Engineers Gate Manager LP Buys 10,346 Shares of McKesson Corporation $MCK

Key Points

• Engineers Gate Manager LP increased its McKesson stake by 57.8% in the second quarter, purchasing 10,346 shares and bringing its total holdings to 28,240 shares valued at approximately $21.3 million. Institutional investors collectively own 85.07% of McKesson.
• McKesson exceeded quarterly expectations with $9.93 in earnings per share and $105.38 billion in revenue, while revenue rose 7.7% year over year. The company also raised its quarterly dividend to $0.94 per share, or $3.76 annually.
• Analysts maintain a generally positive outlook, with 14 Buy ratings and four Holds, producing a “Moderate Buy” consensus and an average price target of $973.44 versus the reported share price of $894.38.

Engineers Gate Manager LP grew its stake in McKesson Corporation (NYSE:MCK - Free Report) by 57.8% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 28,240 shares of the company's stock after buying an additional 10,346 shares during the quarter. Engineers Gate Manager LP's holdings in McKesson were worth $21,338,000 as of its most recent SEC filing.

Several other institutional investors have also recently made changes to their positions in MCK. Cidel Asset Management Inc. raised its stake in McKesson by 7.3% during the 2nd quarter. Cidel Asset Management Inc. now owns 559 shares of the company's stock worth $422,000 after acquiring an additional 38 shares during the period. Capital Analysts LLC lifted its holdings in McKesson by 87.5% during the second quarter. Capital Analysts LLC now owns 628 shares of the company's stock valued at $474,000 after purchasing an additional 293 shares in the last quarter. Pinnacle Wealth Management Advisory Group LLC boosted its position in shares of McKesson by 1.6% in the second quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,201 shares of the company's stock worth $908,000 after purchasing an additional 19 shares during the period. NorthRock Partners LLC boosted its position in shares of McKesson by 55.5% in the second quarter. NorthRock Partners LLC now owns 3,053 shares of the company's stock worth $2,307,000 after purchasing an additional 1,090 shares during the period. Finally, NewEdge Advisors LLC increased its stake in shares of McKesson by 20.3% in the second quarter. NewEdge Advisors LLC now owns 17,696 shares of the company's stock worth $13,371,000 after purchasing an additional 2,991 shares in the last quarter. Institutional investors own 85.07% of the company's stock.

McKesson Price Performance

McKesson stock opened at $894.38 on Thursday. The stock has a market cap of $104.28 billion, a P/E ratio of 23.93, a PEG ratio of 1.77 and a beta of 0.30. McKesson Corporation has a 1 year low of $687.68 and a 1 year high of $999.00. The firm's 50 day moving average price is $856.40 and its 200-day moving average price is $841.46.

McKesson (NYSE:MCK - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, topping analysts' consensus estimates of $9.56 by $0.37. The firm had revenue of $105.38 billion during 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%. McKesson's revenue for the quarter was up 7.7% on a year-over-year basis. During the same quarter in the prior year, the business earned $8.26 earnings per share. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, equities analysts expect that McKesson Corporation will post 44.65 EPS for the current year.

McKesson Increases Dividend

The business also recently disclosed 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 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 annualized dividend and a dividend yield of 0.4%. McKesson's payout ratio is currently 10.06%.

Insider Transactions at McKesson

In other news, CEO Brian S. Tyler sold 8,463 shares of the company's stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $793.56, for a total transaction of $6,715,898.28. Following the sale, the chief executive officer directly owned 5,919 shares in the company, valued at approximately $4,697,081.64. This represents a 58.84% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, 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 that occurred on Monday, August 10th. The shares were sold at an average price of $892.33, for a total value of $268,591.33. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 17,227 shares of company stock valued at $13,544,415. Company insiders own 0.06% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on MCK shares. Morgan Stanley restated an "overweight" rating on shares of McKesson in a research report on Friday, August 7th. UBS Group upped their target price on shares of McKesson from $1,050.00 to $1,080.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Wall Street Zen lowered McKesson from a "buy" rating to a "hold" rating in a research note on Saturday, June 27th. Barclays raised their price target on McKesson from $925.00 to $1,000.00 and gave the company an "overweight" rating in a report on Wednesday, August 19th. Finally, Royal Bank Of Canada initiated coverage on McKesson in a research report on Wednesday, August 19th. They issued a "sector perform" rating and a $845.00 price objective on the stock. Fourteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $973.44.

McKesson Profile

McKesson Corporation is a healthcare services and distribution company that supplies pharmaceuticals, specialty drugs, medical products and related services to pharmacies, hospitals, health systems, physicians and other healthcare providers. Its operations support the movement of prescription medicines and medical-surgical supplies from manufacturers to healthcare organizations and patients.

The company's businesses include pharmaceutical distribution, specialty pharmaceutical services, medical-surgical supply distribution and technology solutions for pharmacies and other healthcare providers.

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