Commerce Bank Purchases New Stake in McKesson Corporation $MCK

Key Points

• Commerce Bank acquired 137,489 McKesson shares in the second quarter, worth approximately $103.9 million and representing about 0.12% of the company. Institutional investors collectively own 85.07% of McKesson.
• McKesson reported quarterly earnings of $9.93 per share, beating estimates by $0.37, while revenue rose 7.7% year over year to $105.38 billion. The company also raised its quarterly dividend to $0.94 per share from $0.82.
• Analysts maintain a broadly positive view, with a consensus “Moderate Buy” rating and an average price target of $973.44. However, insiders sold approximately $22.5 million of stock over the past 90 days.

Commerce Bank acquired a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 137,489 shares of the company's stock, valued at approximately $103,887,000. Commerce Bank owned about 0.12% of McKesson as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also added to or reduced their stakes in MCK. University of Texas Texas AM Investment Management Co. bought a new stake in shares of McKesson in the fourth quarter valued at $25,000. Swiss RE Ltd. bought a new position in shares of McKesson during the 4th quarter worth $26,000. State of Wyoming bought a new position in shares of McKesson during the 2nd quarter worth $29,000. Kingdom Financial Group LLC. purchased a new stake in McKesson in the 4th quarter worth about $33,000. Finally, Birchwood Financial Partners Inc. purchased a new stake in McKesson in the 4th quarter worth about $33,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

Insiders Place Their Bets

In other news, 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 value of $513,953.73. Following the transaction, the executive vice president owned 2,268 shares of the company's stock, valued at approximately $1,667,592.36. This represents a 23.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed 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, Director Bradley E. Lerman sold 301 shares of the company's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $892.33, for a total transaction of $268,591.33. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 29,049 shares of company stock worth $22,530,626. Company insiders own 0.06% of the company's stock.

McKesson Stock Up 2.8%

Shares of NYSE MCK opened at $862.27 on Friday. The company has a market cap of $100.53 billion, a P/E ratio of 23.07, a P/E/G ratio of 1.69 and a beta of 0.30. McKesson Corporation has a 52 week low of $673.38 and a 52 week high of $999.00. The business has a 50-day simple moving average of $820.97 and a two-hundred day simple moving average of $843.86.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to analysts' expectations of $103.88 billion. During the same period in the prior year, the business posted $8.26 earnings per share. The company's revenue was up 7.7% on a year-over-year basis. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. Equities research analysts anticipate that McKesson Corporation will post 44.65 EPS for the current year.

McKesson Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be issued a dividend of $0.94 per share. This is a boost 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 yield of 0.4%. McKesson's payout ratio is currently 8.78%.

Analyst Upgrades and Downgrades

MCK has been the topic of several recent research reports. Barclays upped their price objective on shares of McKesson from $925.00 to $1,000.00 and gave the company an "overweight" rating in a report on Wednesday. JPMorgan Chase & Co. lowered their price target on shares of McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. UBS Group upped their price target on shares of McKesson from $1,050.00 to $1,080.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Wells Fargo & Company raised their price objective on shares of McKesson from $812.00 to $933.00 and gave the stock an "equal weight" rating in a report on Tuesday, August 11th. Finally, Royal Bank Of Canada assumed coverage on shares of McKesson in a research note on Wednesday. They issued a "sector perform" rating and a $845.00 price objective for the company. Fourteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $973.44.

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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