Armistice Capital LLC Buys 5,510 Shares of McKesson Corporation $MCK

Key Points

• Armistice Capital LLC nearly doubled its McKesson position in Q4, buying 5,510 more shares to bring its total stake to 11,363 shares worth about $9.3 million.
• McKesson reported Q4 earnings of $11.69 per share, topping analyst expectations, though revenue of $96.3 billion came in below forecasts; the company also reaffirmed strong full-year EPS expectations.
• The company announced a quarterly dividend of $0.82 per share and saw mixed sentiment from analysts, with several price targets cut but a consensus rating of Moderate Buy.

Armistice Capital LLC increased its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 94.1% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 11,363 shares of the company's stock after buying an additional 5,510 shares during the quarter. Armistice Capital LLC's holdings in McKesson were worth $9,321,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also modified their holdings of the company. University of Texas Texas AM Investment Management Co. bought a new position in McKesson in the 4th quarter valued at $25,000. Swiss RE Ltd. bought a new position in McKesson in the 4th quarter valued at $26,000. GGM Financials LLC bought a new position in McKesson in the 3rd quarter valued at $25,000. State of Wyoming bought a new position in McKesson in the 2nd quarter valued at $29,000. Finally, Board of the Pension Protection Fund bought a new position in McKesson in the 4th quarter valued at $33,000. Institutional investors own 85.07% of the company's stock.

McKesson Trading Down 0.8%

NYSE:MCK opened at $779.00 on Thursday. McKesson Corporation has a 1 year low of $637.00 and a 1 year high of $999.00. The stock has a market cap of $91.21 billion, a price-to-earnings ratio of 20.25, a PEG ratio of 1.29 and a beta of 0.31. The stock has a 50-day moving average price of $792.46 and a two-hundred day moving average price of $843.97.

McKesson (NYSE:MCK - Get Free Report) last posted its 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. McKesson had a negative return on equity of 345.35% and a net margin of 1.18%.The firm had revenue of $96.30 billion during the quarter, compared to analysts' expectations of $101.35 billion. During the same period in the previous year, the firm earned $10.12 earnings per share. The company's revenue was up 6.0% on a year-over-year basis. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. Sell-side analysts forecast that McKesson Corporation will post 44.28 earnings per share for the current year.

McKesson Announces Dividend

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

Analyst Upgrades and Downgrades

MCK has been the subject of several research analyst reports. JPMorgan Chase & Co. cut their price objective 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. Barclays dropped their target price on McKesson from $1,050.00 to $925.00 and set an "overweight" rating for the company in a research report on Wednesday, June 10th. Wells Fargo & Company dropped 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. Wall Street Zen upgraded McKesson from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Finally, Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $875.00 price objective on shares of McKesson in a report on Friday, May 8th. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $960.53.

Insiders Place Their Bets

In other McKesson news, EVP Michele Lau sold 3,550 shares of the business's stock in a transaction dated Tuesday, May 26th. The stock was 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 directly owned 3,247 shares of the company's stock, valued at approximately $2,471,259.23. The trade was a 52.23% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brian S. Tyler sold 4,929 shares of the company's stock in a transaction dated Tuesday, June 9th. The stock was sold at an average price of $763.00, for a total value of $3,760,827.00. Following the transaction, the chief executive officer directly owned 22,845 shares of the company's stock, valued at $17,430,735. This represents a 17.75% 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 a total of 11,822 shares of company stock valued at $8,986,212 in the last three months. Insiders own 0.08% of the company's stock.

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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