Denali Advisors LLC Acquires Shares of 1,701 McKesson Corporation $MCK

Key Points

• Denali Advisors initiated a McKesson position by purchasing 1,701 shares valued at approximately $1.285 million. Institutional investors own 85.07% of McKesson’s outstanding stock.
• McKesson reported quarterly EPS of $9.93, beating estimates by $0.37, while revenue rose 7.7% year over year to $105.38 billion. The company guided to fiscal 2027 EPS of $44.20–$45.00.
• McKesson increased its quarterly dividend from $0.82 to $0.94 per share, although insiders have sold 29,049 shares worth about $22.5 million over the past three months. Analysts maintain a “Moderate Buy” consensus with an average price target of $973.44.

Denali Advisors LLC bought a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) during the second quarter, according to its most recent filing with the SEC. The fund bought 1,701 shares of the company's stock, valued at approximately $1,285,000.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. NewEdge Wealth LLC bought a new position in McKesson during the second quarter valued at about $865,000. Empirical Asset Management LLC bought a new stake in McKesson in the second quarter worth about $754,000. Great Lakes Advisors LLC bought a new stake in McKesson in the second quarter worth about $30,747,000. BOK Financial Private Wealth Inc. purchased a new position in McKesson in the second quarter valued at about $161,000. Finally, Act Two Investors LLC purchased a new position in McKesson in the second quarter valued at about $6,740,000. 85.07% of the stock is owned by hedge funds and other institutional investors.

McKesson Stock Down 1.8%

MCK opened at $853.53 on Thursday. The company has a market capitalization of $99.51 billion, a price-to-earnings ratio of 22.84, a PEG ratio of 1.71 and a beta of 0.30. The firm has a 50-day moving average price of $818.34 and a 200-day moving average price of $843.66. McKesson Corporation has a twelve month low of $673.38 and a twelve month high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $9.56 by $0.37. The company had revenue of $105.38 billion for the quarter, compared to analyst estimates of $103.88 billion. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The company's quarterly revenue was up 7.7% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $8.26 earnings per share. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. On average, sell-side analysts expect that McKesson Corporation will post 44.65 earnings per share for the current fiscal year.

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be issued a dividend of $0.94 per share. This represents a $3.76 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend is Tuesday, September 1st. This is a positive change from McKesson's previous quarterly dividend of $0.82. McKesson's payout ratio is presently 8.78%.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on MCK shares. Barclays raised their price target on shares of McKesson from $925.00 to $1,000.00 and gave the stock an "overweight" rating in a research note on Wednesday. Wall Street Zen downgraded McKesson from a "buy" rating to a "hold" rating in a research note on Saturday, June 27th. Citigroup increased their price objective on McKesson from $945.00 to $1,000.00 and gave the company a "buy" rating in a report on Friday, July 24th. Wells Fargo & Company raised their target price on McKesson from $812.00 to $933.00 and gave the stock an "equal weight" rating in a research report on Tuesday, August 11th. Finally, Weiss Ratings lowered McKesson from a "buy (b)" rating to a "buy (b-)" rating in a research note on Tuesday, July 7th. Fourteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus target price of $973.44.

Insider Buying and Selling at McKesson

In other McKesson news, EVP Michele Lau sold 3,550 shares of the stock in a transaction on 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 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 transaction was disclosed in a legal filing with the SEC, which is available at 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 firm's stock in a transaction 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 transaction, the chief accounting officer directly owned 632 shares of the company's stock, valued at $482,848. The trade was a 17.39% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 29,049 shares of company stock worth $22,530,626. Company insiders own 0.06% 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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