Arrowstreet Capital Limited Partnership Trims Stake in McKesson Corporation $MCK

Key Points

• Arrowstreet Capital trimmed its McKesson stake by 4.7% in the first quarter, selling 64,112 shares and ending with 1,312,164 shares valued at about $1.14 billion. McKesson remained its 25th-largest holding.
• McKesson reported better-than-expected earnings for its latest quarter, with EPS of $11.69 versus consensus of $11.56, while revenue rose 6% year over year to $96.3 billion. The company also guided FY 2027 EPS at 43.8 to 44.6.
• The company raised its quarterly dividend by 15% to $0.94 per share, lifting the annualized payout to $3.76. Despite some insider selling and mixed analyst sentiment, Wall Street still rates the stock a Moderate Buy with an average price target of $959.

Arrowstreet Capital Limited Partnership cut its stake in McKesson Corporation (NYSE:MCK - Free Report) by 4.7% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,312,164 shares of the company's stock after selling 64,112 shares during the quarter. McKesson makes up approximately 0.6% of Arrowstreet Capital Limited Partnership's investment portfolio, making the stock its 25th largest position. Arrowstreet Capital Limited Partnership owned approximately 1.09% of McKesson worth $1,135,494,000 at the end of the most recent reporting period.

Other hedge funds have also bought and sold shares of the company. Norges Bank acquired a new position in shares of McKesson in the fourth quarter worth about $1,651,137,000. Swedbank AB grew its position in shares of McKesson by 42.2% during the 4th quarter. Swedbank AB now owns 886,283 shares of the company's stock valued at $727,009,000 after acquiring an additional 263,189 shares during the period. SurgoCap Partners LP increased its stake in shares of McKesson by 68.7% in the 3rd quarter. SurgoCap Partners LP now owns 452,261 shares of the company's stock valued at $349,390,000 after purchasing an additional 184,106 shares in the last quarter. Robeco Institutional Asset Management B.V. increased its stake in shares of McKesson by 73.7% in the 4th quarter. Robeco Institutional Asset Management B.V. now owns 432,578 shares of the company's stock valued at $354,839,000 after purchasing an additional 183,590 shares in the last quarter. Finally, Wellington Management Group LLP raised its holdings in McKesson by 32.9% in the 3rd quarter. Wellington Management Group LLP now owns 618,984 shares of the company's stock worth $478,190,000 after purchasing an additional 153,182 shares during the period. Hedge funds and other institutional investors own 85.07% of the company's stock.

McKesson Stock Performance

Shares of MCK stock opened at $824.71 on Friday. McKesson Corporation has a fifty-two week low of $637.00 and a fifty-two week high of $999.00. The stock's fifty day moving average is $778.42 and its two-hundred day moving average is $838.44. The firm has a market capitalization of $96.56 billion, a P/E ratio of 21.44, a PEG ratio of 1.34 and a beta of 0.31.

McKesson (NYSE:MCK - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported $11.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $11.56 by $0.13. The business had revenue of $96.30 billion during the quarter, compared to analyst estimates of $101.35 billion. McKesson had a net margin of 1.18% and a negative return on equity of 345.35%. The company'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 firm earned $10.12 earnings per share. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. On average, equities analysts forecast that McKesson Corporation will post 44.28 earnings per share for the current year.

McKesson Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be paid a dividend of $0.94 per share. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $3.76 annualized dividend and a yield of 0.5%. This is a boost from McKesson's previous quarterly dividend of $0.82. McKesson's dividend payout ratio is currently 8.53%.

Insider Buying and Selling at McKesson

In related news, EVP Michele Lau sold 3,550 shares of the stock in a transaction that occurred on 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 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 ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the business's stock in a transaction on Friday, June 5th. The stock was sold at an average price of $764.00, for a total value of $101,612.00. Following the transaction, the chief accounting officer directly owned 632 shares in the company, valued at $482,848. This trade represents a 17.39% decrease in their position. 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 have sold a total of 28,748 shares of company stock worth $22,262,035 in the last quarter. Insiders own 0.06% of the company's stock.

Key McKesson News

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson raised its quarterly dividend by 15% to $0.94 per share, a shareholder-friendly move that suggests strong underlying cash generation and could support investor sentiment. McKesson Corporation Raises Quarterly Dividend by 15% to $0.94 Per Share
• Positive Sentiment: Some coverage framed McKesson as a stock worth watching, reflecting continued investor interest in the name after its strong long-term performance. 1 S&P 500 Stock on Our Buy List and 2 Facing Challenges
• Neutral Sentiment: McKesson was also featured in “trending stock” and long-term performance articles, which indicate elevated attention but do not add a clear new fundamental catalyst. Is Trending Stock McKesson Corporation (MCK) a Buy Now?
• Negative Sentiment: TD Cowen reportedly lowered expectations for McKesson, and separate commentary noted the stock had recently underperformed the broader market, which may have weighed on sentiment. TD Cowen Has Lowered Expectations for McKesson NYSE: MCK Stock Price

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on MCK. William Blair initiated coverage on McKesson in a research report on Tuesday, April 28th. They set an "outperform" rating on the stock. 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. Bank of America reduced their target price on McKesson from $1,040.00 to $1,000.00 and set a "buy" rating for the company in a research note on Monday, April 6th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $875.00 target price on shares of McKesson in a research report on Friday, May 8th. Finally, Wall Street Zen lowered shares of McKesson from a "buy" rating to a "hold" rating in a report on Saturday, June 27th. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, McKesson currently has an average rating of "Moderate Buy" and an average price target of $959.00.

McKesson Company 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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