Arrowstreet Capital Limited Partnership Has $1.13 Billion Position in McKesson Corporation $MCK

Key Points

• Arrowstreet Capital boosted its McKesson stake by 6.8% in the fourth quarter, ending with 1.38 million shares valued at about $1.13 billion. McKesson is now its 22nd-largest holding and makes up roughly 0.7% of its portfolio.
• Wall Street sentiment remains generally positive: analysts have a Moderate Buy consensus on McKesson, with 14 Buy ratings and 3 Hold ratings. The average price target is $960.53, though some firms recently trimmed their targets.
• McKesson reported quarterly EPS of $11.69, beating estimates, and it also announced a $0.82 quarterly dividend to be paid July 1. However, company executives recently sold shares, including CEO Brian S. Tyler under a pre-arranged trading plan.

Arrowstreet Capital Limited Partnership increased its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 6.8% during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor owned 1,376,276 shares of the company's stock after acquiring an additional 87,513 shares during the period. McKesson comprises about 0.7% of Arrowstreet Capital Limited Partnership's investment portfolio, making the stock its 22nd biggest position. Arrowstreet Capital Limited Partnership owned 1.12% of McKesson worth $1,128,945,000 at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. Swiss RE Ltd. acquired a new stake in shares of McKesson during the 4th quarter valued at about $26,000. GGM Financials LLC acquired a new stake in shares of McKesson during the 3rd quarter valued at about $25,000. State of Wyoming acquired a new stake in shares of McKesson during the 2nd quarter valued at about $29,000. Board of the Pension Protection Fund bought a new position in McKesson during the 4th quarter valued at about $33,000. Finally, Kingdom Financial Group LLC. bought a new position in McKesson during the 4th quarter valued at about $33,000. 85.07% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on MCK. Barclays cut their price target on shares of McKesson from $1,050.00 to $925.00 and set an "overweight" rating for the company in a report on Wednesday. Evercore reissued an "outperform" rating on shares of McKesson in a report on Thursday, March 5th. Wall Street Zen raised shares of McKesson from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Leerink Partners reissued an "outperform" rating and set a $1,085.00 price target on shares of McKesson in a report on Thursday, March 5th. Finally, Citigroup cut their price target on shares of McKesson from $975.00 to $945.00 and set a "buy" rating for the company in a report on Thursday, May 14th. Fourteen investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, McKesson presently has a consensus rating of "Moderate Buy" and a consensus target price of $960.53.

McKesson Price Performance

MCK opened at $783.88 on Friday. The company has a market cap of $94.22 billion, a price-to-earnings ratio of 20.38, a price-to-earnings-growth ratio of 1.29 and a beta of 0.31. The firm has a 50 day simple moving average of $798.10 and a 200 day simple moving average of $846.35. McKesson Corporation has a fifty-two week low of $637.00 and a fifty-two week high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $11.69 earnings per share for the quarter, topping analysts' consensus estimates of $11.56 by $0.13. McKesson had a net margin of 1.18% and a negative return on equity of 345.35%. The business had revenue of $96.30 billion during the quarter, compared to the consensus estimate of $101.35 billion. During the same period in the previous year, the firm posted $10.12 earnings per share. McKesson's revenue for the quarter was up 6.0% compared to the same quarter last year. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. As a group, analysts expect that McKesson Corporation will post 44.28 EPS for the current year.

McKesson Dividend Announcement

The business also recently declared 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. This represents a $3.28 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Monday, June 1st. McKesson's dividend payout ratio is 8.53%.

Insider Activity at McKesson

In other news, CEO Brian S. Tyler sold 4,929 shares of the company's stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $763.00, for a total value of $3,760,827.00. Following the completion of the transaction, the chief executive officer owned 22,845 shares in the company, valued at $17,430,735. This represents a 17.75% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the stock in a transaction on Friday, June 5th. The stock was sold at an average price of $764.00, for a total transaction of $101,612.00. Following the transaction, the chief accounting officer owned 632 shares of the company's stock, valued at $482,848. The trade was a 17.39% 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. Insiders have sold 11,822 shares of company stock worth $8,986,212 over the last ninety days. 0.08% of the stock is owned by corporate insiders.

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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