Brandes Investment Partners LP Raises Stock Holdings in McKesson Corporation $MCK

Key Points

• Brandes Investment Partners increased its McKesson stake by 2.1% in the fourth quarter, bringing its holdings to 188,365 shares worth about $154.5 million.
• McKesson reported earnings above expectations for the latest quarter, posting $11.69 per share versus $11.56 estimated, while revenue rose 6% year over year to $96.3 billion.
• The company declared a quarterly dividend of $0.82 per share, payable July 1, and analysts currently maintain a consensus Moderate Buy rating with a $968.87 target price.

Brandes Investment Partners LP increased its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 2.1% during the 4th quarter, according to the company in its most recent filing with the SEC. The fund owned 188,365 shares of the company's stock after purchasing an additional 3,924 shares during the quarter. Brandes Investment Partners LP owned 0.15% of McKesson worth $154,524,000 at the end of the most recent quarter.

Several other large investors have also recently modified their holdings of MCK. Cullen Investment Group LTD. grew its position in McKesson by 550.4% in the 4th quarter. Cullen Investment Group LTD. now owns 4,670 shares of the company's stock valued at $3,811,000 after acquiring an additional 3,952 shares during the last quarter. Pensionfund Sabic bought a new position in McKesson in the 4th quarter valued at $1,887,000. Varma Mutual Pension Insurance Co grew its position in shares of McKesson by 28.9% during the 3rd quarter. Varma Mutual Pension Insurance Co now owns 21,853 shares of the company's stock worth $16,882,000 after buying an additional 4,900 shares in the last quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management grew its position in shares of McKesson by 18.8% during the 3rd quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 10,009 shares of the company's stock worth $7,732,000 after buying an additional 1,585 shares in the last quarter. Finally, PNC Financial Services Group Inc. grew its position in shares of McKesson by 24.3% during the 3rd quarter. PNC Financial Services Group Inc. now owns 242,256 shares of the company's stock worth $187,152,000 after buying an additional 47,352 shares in the last quarter. Institutional investors own 85.07% of the company's stock.

McKesson Price Performance

Shares of NYSE MCK opened at $783.71 on Wednesday. The stock has a market capitalization of $94.20 billion, a P/E ratio of 20.37, a price-to-earnings-growth ratio of 1.26 and a beta of 0.31. McKesson Corporation has a 1-year low of $637.00 and a 1-year high of $999.00. The business has a fifty day moving average price of $802.84 and a 200 day moving average price of $847.76.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $11.69 earnings per share for the quarter, topping analysts' consensus estimates of $11.56 by $0.13. The firm 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%.The firm's quarterly revenue was up 6.0% on a year-over-year basis. 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. As a group, equities research analysts anticipate that McKesson Corporation will post 44.28 earnings per share for the current fiscal year.

McKesson Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st will be paid a $0.82 dividend. 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 8.53%.

Insider Buying and Selling at McKesson

In other McKesson news, EVP Michele Lau sold 3,550 shares of the stock in a transaction dated Tuesday, May 26th. The stock was 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 in the company, valued at approximately $2,471,259.23. This trade represents a 52.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thomas L. Rodgers sold 699 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were sold at an average price of $735.27, for a total value of $513,953.73. Following the completion of the sale, the executive vice president 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 6,893 shares of company stock worth $5,225,385. 0.08% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the company. William Blair assumed coverage on McKesson in a research report on Tuesday, April 28th. They set an "outperform" rating on the stock. Citigroup dropped their price target on McKesson from $975.00 to $945.00 and set a "buy" rating on the stock in a research report on Thursday, May 14th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating and set a $875.00 price target on shares of McKesson in a research report on Friday, May 8th. Weiss Ratings downgraded McKesson from a "buy (b+)" rating to a "buy (b)" rating in a research report on Monday, May 18th. Finally, Wells Fargo & Company dropped their price target on McKesson from $925.00 to $812.00 and set an "equal weight" rating on the stock in a research report on Tuesday, May 12th. Fourteen research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, McKesson presently has a consensus rating of "Moderate Buy" and a consensus target price of $968.87.

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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