Deutsche Bank AG Buys New Stake in McKesson Corporation $MCK

Key Points

• Deutsche Bank acquired 446,421 McKesson shares worth approximately $337.3 million in the second quarter, representing about 0.38% of the company. Institutional investors collectively own 85.07% of McKesson.
• McKesson reported quarterly earnings of $9.93 per share, exceeding estimates of $9.56, while revenue rose 7.7% year over year to $105.38 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $977.
• The company raised its quarterly dividend to $0.94 per share from $0.82, equal to an annualized dividend of $3.76 and a 0.4% yield. Meanwhile, insiders sold $22.5 million of stock over the past 90 days.

Deutsche Bank AG bought a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor bought 446,421 shares of the company's stock, valued at approximately $337,316,000. Deutsche Bank AG owned approximately 0.38% of McKesson as of its most recent SEC filing.

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

Analyst Ratings Changes

MCK has been the subject of a number of research analyst reports. Barclays lowered their price target on McKesson from $1,050.00 to $925.00 and set an "overweight" rating for the company in a report on Wednesday, June 10th. William Blair initiated coverage on McKesson in a research report on Tuesday, April 28th. They set an "outperform" rating on the stock. Wall Street Zen cut shares of McKesson from a "buy" rating to a "hold" rating in a report on Saturday, June 27th. JPMorgan Chase & Co. cut their price target on McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating on the stock in a research note on Friday, May 8th. Finally, TD Cowen boosted their price objective on shares of McKesson from $989.00 to $1,006.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Fourteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $977.00.

Insider Activity

In other McKesson news, EVP Thomas L. Rodgers sold 2,388 shares of the business's stock in a transaction on Tuesday, May 26th. The stock was 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. The trade was a 43.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 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, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the business's stock in a transaction dated Friday, June 5th. The stock was sold at an average price of $764.00, for a total transaction of $101,612.00. Following the completion of the sale, the chief accounting officer owned 632 shares in the company, valued at $482,848. This represents 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. Insiders sold a total of 29,049 shares of company stock valued at $22,530,626 in the last 90 days. Insiders own 0.06% of the company's stock.

McKesson Stock Down 0.9%

NYSE MCK opened at $861.59 on Tuesday. The stock has a market capitalization of $100.45 billion, a P/E ratio of 23.06, a P/E/G ratio of 1.71 and a beta of 0.30. The firm has a 50-day moving average price of $815.34 and a 200 day moving average price of $843.12. McKesson Corporation has a 52-week low of $667.50 and a 52-week 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 for the quarter, beating analysts' consensus estimates 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 the consensus estimate of $103.88 billion. During the same period in the previous year, the business earned $8.26 earnings per share. The company's revenue for the quarter was up 7.7% compared to the same quarter last year. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. On average, equities research analysts expect that McKesson Corporation will post 44.65 earnings per share for the current fiscal year.

McKesson Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be given a dividend of $0.94 per share. This represents a $3.76 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date is Tuesday, September 1st. This is a positive change from McKesson's previous quarterly dividend of $0.82. McKesson's payout ratio is 10.06%.

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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