Costello Asset Management INC Boosts Stock Position in McKesson Corporation $MCK

Key Points

• Costello Asset Management sharply increased its McKesson stake by 4,286.7% in the fourth quarter, buying 5,144 additional shares and ending with 5,264 shares valued at about $4.3 million.
• McKesson beat fiscal Q4 adjusted EPS estimates at $11.69, but revenue missed expectations at $96.3 billion versus $101.35 billion, which has weighed on the stock.
• The company issued FY 2027 EPS guidance of $43.80-$44.60 and reaffirmed long-term targets, while analysts mostly remain positive with a consensus rating of Moderate Buy.

Costello Asset Management INC grew its position in shares of McKesson Corporation (NYSE:MCK - Free Report) by 4,286.7% during the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 5,264 shares of the company's stock after purchasing an additional 5,144 shares during the quarter. McKesson makes up about 1.4% of Costello Asset Management INC's investment portfolio, making the stock its 17th largest position. Costello Asset Management INC's holdings in McKesson were worth $4,318,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. Obsidian Personal Planning Solutions LLC raised its stake in shares of McKesson by 2.9% during the third quarter. Obsidian Personal Planning Solutions LLC now owns 426 shares of the company's stock worth $346,000 after acquiring an additional 12 shares in the last quarter. Berkshire Asset Management LLC PA lifted its holdings in shares of McKesson by 4.6% in the 3rd quarter. Berkshire Asset Management LLC PA now owns 294 shares of the company's stock worth $227,000 after acquiring an additional 13 shares during the last quarter. Norden Group LLC boosted its stake in shares of McKesson by 4.3% in the 4th quarter. Norden Group LLC now owns 317 shares of the company's stock valued at $260,000 after purchasing an additional 13 shares in the last quarter. Wealthcare Advisory Partners LLC boosted its stake in shares of McKesson by 0.7% in the 4th quarter. Wealthcare Advisory Partners LLC now owns 1,873 shares of the company's stock valued at $1,536,000 after purchasing an additional 13 shares in the last quarter. Finally, Red Door Wealth Management LLC grew its holdings in shares of McKesson by 3.8% during the 4th quarter. Red Door Wealth Management LLC now owns 358 shares of the company's stock valued at $293,000 after purchasing an additional 13 shares during the last quarter. 85.07% of the stock is owned by hedge funds and other institutional investors.

McKesson News Summary

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson beat quarterly adjusted EPS estimates, reporting $11.69 per share versus $11.56 expected, and cited strength in oncology, specialty distribution, and biopharma services. Reuters article
• Positive Sentiment: The company guided fiscal 2027 EPS to $43.80-$44.60, which is roughly in line with expectations and suggests continued earnings growth. McKesson also reaffirmed its long-term financial targets. Yahoo Finance article
• Positive Sentiment: JPMorgan lowered its price target to $1,015 from $1,107 but kept an overweight rating, implying meaningful upside from the current share price. Benzinga article
• Positive Sentiment: William Blair reiterated a Buy rating, saying McKesson’s durable earnings power and fiscal 2027 growth outlook outweigh near-term revenue softness. TipRanks article
• Neutral Sentiment: McKesson advanced plans for its $13 billion medical-surgical spinoff/separation, a strategic move that could unlock value over time but also adds execution risk. MSN article
• Negative Sentiment: Revenue came in below Wall Street forecasts at $96.3 billion versus $101.35 billion expected, reinforcing concerns about softer sales momentum despite improved margins. Yahoo Finance article
• Negative Sentiment: The stock has been trading lower as investors focus on the revenue shortfall and near-term softness in the medical-surgical business, even with strong earnings and guidance. Zacks article

McKesson Stock Down 2.6%

Shares of MCK stock opened at $734.93 on Friday. The firm has a market capitalization of $90.02 billion, a price-to-earnings ratio of 19.10, a PEG ratio of 1.09 and a beta of 0.35. The stock has a fifty day moving average of $883.74 and a 200 day moving average of $859.93. McKesson Corporation has a 52 week low of $637.00 and a 52 week high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The company reported $11.69 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $11.56 by $0.13. McKesson had a net margin of 1.18% and a negative return on equity of 378.75%. The business had revenue of $96.30 billion for the quarter, compared to the consensus estimate of $101.35 billion. During the same period in the previous year, the firm earned $10.12 EPS. The company's quarterly 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. Equities research analysts anticipate that McKesson Corporation will post 44.24 earnings per share for the current year.

McKesson Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Investors of record on Monday, June 1st will be paid a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend is Monday, June 1st. McKesson's dividend payout ratio is presently 8.53%.

Analyst Ratings Changes

MCK has been the topic of a number of analyst reports. Weiss Ratings reiterated a "buy (b+)" rating on shares of McKesson in a research report on Monday. Bank of America reduced their price objective on McKesson from $1,040.00 to $1,000.00 and set a "buy" rating on the stock in a research note on Monday, April 6th. Raymond James Financial set a $970.00 price objective on McKesson in a report on Thursday, March 5th. TD Cowen boosted their target price on McKesson from $1,000.00 to $1,012.00 and gave the company a "buy" rating in a research note on Thursday, February 5th. Finally, Morgan Stanley restated an "overweight" rating and set a $966.00 target price on shares of McKesson in a report on Thursday, January 29th. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $970.73.

Insiders Place Their Bets

In other McKesson news, Director Maria Martinez sold 349 shares of the firm's stock in a transaction dated Thursday, February 19th. The shares were sold at an average price of $939.87, for a total value of $328,014.63. Following the completion of the sale, the director directly owned 301 shares in the company, valued at $282,900.87. This trade represents a 53.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Michele Lau sold 2,725 shares of McKesson stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $990.00, for a total value of $2,697,750.00. Following the sale, the executive vice president directly owned 3,247 shares in the company, valued at approximately $3,214,530. The trade was a 45.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 3,264 shares of company stock worth $3,205,315 over the last three months. Company insiders own 0.08% of the company's stock.

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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