Bank of America Corp DE Acquires New Stake in McKesson Corporation $MCK

Key Points

• Bank of America acquired 1.32 million McKesson shares worth approximately $999 million, giving it about a 1.13% stake. Institutional investors and hedge funds collectively own 85.07% of McKesson.
• Analysts maintain a generally positive outlook, with 14 Buy ratings and four Holds. McKesson has a “Moderate Buy” consensus rating and an average price target of $973.44.
• McKesson exceeded quarterly expectations with $9.93 in EPS and $105.38 billion in revenue, while revenue rose 7.7% year over year. The company also increased its quarterly dividend from $0.82 to $0.94 per share.

Bank of America Corp DE acquired a new stake in McKesson Corporation (NYSE:MCK - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 1,321,991 shares of the company's stock, valued at approximately $998,896,000. Bank of America Corp DE owned approximately 1.13% of McKesson as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds also recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in McKesson during the second quarter worth approximately $8,156,743,000. State Street Corp grew its holdings in McKesson by 0.5% in the 4th quarter. State Street Corp now owns 5,780,179 shares of the company's stock valued at $4,746,118,000 after buying an additional 29,660 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of McKesson by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 2,857,344 shares of the company's stock worth $2,333,520,000 after acquiring an additional 25,082 shares during the last quarter. Franklin Resources Inc. increased its stake in shares of McKesson by 5.4% in the 4th quarter. Franklin Resources Inc. now owns 2,825,954 shares of the company's stock worth $2,318,102,000 after acquiring an additional 144,633 shares during the last quarter. Finally, Norges Bank purchased a new position in shares of McKesson during the 4th quarter worth $1,651,137,000. Institutional investors and hedge funds own 85.07% of the company's stock.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Royal Bank Of Canada reissued a "sector perform" rating and set a $845.00 price target on shares of McKesson in a research report on Monday. Weiss Ratings upgraded shares of McKesson from a "buy (b-)" rating to a "buy (b)" rating in a research report on Friday, September 4th. TD Cowen lifted their target price on shares of McKesson from $989.00 to $1,006.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. UBS Group boosted their target price on shares of McKesson from $1,050.00 to $1,080.00 and gave the company a "buy" rating in a report on Thursday, August 6th. Finally, Citigroup increased their price target on shares of McKesson from $945.00 to $1,000.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Fourteen research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, McKesson currently has an average rating of "Moderate Buy" and a consensus price target of $973.44.

McKesson Stock Performance

NYSE MCK opened at $910.95 on Tuesday. The firm has a market cap of $106.21 billion, a price-to-earnings ratio of 24.38, a PEG ratio of 1.75 and a beta of 0.30. The firm has a 50 day simple moving average of $862.72 and a 200-day simple moving average of $840.19. McKesson Corporation has a one year low of $687.68 and a one year high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, topping the consensus estimate of $9.56 by $0.37. The firm had revenue of $105.38 billion for the quarter, compared to the consensus estimate of $103.88 billion. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The firm's revenue for the quarter was up 7.7% on a year-over-year basis. During the same period in the prior year, the firm earned $8.26 EPS. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. Equities analysts predict that McKesson Corporation will post 44.65 EPS for the current fiscal year.

McKesson Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be issued a $0.94 dividend. This represents a $3.76 dividend on an annualized basis and a yield of 0.4%. This is a boost from McKesson's previous quarterly dividend of $0.82. The ex-dividend date is Tuesday, September 1st. McKesson's dividend payout ratio (DPR) is 10.06%.

Insider Buying and Selling

In other McKesson news, Director Bradley E. Lerman sold 301 shares of the business's stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $892.33, for a total transaction of $268,591.33. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Brian S. Tyler sold 8,463 shares of the stock in a transaction that occurred on Tuesday, July 7th. The shares were sold at an average price of $793.56, for a total transaction of $6,715,898.28. Following the completion of the sale, the chief executive officer directly owned 5,919 shares in the company, valued at approximately $4,697,081.64. This represents a 58.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 17,338 shares of company stock valued at $13,643,366 in the last three months. 0.06% of the stock is owned by corporate insiders.

McKesson Company Profile

McKesson Corporation is a healthcare services and distribution company that supplies pharmaceuticals, specialty drugs, medical products and related services to pharmacies, hospitals, health systems, physicians and other healthcare providers. Its operations support the movement of prescription medicines and medical-surgical supplies from manufacturers to healthcare organizations and patients.

The company's businesses include pharmaceutical distribution, specialty pharmaceutical services, medical-surgical supply distribution and technology solutions for pharmacies and other healthcare providers.

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