Bank of Nova Scotia Makes New Investment in McKesson Corporation $MCK

Key Points

• Bank of Nova Scotia acquired 34,602 McKesson shares worth approximately $26.1 million in the second quarter. Institutional investors and hedge funds collectively own 85.07% of the company.
• McKesson reported quarterly adjusted EPS of $9.93, beating estimates by $0.37, while revenue rose 7.7% year over year to $105.38 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $973.44.
• McKesson raised its quarterly dividend from $0.82 to $0.94 per share, equivalent to an annualized dividend of $3.76 and a 0.4% yield. Recent insider activity was negative, with insiders selling 29,049 shares worth about $22.5 million over 90 days.

Bank of Nova Scotia acquired a new stake in shares of McKesson Corporation (NYSE:MCK - Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm acquired 34,602 shares of the company's stock, valued at approximately $26,145,000.

Other institutional investors and hedge funds also recently made changes to their positions in the company. Brighton Jones LLC grew its stake in McKesson by 46.3% during the fourth quarter. Brighton Jones LLC now owns 2,523 shares of the company's stock worth $1,438,000 after buying an additional 798 shares during the last quarter. Caxton Associates LLP bought a new stake in McKesson during the 1st quarter worth approximately $233,000. Sivia Capital Partners LLC grew its position in McKesson by 77.9% during the 2nd quarter. Sivia Capital Partners LLC now owns 685 shares of the company's stock worth $502,000 after acquiring an additional 300 shares during the last quarter. Treasurer of the State of North Carolina increased its holdings in McKesson by 0.9% during the 2nd quarter. Treasurer of the State of North Carolina now owns 58,623 shares of the company's stock valued at $42,958,000 after purchasing an additional 508 shares in the last quarter. Finally, Osterweis Capital Management Inc. acquired a new stake in McKesson during the 2nd quarter valued at $166,000. Institutional investors and hedge funds own 85.07% of the company's stock.

McKesson Stock Performance

Shares of MCK opened at $862.27 on Monday. The firm has a market capitalization of $100.53 billion, a price-to-earnings ratio of 23.07, a PEG ratio of 1.69 and a beta of 0.30. The business's fifty day moving average price is $820.97 and its two-hundred day moving average price is $843.84. McKesson Corporation has a 52 week low of $673.38 and a 52 week high of $999.00.

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

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be given a dividend of $0.94 per share. This represents a $3.76 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date is Tuesday, September 1st. This is a boost from McKesson's previous quarterly dividend of $0.82. McKesson's dividend payout ratio is currently 8.78%.

Insider Buying and Selling

In related news, Director Bradley E. Lerman sold 301 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $892.33, for a total value of $268,591.33. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, EVP Michele Lau sold 3,550 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 $2,701,869.50. Following the completion of the transaction, the executive vice president directly owned 3,247 shares in the company, valued at approximately $2,471,259.23. The trade was a 52.23% 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. In the last ninety days, insiders have sold 29,049 shares of company stock worth $22,530,626. 0.06% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

MCK has been the topic of a number of recent analyst reports. TD Cowen boosted their price objective on McKesson from $989.00 to $1,006.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Wall Street Zen cut McKesson from a "buy" rating to a "hold" rating in a report on Saturday, June 27th. Citigroup raised their target price on McKesson from $945.00 to $1,000.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Barclays lifted their price target on McKesson from $925.00 to $1,000.00 and gave the company an "overweight" rating in a report on Wednesday. Finally, UBS Group upped their price target on shares of McKesson from $1,050.00 to $1,080.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Fourteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $973.44.

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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