Clifford Swan Investment Counsel LLC Lowers Stock Holdings in McKesson Corporation $MCK

Key Points

• Clifford Swan Investment Counsel LLC cut its McKesson stake by 5.4% in the first quarter, selling 2,111 shares and ending with 36,643 shares worth about $31.7 million.
• Insiders have been selling shares as well, including EVP Michele Lau and CAO Napoleon B. Rutledge Jr.; company insiders sold 28,748 shares worth about $22.3 million over the last 90 days.
• Analysts remain broadly positive on McKesson, with 14 Buy ratings and 3 Hold ratings and an average target price of $960.53, while the stock recently traded at $842.14.

Clifford Swan Investment Counsel LLC reduced its position in McKesson Corporation (NYSE:MCK - Free Report) by 5.4% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 36,643 shares of the company's stock after selling 2,111 shares during the quarter. McKesson comprises about 1.1% of Clifford Swan Investment Counsel LLC's holdings, making the stock its 26th biggest holding. Clifford Swan Investment Counsel LLC's holdings in McKesson were worth $31,710,000 at the end of the most recent reporting period.

Other hedge funds also recently bought and sold shares of the company. University of Texas Texas AM Investment Management Co. purchased a new stake in McKesson in the 4th quarter worth approximately $25,000. Swiss RE Ltd. purchased a new position in shares of McKesson during the 4th quarter valued at $26,000. State of Wyoming bought a new position in shares of McKesson in the second quarter worth $29,000. Board of the Pension Protection Fund bought a new position in shares of McKesson in the fourth quarter worth $33,000. Finally, Kingdom Financial Group LLC. purchased a new stake in shares of McKesson in the fourth quarter worth $33,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

Insider Transactions at McKesson

In related news, EVP Michele Lau sold 3,550 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $761.09, for a total transaction of $2,701,869.50. Following the transaction, the executive vice president directly owned 3,247 shares of the company's stock, valued at approximately $2,471,259.23. This trade represents a 52.23% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the business's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $764.00, for a total value of $101,612.00. Following the completion of the sale, the chief accounting officer owned 632 shares of the company's stock, valued at $482,848. The trade was a 17.39% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 28,748 shares of company stock valued at $22,262,035 over the last 90 days. Company insiders own 0.06% of the company's stock.

Analysts Set New Price Targets

Several research firms recently issued reports on MCK. Weiss Ratings lowered McKesson from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, July 7th. Citigroup decreased their target price on McKesson from $975.00 to $945.00 and set a "buy" rating on the stock in a research note on Thursday, May 14th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $875.00 price target on shares of McKesson in a report on Friday, May 8th. Barclays dropped their price target 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. Finally, Wall Street Zen cut shares of McKesson from a "buy" rating to a "hold" rating in a research report on Saturday, June 27th. Fourteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, McKesson has an average rating of "Moderate Buy" and an average target price of $960.53.

McKesson Stock Performance

NYSE MCK opened at $842.14 on Friday. McKesson Corporation has a 52-week low of $637.00 and a 52-week high of $999.00. The company has a fifty day moving average of $771.33 and a 200-day moving average of $838.33. The company has a market capitalization of $98.60 billion, a P/E ratio of 21.89, a P/E/G ratio of 1.38 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 EPS for the quarter, beating 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 analysts' expectations of $101.35 billion. During the same quarter in the prior year, the firm earned $10.12 earnings per share. The firm's revenue was up 6.0% on a year-over-year basis. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. As a group, analysts forecast that McKesson Corporation will post 44.28 EPS for the current fiscal year.

McKesson Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st were given a dividend of $0.82 per share. The ex-dividend date was Monday, June 1st. This represents a $3.28 annualized dividend and a dividend yield of 0.4%. McKesson's dividend payout ratio is 8.53%.

About McKesson

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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