CIBC Asset Management Inc Raises Stock Holdings in McKesson Corporation $MCK

Key Points

• CIBC Asset Management Inc. increased its McKesson stake by 25.6% in the fourth quarter, buying 16,390 additional shares and bringing its total to 80,534 shares worth about $66 million.
• McKesson reported strong quarterly earnings, posting $11.69 EPS and beating analyst estimates, though revenue of $96.3 billion came in below expectations.
• Wall Street remains broadly positive on the stock, with 14 Buy ratings and a consensus Moderate Buy rating; the average target price is about $968.87 versus the recent trading price of $735.76.

CIBC Asset Management Inc grew its stake in McKesson Corporation (NYSE:MCK - Free Report) by 25.6% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 80,534 shares of the company's stock after buying an additional 16,390 shares during the quarter. CIBC Asset Management Inc owned approximately 0.07% of McKesson worth $65,976,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also bought and sold shares of the company. Norges Bank purchased a new stake in shares of McKesson in the fourth quarter worth $1,651,137,000. Swedbank AB increased its stake in shares of McKesson by 42.2% in the fourth quarter. Swedbank AB now owns 886,283 shares of the company's stock worth $727,009,000 after purchasing an additional 263,189 shares in the last quarter. SurgoCap Partners LP increased its stake in shares of McKesson by 68.7% in the third quarter. SurgoCap Partners LP now owns 452,261 shares of the company's stock worth $349,390,000 after purchasing an additional 184,106 shares in the last quarter. Robeco Institutional Asset Management B.V. increased its stake in shares of McKesson by 73.7% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 432,578 shares of the company's stock worth $354,839,000 after purchasing an additional 183,590 shares in the last quarter. Finally, Danica Pension Livsforsikringsaktieselskab purchased a new stake in shares of McKesson in the third quarter worth $135,352,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

McKesson Price Performance

NYSE MCK opened at $735.76 on Wednesday. McKesson Corporation has a 1-year low of $637.00 and a 1-year high of $999.00. The business has a 50 day simple moving average of $816.69 and a two-hundred day simple moving average of $851.56. The stock has a market capitalization of $88.44 billion, a PE ratio of 19.13, a P/E/G ratio of 1.10 and a beta of 0.31.

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

McKesson Dividend Announcement

The company also recently disclosed 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 of this dividend is Monday, June 1st. This represents a $3.28 dividend on an annualized basis and a yield of 0.4%. McKesson's payout ratio is presently 8.53%.

Wall Street Analysts Forecast Growth

MCK has been the subject of a number of analyst reports. Mizuho increased their price objective on shares of McKesson from $880.00 to $885.00 and gave the stock a "neutral" rating in a research note on Thursday, February 5th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $875.00 target price on shares of McKesson in a research report on Friday, May 8th. William Blair initiated coverage on McKesson in a research report on Tuesday, April 28th. They set an "outperform" rating for the company. Evercore reiterated an "outperform" rating on shares of McKesson in a research report on Thursday, March 5th. Finally, Wall Street Zen raised shares of McKesson from a "hold" rating to a "buy" rating in a research note on Saturday, May 2nd. Fourteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, McKesson has a consensus rating of "Moderate Buy" and an average target price of $968.87.

Insider Buying and Selling

In other news, EVP Thomas L. Rodgers sold 2,388 shares of the company's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $761.09, for a total transaction of $1,817,482.92. Following the sale, the executive vice president directly owned 3,090 shares in the company, valued at approximately $2,351,768.10. This represents a 43.59% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Michele Lau sold 3,550 shares of the company's stock in a transaction dated 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 sale, the executive vice president owned 3,247 shares in the company, valued at $2,471,259.23. This represents 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. Insiders own 0.08% of the company's stock.

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.

Want to see what other hedge funds are holding MCK? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for McKesson Corporation (NYSE:MCK - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.