Atom Investors LP Boosts Stock Position in McKesson Corporation $MCK

Key Points

• Atom Investors LP increased its McKesson stake by 282.1% in the fourth quarter, ending with 10,505 shares valued at about $8.6 million. McKesson is now its 23rd-largest holding.
• Institutional ownership remains heavy, with 85.07% of McKesson shares held by hedge funds and other institutions. Several large firms, including Vanguard and State Street, also added to their positions.
• McKesson recently beat earnings expectations, reporting $11.69 EPS versus $11.56 expected, and it also announced a quarterly dividend of $0.82 per share. However, company insiders, including the CEO, sold shares in recent weeks.

Atom Investors LP lifted its position in shares of McKesson Corporation (NYSE:MCK - Free Report) by 282.1% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 10,505 shares of the company's stock after purchasing an additional 7,756 shares during the period. McKesson accounts for approximately 0.7% of Atom Investors LP's portfolio, making the stock its 23rd largest position. Atom Investors LP's holdings in McKesson were worth $8,617,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of the company. Vanguard Group Inc. boosted its holdings in shares of McKesson by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 12,104,719 shares of the company's stock worth $9,929,380,000 after purchasing an additional 73,109 shares during the period. State Street Corp boosted its holdings in shares of McKesson by 0.5% during the fourth quarter. State Street Corp now owns 5,780,179 shares of the company's stock worth $4,746,118,000 after purchasing an additional 29,660 shares during the period. Geode Capital Management LLC boosted its holdings in shares of McKesson by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 2,857,344 shares of the company's stock worth $2,333,520,000 after purchasing an additional 25,082 shares during the period. Franklin Resources Inc. boosted its holdings in shares of McKesson by 5.4% during the fourth quarter. Franklin Resources Inc. now owns 2,825,954 shares of the company's stock worth $2,318,102,000 after purchasing an additional 144,633 shares during the period. Finally, Alliancebernstein L.P. boosted its holdings in shares of McKesson by 5.6% during the third quarter. Alliancebernstein L.P. now owns 2,394,699 shares of the company's stock worth $1,850,001,000 after purchasing an additional 126,684 shares during the period. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on MCK shares. Leerink Partners reiterated an "outperform" rating and set a $1,085.00 target price on shares of McKesson in a report on Thursday, March 5th. Weiss Ratings lowered shares of McKesson from a "buy (b+)" rating to a "buy (b)" rating in a report on Monday, May 18th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and issued a $875.00 price target on shares of McKesson in a research note on Friday, May 8th. William Blair started coverage on shares of McKesson in a research note on Tuesday, April 28th. They issued an "outperform" rating for the company. Finally, Evercore reissued an "outperform" rating on shares of McKesson in a research note on Thursday, March 5th. Fourteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, McKesson presently has an average rating of "Moderate Buy" and an average target price of $960.53.

Insider Buying and Selling at McKesson

In related news, CEO Brian S. Tyler sold 4,929 shares of the firm'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 transaction of $3,760,827.00. Following the completion of the sale, the chief executive officer owned 22,845 shares of the company's stock, valued at $17,430,735. This trade represents a 17.75% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thomas L. Rodgers sold 2,388 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $761.09, for a total transaction of $1,817,482.92. Following the sale, the executive vice president directly owned 3,090 shares of the company's stock, valued at $2,351,768.10. This trade represents a 43.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 11,822 shares of company stock worth $8,986,212 over the last three months. Company insiders own 0.08% of the company's stock.

McKesson Stock Performance

Shares of NYSE MCK opened at $786.55 on Wednesday. McKesson Corporation has a fifty-two week low of $637.00 and a fifty-two week high of $999.00. The company has a 50 day simple moving average of $794.00 and a two-hundred day simple moving average of $844.72. The company has a market capitalization of $92.09 billion, a price-to-earnings ratio of 20.45, a P/E/G ratio of 1.28 and a beta of 0.31.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $11.69 earnings per share for the quarter, beating 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 quarter last year, the firm earned $10.12 earnings per share. The business's revenue for the quarter was up 6.0% on a year-over-year basis. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. On average, analysts forecast that McKesson Corporation will post 44.28 earnings per share for the current fiscal 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 dividend of $0.82 per share. The ex-dividend date of this dividend is Monday, June 1st. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.4%. McKesson's dividend payout ratio (DPR) is currently 8.53%.

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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