Firetrail Investments PTY Ltd. Buys New Stake in McKesson Corporation $MCK

Key Points

• Firetrail Investments bought 15,910 McKesson shares worth approximately $11.95 million, making MCK its 11th-largest holding and representing 3.4% of its portfolio. Institutional investors collectively own 85.07% of the company.
• McKesson reported quarterly EPS of $9.93, exceeding estimates of $9.56, while revenue rose 7.7% year over year to $105.38 billion. The company issued fiscal 2027 EPS guidance of $44.20–$45.00.
• Analysts maintain a “Moderate Buy” consensus rating with an average price target of $977, compared with the stock’s reported price of $868.72. McKesson also raised its quarterly dividend to $0.94 per share from $0.82.

Firetrail Investments PTY Ltd. purchased a new stake in McKesson Corporation (NYSE:MCK - Free Report) during the second quarter, according to its most recent filing with the SEC. The fund purchased 15,910 shares of the company's stock, valued at approximately $11,949,000. McKesson comprises about 3.4% of Firetrail Investments PTY Ltd.'s portfolio, making the stock its 11th largest holding.

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

Insider Activity

In other news, Director Bradley E. Lerman sold 301 shares of the stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $892.33, for a total value of $268,591.33. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, EVP Thomas L. Rodgers sold 2,388 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $761.09, for a total value of $1,817,482.92. Following the sale, the executive vice president directly owned 3,090 shares of the company's stock, valued at $2,351,768.10. This represents a 43.59% 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. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 29,049 shares of company stock valued at $22,530,626. 0.06% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

Several equities analysts have weighed in on the company. Barclays cut 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. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $875.00 target price on shares of McKesson in a research report on Friday, May 8th. Wells Fargo & Company raised their target price on shares of McKesson from $812.00 to $933.00 and gave the company an "equal weight" rating in a report on Tuesday, August 11th. JPMorgan Chase & Co. reduced their price target on shares of McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. Finally, TD Cowen upped their price target on shares of McKesson from $989.00 to $1,006.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Fourteen research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $977.00.

McKesson Trading Down 0.0%

McKesson stock opened at $868.72 on Monday. McKesson Corporation has a 12-month low of $667.50 and a 12-month high of $999.00. The firm has a 50-day moving average price of $813.45 and a 200-day moving average price of $842.94. The firm has a market capitalization of $101.28 billion, a PE ratio of 23.25, a price-to-earnings-growth ratio of 1.71 and a beta of 0.30.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 EPS for the quarter, beating the consensus estimate of $9.56 by $0.37. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The company had revenue of $105.38 billion for the quarter, compared to the consensus estimate of $103.88 billion. During the same period in the prior year, the firm posted $8.26 EPS. The firm's revenue was up 7.7% compared to the same quarter last year. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, sell-side analysts predict 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. Stockholders of record on Tuesday, September 1st will be paid a dividend of $0.94 per share. This is a positive change from McKesson's previous quarterly dividend of $0.82. This represents a $3.76 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Tuesday, September 1st. McKesson's payout ratio is currently 8.78%.

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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