BlackRock Inc. Acquires New Stake in McKesson Corporation $MCK

Key Points

• BlackRock acquired 10.8 million McKesson shares worth approximately $8.16 billion, giving it a 9.22% stake. Institutional investors collectively own 85.07% of the company.
• McKesson exceeded quarterly expectations with adjusted EPS of $9.93 and revenue of $105.38 billion, while revenue increased 7.7% year over year. The company issued fiscal 2027 EPS guidance of $44.20–$45.00.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $977, and McKesson raised its quarterly dividend to $0.94 from $0.82.

BlackRock Inc. bought a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor bought 10,795,054 shares of the company's stock, valued at approximately $8,156,743,000. BlackRock Inc. owned approximately 9.22% of McKesson at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. Norges Bank acquired a new position in shares of McKesson in the fourth quarter worth $1,651,137,000. Bank of New York Mellon Corp purchased a new stake in shares of McKesson during the second quarter worth $599,060,000. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of McKesson in the second quarter valued at $495,737,000. Deutsche Bank AG acquired a new stake in shares of McKesson in the second quarter valued at $337,316,000. Finally, Swedbank AB boosted its holdings in McKesson by 42.2% in the fourth quarter. Swedbank AB now owns 886,283 shares of the company's stock valued at $727,009,000 after purchasing an additional 263,189 shares during the period. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

Several research firms recently commented on MCK. JPMorgan Chase & Co. lowered their target price on McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Citigroup increased their price target on McKesson from $945.00 to $1,000.00 and gave the company a "buy" rating in a research report on Friday, July 24th. Barclays lowered their price objective on McKesson from $1,050.00 to $925.00 and set an "overweight" rating for the company in a research report on Wednesday, June 10th. Evercore restated an "outperform" rating on shares of McKesson in a research note on Thursday, August 6th. Finally, Wells Fargo & Company raised their target price on shares of McKesson from $812.00 to $933.00 and gave the company an "equal weight" rating in a report on Tuesday, August 11th. Fourteen research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $977.00.

McKesson Stock Down 0.9%

MCK stock opened at $861.59 on Tuesday. The business has a 50 day moving average price of $815.34 and a 200 day moving average price of $843.12. The stock has a market cap of $100.45 billion, a price-to-earnings ratio of 23.06, a PEG ratio of 1.71 and a beta of 0.30. McKesson Corporation has a fifty-two week low of $667.50 and a fifty-two week high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $9.56 by $0.37. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%.The firm had revenue of $105.38 billion during the quarter, compared to the consensus estimate of $103.88 billion. During the same period in the prior year, the company posted $8.26 earnings per share. The firm's quarterly revenue was up 7.7% compared to the same quarter last year. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, sell-side analysts anticipate that McKesson Corporation will post 44.65 EPS for the current 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 given a $0.94 dividend. This is a positive change from McKesson's previous quarterly dividend of $0.82. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $3.76 dividend on an annualized basis and a dividend yield of 0.4%. McKesson's payout ratio is 10.06%.

Insider Activity

In related news, EVP Michele Lau sold 3,550 shares of the business's stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $761.09, for a total value of $2,701,869.50. Following the completion of the sale, the executive vice president directly owned 3,247 shares of the company's stock, valued at $2,471,259.23. The trade was a 52.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thomas L. Rodgers sold 699 shares of the company's stock in a transaction 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 completion of the transaction, the executive vice president owned 2,268 shares of the company's stock, valued at $1,667,592.36. This represents a 23.56% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 29,049 shares of company stock worth $22,530,626 over the last three months. Company insiders own 0.06% of the company's stock.

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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