BI Asset Management Fondsmaeglerselskab A S Reduces Stake in McKesson Corporation $MCK

Key Points

• BI Asset Management Fondsmaeglerselskab A S cut its McKesson stake by 42.9% in the first quarter, selling 7,921 shares and leaving it with 10,556 shares valued at about $9.1 million.
• McKesson reported better-than-expected fiscal Q4 earnings of $11.69 per share on May 7, though revenue came in below estimates at $96.3 billion. The company also raised its outlook, setting FY2027 guidance at $43.80 to $44.60 EPS.
• There has been notable insider selling recently, including CEO Brian Tyler and EVP Thomas L. Rodgers, with insiders selling about $15.5 million of stock over the last 90 days. Despite that, analysts remain largely constructive, with McKesson carrying an overall Moderate Buy rating.

BI Asset Management Fondsmaeglerselskab A S reduced its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 42.9% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 10,556 shares of the company's stock after selling 7,921 shares during the quarter. BI Asset Management Fondsmaeglerselskab A S's holdings in McKesson were worth $9,135,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. University of Texas Texas AM Investment Management Co. bought a new stake in shares of McKesson in the 4th quarter valued at approximately $25,000. Swiss RE Ltd. bought a new position in shares of McKesson during the 4th quarter valued at approximately $26,000. GGM Financials LLC bought a new position in shares of McKesson during the 3rd quarter valued at approximately $25,000. State of Wyoming purchased a new stake in McKesson during the 2nd quarter valued at $29,000. Finally, Board of the Pension Protection Fund purchased a new stake in McKesson during the 4th quarter valued at $33,000. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

McKesson News Summary

Here are the key news stories impacting McKesson this week:

• Negative Sentiment: CEO Brian Tyler sold 8,463 shares at an average price of $775.13 under a pre-arranged 10b5-1 plan. Even though the sale was planned, insider selling can still weigh on investor sentiment. Article Title
• Neutral Sentiment: McKesson continues to get attention for its Medical-Surgical Solutions carve-out and new financing tied to that unit, which investors may be reassessing after a strong earnings report and upbeat FY2027 guidance. Article Title
• Neutral Sentiment: The company recently announced a fiscal 2024 fourth-quarter earnings release date, a routine event that does not appear to be a major market driver on its own. Article Title

Analyst Ratings Changes

Several research firms have commented on MCK. Evercore reaffirmed an "outperform" rating on shares of McKesson in a research note on Thursday, March 5th. Barclays reduced their target price on shares of McKesson from $1,050.00 to $925.00 and set an "overweight" rating on the stock in a research note on Wednesday, June 10th. Weiss Ratings lowered shares of McKesson from a "buy (b+)" rating to a "buy (b)" rating in a report on Monday, May 18th. Citigroup dropped their price target on shares of McKesson from $975.00 to $945.00 and set a "buy" rating for the company in a research note on Thursday, May 14th. Finally, William Blair started coverage on shares of McKesson in a report on Tuesday, April 28th. They set an "outperform" rating on the stock. Fourteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, McKesson has an average rating of "Moderate Buy" and an average price target of $960.53.

Insider Activity at McKesson

In other news, EVP Thomas L. Rodgers sold 699 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $735.27, for a total transaction of $513,953.73. Following the transaction, the executive vice president directly owned 2,268 shares of the company's stock, valued at approximately $1,667,592.36. This trade represents a 23.56% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brian S. Tyler sold 8,463 shares of the firm's stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $775.13, for a total transaction of $6,559,925.19. Following the transaction, the chief executive officer directly owned 14,382 shares in the company, valued at approximately $11,147,919.66. This trade represents a 37.05% 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. Over the last 90 days, insiders have sold 20,285 shares of company stock worth $15,546,137. Corporate insiders own 0.06% of the company's stock.

McKesson Stock Down 0.1%

Shares of McKesson stock opened at $750.23 on Monday. The stock's fifty day moving average is $787.94 and its two-hundred day moving average is $842.32. McKesson Corporation has a 52 week low of $637.00 and a 52 week high of $999.00. The company has a market capitalization of $87.84 billion, a PE ratio of 19.50, a price-to-earnings-growth ratio of 1.24 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 for the quarter, topping the consensus estimate of $11.56 by $0.13. The business had revenue of $96.30 billion during the quarter, compared to the consensus estimate of $101.35 billion. McKesson had a negative return on equity of 345.35% and a net margin of 1.18%.The business's revenue for the quarter was up 6.0% compared to the same quarter last year. During the same period last year, the company earned $10.12 earnings per share. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. As a group, research analysts anticipate that McKesson Corporation will post 44.28 earnings per share for the current year.

McKesson Announces Dividend

The business also recently disclosed 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 dividend on an annualized basis and a yield of 0.4%. McKesson's dividend payout ratio (DPR) is presently 8.53%.

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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