Firetrail Investments PTY Ltd. Reduces Stock Position in McKesson Corporation $MCK

Key Points

• Firetrail Investments cut its McKesson stake by 26.6% in the fourth quarter, selling 6,524 shares and leaving it with 17,996 shares worth about $14.8 million. McKesson remains a significant holding for the firm, making up 4.9% of its portfolio.
• McKesson recently beat quarterly EPS estimates, reporting $11.69 per share versus $11.56 expected, helped by strength in oncology, specialty distribution, and biopharma services. However, revenue came in below forecasts at $96.3 billion versus $101.35 billion expected.
• The company guided fiscal 2027 EPS to $43.80-$44.60 and reaffirmed its long-term targets, which analysts viewed positively despite near-term revenue softness. Wall Street still broadly remains constructive, with 14 Buy ratings and a consensus Moderate Buy rating.

Firetrail Investments PTY Ltd. lowered its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 26.6% during the fourth quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 17,996 shares of the company's stock after selling 6,524 shares during the quarter. McKesson comprises approximately 4.9% of Firetrail Investments PTY Ltd.'s holdings, making the stock its 6th largest holding. Firetrail Investments PTY Ltd.'s holdings in McKesson were worth $14,834,000 as of its most recent SEC filing.

Other hedge funds also recently modified their holdings of the company. J.W. Cole Advisors Inc. lifted its stake in McKesson by 35.3% during the third quarter. J.W. Cole Advisors Inc. now owns 5,089 shares of the company's stock worth $3,931,000 after purchasing an additional 1,329 shares during the period. Cullen Investment Group LTD. raised its stake in shares of McKesson by 550.4% in the fourth quarter. Cullen Investment Group LTD. now owns 4,670 shares of the company's stock worth $3,811,000 after acquiring an additional 3,952 shares during the last quarter. Private Wealth Partners LLC raised its position in McKesson by 5.6% in the 3rd quarter. Private Wealth Partners LLC now owns 31,841 shares of the company's stock worth $24,598,000 after purchasing an additional 1,682 shares during the last quarter. AlphaQuest LLC raised its position in shares of McKesson by 91.2% during the third quarter. AlphaQuest LLC now owns 1,767 shares of the company's stock worth $1,365,000 after acquiring an additional 843 shares during the last quarter. Finally, Envestnet Asset Management Inc. raised its holdings in McKesson by 12.4% during the 3rd quarter. Envestnet Asset Management Inc. now owns 330,647 shares of the company's stock worth $255,438,000 after purchasing an additional 36,451 shares during the last quarter. Institutional investors own 85.07% of the company's stock.

McKesson News Summary

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson beat quarterly adjusted EPS estimates, reporting $11.69 per share versus $11.56 expected, and cited strength in oncology, specialty distribution, and biopharma services. Reuters article
• Positive Sentiment: The company guided fiscal 2027 EPS to $43.80-$44.60, which is roughly in line with expectations and suggests continued earnings growth. McKesson also reaffirmed its long-term financial targets. Yahoo Finance article
• Positive Sentiment: JPMorgan lowered its price target to $1,015 from $1,107 but kept an overweight rating, implying meaningful upside from the current share price. Benzinga article
• Positive Sentiment: William Blair reiterated a Buy rating, saying McKesson’s durable earnings power and fiscal 2027 growth outlook outweigh near-term revenue softness. TipRanks article
• Neutral Sentiment: McKesson advanced plans for its $13 billion medical-surgical spinoff/separation, a strategic move that could unlock value over time but also adds execution risk. MSN article
• Negative Sentiment: Revenue came in below Wall Street forecasts at $96.3 billion versus $101.35 billion expected, reinforcing concerns about softer sales momentum despite improved margins. Yahoo Finance article
• Negative Sentiment: The stock has been trading lower as investors focus on the revenue shortfall and near-term softness in the medical-surgical business, even with strong earnings and guidance. Zacks article

Wall Street Analysts Forecast Growth

MCK has been the subject of several recent research reports. Wall Street Zen upgraded shares of McKesson from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Morgan Stanley restated an "overweight" rating and set a $966.00 target price on shares of McKesson in a report on Thursday, January 29th. TD Cowen boosted their price target on McKesson from $1,000.00 to $1,012.00 and gave the company a "buy" rating in a report on Thursday, February 5th. William Blair began coverage on shares of McKesson in a research report on Tuesday, April 28th. They issued an "outperform" rating on the stock. Finally, Robert W. Baird set a $968.00 price target on McKesson in a research report on Wednesday, January 14th. Fourteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $970.73.

Insider Buying and Selling

In other McKesson news, EVP Michele Lau sold 2,725 shares of the firm's stock in a transaction on Monday, March 2nd. The stock was sold at an average price of $990.00, for a total transaction of $2,697,750.00. Following the transaction, the executive vice president owned 3,247 shares in the company, valued at $3,214,530. This trade represents a 45.63% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Maria Martinez sold 349 shares of the firm's stock in a transaction on Thursday, February 19th. The stock was sold at an average price of $939.87, for a total value of $328,014.63. Following the completion of the transaction, the director owned 301 shares in the company, valued at $282,900.87. The trade was a 53.69% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 3,264 shares of company stock valued at $3,205,315 over the last 90 days. 0.08% of the stock is owned by corporate insiders.

McKesson Stock Performance

Shares of MCK stock opened at $734.93 on Friday. McKesson Corporation has a 52 week low of $637.00 and a 52 week high of $999.00. The company has a 50-day simple moving average of $883.74 and a 200 day simple moving average of $859.93. The company has a market capitalization of $90.02 billion, a price-to-earnings ratio of 19.10, a PEG ratio of 1.06 and a beta of 0.35.

McKesson (NYSE:MCK - Get Free Report) last announced its 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 negative return on equity of 378.75% and a net margin of 1.18%.The company had revenue of $96.30 billion for the quarter, compared to analyst estimates of $101.35 billion. During the same quarter last year, the company earned $10.12 earnings per share. The firm'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. Sell-side analysts forecast that McKesson Corporation will post 44.25 EPS for the current year.

McKesson Announces Dividend

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

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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