Bessemer Group Inc. Cuts Holdings in McKesson Corporation $MCK

Key Points

• Bessemer Group Inc. cut its McKesson stake by 29.9% in the fourth quarter, selling 155,892 shares and ending with 365,050 shares worth about $299.4 million.
• McKesson reported Q1 EPS of $11.69, beating estimates, while revenue rose 6% year over year to $96.3 billion, though sales still came in below analyst expectations.
• The company announced a quarterly dividend of $0.82 per share, payable July 1, and Wall Street remains broadly positive with an average rating of Moderate Buy and a consensus price target of $968.87.

Bessemer Group Inc. lessened its stake in McKesson Corporation (NYSE:MCK - Free Report) by 29.9% in the fourth quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 365,050 shares of the company's stock after selling 155,892 shares during the period. Bessemer Group Inc. owned approximately 0.30% of McKesson worth $299,446,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of MCK. J.W. Cole Advisors Inc. increased its position in shares of McKesson by 35.3% during the 3rd quarter. J.W. Cole Advisors Inc. now owns 5,089 shares of the company's stock valued at $3,931,000 after purchasing an additional 1,329 shares during the last quarter. Cullen Investment Group LTD. increased its position in shares of McKesson by 550.4% during the 4th quarter. Cullen Investment Group LTD. now owns 4,670 shares of the company's stock valued at $3,811,000 after purchasing an additional 3,952 shares during the last quarter. Private Wealth Partners LLC increased its position in shares of McKesson by 5.6% during the 3rd quarter. Private Wealth Partners LLC now owns 31,841 shares of the company's stock valued at $24,598,000 after purchasing an additional 1,682 shares during the last quarter. AlphaQuest LLC increased its position in shares of McKesson by 91.2% during the 3rd quarter. AlphaQuest LLC now owns 1,767 shares of the company's stock valued at $1,365,000 after purchasing an additional 843 shares during the last quarter. Finally, Envestnet Asset Management Inc. increased its position in shares of McKesson by 12.4% during the 3rd quarter. Envestnet Asset Management Inc. now owns 330,647 shares of the company's stock valued at $255,438,000 after purchasing an additional 36,451 shares during the last quarter. Hedge funds and other institutional investors own 85.07% of the company's stock.

Insiders Place Their Bets

In other McKesson news, Director Maria Martinez sold 349 shares of the stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $939.87, for a total value of $328,014.63. Following the completion of the sale, the director owned 301 shares in the company, valued at approximately $282,900.87. This trade represents a 53.69% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, EVP Michele Lau sold 2,725 shares of the stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $990.00, for a total value of $2,697,750.00. Following the completion of the sale, the executive vice president owned 3,247 shares of the company's stock, valued at approximately $3,214,530. This trade represents a 45.63% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 3,264 shares of company stock worth $3,205,315. 0.08% of the stock is currently owned by company insiders.

McKesson Price Performance

Shares of MCK stock opened at $747.52 on Friday. The stock has a market capitalization of $89.85 billion, a PE ratio of 19.43, a P/E/G ratio of 1.10 and a beta of 0.35. McKesson Corporation has a 1-year low of $637.00 and a 1-year high of $999.00. The business has a 50-day moving average of $859.18 and a 200 day moving average of $857.90.

McKesson (NYSE:MCK - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $11.69 earnings per share for the quarter, beating the consensus estimate of $11.56 by $0.13. The company had revenue of $96.30 billion during the quarter, compared to analysts' expectations of $101.35 billion. McKesson had a negative return on equity of 345.35% and a net margin of 1.18%.McKesson's quarterly revenue was up 6.0% compared to the same quarter last year. During the same period in the prior year, the business posted $10.12 EPS. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. Analysts anticipate that McKesson Corporation will post 44.29 EPS for the current year.

McKesson Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Monday, June 1st will be issued a dividend of $0.82 per share. The ex-dividend date is Monday, June 1st. This represents a $3.28 annualized dividend and a yield of 0.4%. McKesson's dividend payout ratio is currently 8.53%.

Key Stories Impacting McKesson

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson’s Q1 results showed non-GAAP EPS of $11.69, topping estimates, while revenue still rose 6% year over year to $96.3 billion. Management also said margin initiatives are continuing, which supports the long-term earnings story. MCK Q1 Deep Dive: Revenue Misses Analyst Expectations as Margin Initiatives Continue
• Positive Sentiment: Citigroup kept a Buy rating on McKesson and only slightly lowered its price target to $945 from $975, which still implies meaningful upside from recent trading levels. Benzinga
• Positive Sentiment: McKesson Ventures helped lead a $26 million Series A round for BranchLab, a move that highlights the company’s continued investment in AI-enabled pharma commercialization and adjacent growth opportunities. BranchLab Raises $26M Series A Led by McKesson Ventures to Bring AI to Pharma Commercialization
• Neutral Sentiment: McKesson is seeing elevated investor attention on Zacks, but the coverage appears to be mostly a reminder for investors to review the company’s fundamentals rather than a clear new catalyst. McKesson Corporation (MCK) is Attracting Investor Attention: Here is What You Should Know
• Neutral Sentiment: Another article highlighted analyst questions from McKesson’s Q1 earnings call, but it did not indicate a major new development by itself. 5 insightful analyst questions from McKesson’s Q1 earnings call
• Negative Sentiment: McKesson’s revenue came in below analyst expectations in Q1, which may be a reason the stock has been trading lower despite solid earnings growth. MCK Q1 Deep Dive: Revenue Misses Analyst Expectations as Margin Initiatives Continue

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on MCK. Evercore reiterated an "outperform" rating on shares of McKesson in a research report on Thursday, March 5th. Weiss Ratings reiterated a "buy (b+)" rating on shares of McKesson in a research report on Monday, May 4th. JPMorgan Chase & Co. reduced their price objective on McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. UBS Group increased their price objective on McKesson from $1,000.00 to $1,050.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Finally, William Blair initiated coverage on McKesson in a report on Tuesday, April 28th. They set an "outperform" rating for the company. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $968.87.

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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