd. lifted its holdings in shares of McKesson by 0.5% in the 4th 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 in the last quarter. Investment Research Partners LLC lifted its stake in McKesson by 0.7% during the 4th quarter. Investment Research Partners LLC now owns 1,624 shares of the company's stock valued at $1,332,000 after acquiring an additional 11 shares in the last quarter. Obsidian Personal Planning Solutions LLC lifted its stake in McKesson by 2.9% during the 3rd quarter. Obsidian Personal Planning Solutions LLC now owns 426 shares of the company's stock valued at $346,000 after acquiring an additional 12 shares in the last quarter. LRI Investments LLC increased its position in shares of McKesson by 12.1% during the 4th quarter. LRI Investments LLC now owns 111 shares of the company's stock valued at $91,000 after purchasing an additional 12 shares during the last quarter. Finally, Macroview Investment Management LLC increased its position in shares of McKesson by 3.9% during the 4th quarter. Macroview Investment Management LLC now owns 322 shares of the company's stock valued at $264,000 after purchasing an additional 12 shares during the last quarter. 85.07% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several brokerages have recently issued reports on MCK. William Blair began coverage on McKesson in a research report on Tuesday, April 28th. They set an "outperform" rating for the company. Wall Street Zen raised McKesson from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Wells Fargo & Company decreased their target price on McKesson from $925.00 to $812.00 and set an "equal weight" rating for the company in a research report on Tuesday, May 12th. JPMorgan Chase & Co. decreased their target price on McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. Finally, Evercore reaffirmed an "outperform" rating on shares of McKesson in a research report on Thursday, March 5th. Fourteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $960.53.

Insiders Place Their Bets

In other news, CAO Napoleon B. Rutledge, Jr. sold 133 shares of McKesson stock in a transaction dated 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 sale, the chief accounting officer owned 632 shares in the company, valued at approximately $482,848. This trade represents a 17.39% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed 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 McKesson stock in a transaction dated 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 sale, the executive vice president owned 3,247 shares of the company's stock, valued at approximately $2,471,259.23. This trade represents a 52.23% 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. In the last 90 days, insiders have sold 11,822 shares of company stock worth $8,986,212. Insiders own 0.08% of the company's stock.

McKesson Trading Down 0.6%

Shares of MCK opened at $779.35 on Tuesday. The company has a market cap of $93.68 billion, a PE ratio of 20.26, a price-to-earnings-growth ratio of 1.29 and a beta of 0.31. The stock has a 50-day moving average price of $795.97 and a 200-day moving average price of $845.41. McKesson Corporation has a 12-month low of $637.00 and a 12-month high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported $11.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 company's revenue for the quarter was up 6.0% on a year-over-year basis. During the same quarter last year, the company posted $10.12 EPS. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. As a group, analysts predict that McKesson Corporation will post 44.28 earnings per share for the current year.

McKesson Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be given a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Monday, June 1st. McKesson's dividend payout ratio (DPR) is 8.53%.

About McKesson

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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