Dividend Assets Capital LLC Invests $3.55 Million in McKesson Corporation $MCK

Key Points

• Dividend Assets Capital LLC opened a new position in McKesson during the first quarter, buying 4,102 shares valued at about $3.55 million.
• McKesson posted better-than-expected earnings of $11.69 per share for the quarter, though revenue of $96.3 billion came in below analyst forecasts. The company also reaffirmed FY 2027 guidance of 43.8 to 44.6 EPS.
• The company paid a quarterly dividend of $0.82 per share, equal to an annualized dividend of $3.28 and a yield of about 0.4%. Analysts remain broadly positive, with an average rating of Moderate Buy and an average price target of $960.53.

Dividend Assets Capital LLC purchased a new stake in shares of McKesson Corporation (NYSE:MCK - Free Report) during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 4,102 shares of the company's stock, valued at approximately $3,550,000.

Several other hedge funds have also added to or reduced their stakes in MCK. Brighton Jones LLC grew its position in shares of McKesson by 46.3% during the 4th quarter. Brighton Jones LLC now owns 2,523 shares of the company's stock worth $1,438,000 after buying an additional 798 shares during the period. Caxton Associates LLP bought a new stake in shares of McKesson during the first quarter worth approximately $233,000. Sivia Capital Partners LLC lifted its holdings in McKesson by 77.9% in the second quarter. Sivia Capital Partners LLC now owns 685 shares of the company's stock valued at $502,000 after buying an additional 300 shares during the period. Treasurer of the State of North Carolina lifted its holdings in McKesson by 0.9% in the second quarter. Treasurer of the State of North Carolina now owns 58,623 shares of the company's stock valued at $42,958,000 after buying an additional 508 shares during the period. Finally, Osterweis Capital Management Inc. bought a new position in McKesson in the second quarter valued at approximately $166,000. Institutional investors own 85.07% of the company's stock.

McKesson Stock Performance

Shares of NYSE:MCK opened at $786.17 on Monday. The company has a 50 day moving average price of $769.23 and a two-hundred day moving average price of $839.09. The company has a market capitalization of $92.05 billion, a PE ratio of 20.44, a PEG ratio of 1.29 and a beta of 0.31. 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 announced its quarterly earnings results on Thursday, May 7th. The company reported $11.69 earnings per share for the quarter, topping analysts' consensus estimates of $11.56 by $0.13. McKesson had a net margin of 1.18% and a negative return on equity of 345.35%. The company had revenue of $96.30 billion for the quarter, compared to analysts' expectations of $101.35 billion. During the same period last year, the firm posted $10.12 earnings per share. The business'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. On average, sell-side analysts forecast that McKesson Corporation will post 44.28 earnings per share for the current year.

McKesson Announces Dividend

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

Insiders Place Their Bets

In other news, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the firm'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 sale, the chief accounting officer owned 632 shares of the company's stock, valued at $482,848. This trade represents a 17.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thomas L. Rodgers sold 2,388 shares of McKesson stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $761.09, for a total value of $1,817,482.92. Following the transaction, the executive vice president owned 3,090 shares in the company, valued at $2,351,768.10. This trade represents a 43.59% decrease in their position. The disclosure for this sale is available in the SEC filing. 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. In the last ninety days, insiders have sold 20,285 shares of company stock valued at $15,546,137. Insiders own 0.06% of the company's stock.

Wall Street Analyst Weigh In

MCK has been the subject of a number of analyst reports. Wall Street Zen lowered shares of McKesson from a "buy" rating to a "hold" rating in a report on Saturday, June 27th. Wells Fargo & Company cut their price target on McKesson from $925.00 to $812.00 and set an "equal weight" rating on the stock in a research note on Tuesday, May 12th. UBS Group raised their price target on McKesson from $1,000.00 to $1,050.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $875.00 price objective on shares of McKesson in a research note on Friday, May 8th. Finally, Barclays dropped their price objective on McKesson from $1,050.00 to $925.00 and set an "overweight" rating for the company in a report on Wednesday, June 10th. Fourteen 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 presently has an average rating of "Moderate Buy" and an average target price of $960.53.

McKesson 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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