Gateway Investment Advisers LLC Sells 1,461 Shares of McKesson Corporation $MCK

Key Points

• Gateway Investment Advisers LLC reduced its McKesson stake by 37.1% in the fourth quarter, selling 1,461 shares and ending with 2,476 shares worth about $2.03 million.
• McKesson beat fiscal Q4 EPS estimates with $11.69 per share versus $11.56 expected, but revenue of $96.3 billion came in below forecasts. The company still posted 6% revenue growth year over year and guided FY 2027 EPS to $43.80-$44.60.
• Analysts remain generally positive on the stock, with several firms raising or reiterating Buy/Outperform views and a consensus target price of $970.73. However, insider selling and the recent revenue miss have kept some pressure on the shares.

Gateway Investment Advisers LLC lowered its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 37.1% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,476 shares of the company's stock after selling 1,461 shares during the quarter. Gateway Investment Advisers LLC's holdings in McKesson were worth $2,031,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the business. Obsidian Personal Planning Solutions LLC raised its stake in McKesson by 2.9% in the third quarter. Obsidian Personal Planning Solutions LLC now owns 426 shares of the company's stock valued at $346,000 after buying an additional 12 shares during the last quarter. Berkshire Asset Management LLC PA grew its position in McKesson by 4.6% during the 3rd quarter. Berkshire Asset Management LLC PA now owns 294 shares of the company's stock worth $227,000 after purchasing an additional 13 shares during the last quarter. Norden Group LLC increased its stake in McKesson by 4.3% during the 4th quarter. Norden Group LLC now owns 317 shares of the company's stock valued at $260,000 after purchasing an additional 13 shares in the last quarter. Wealthcare Advisory Partners LLC increased its stake in McKesson by 0.7% during the 4th quarter. Wealthcare Advisory Partners LLC now owns 1,873 shares of the company's stock valued at $1,536,000 after purchasing an additional 13 shares in the last quarter. Finally, Red Door Wealth Management LLC increased its stake in McKesson by 3.8% during the 4th quarter. Red Door Wealth Management LLC now owns 358 shares of the company's stock valued at $293,000 after purchasing an additional 13 shares in the last quarter. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

McKesson Price Performance

McKesson stock opened at $734.93 on Friday. The stock has a market capitalization of $90.02 billion, a PE ratio of 19.10, a price-to-earnings-growth ratio of 1.09 and a beta of 0.35. McKesson Corporation has a 12 month low of $637.00 and a 12 month high of $999.00. The business has a 50 day simple moving average of $883.74 and a 200-day simple moving average of $859.93.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $11.69 EPS for the quarter, beating analysts' consensus estimates of $11.56 by $0.13. The business had revenue of $96.30 billion during the quarter, compared to analysts' expectations of $101.35 billion. McKesson had a negative return on equity of 378.75% and a net margin of 1.18%.The business's revenue was up 6.0% compared to the same quarter last year. During the same period in the previous year, the business earned $10.12 earnings per share. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. On average, equities research analysts anticipate that McKesson Corporation will post 44.24 EPS for the current fiscal year.

McKesson Dividend Announcement

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

Insider Activity

In other news, EVP Leann B. Smith sold 190 shares of the business's stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $945.00, for a total value of $179,550.00. Following the completion of the sale, the executive vice president directly owned 2,989 shares in the company, valued at $2,824,605. The trade was a 5.98% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Michele Lau sold 2,725 shares of the business's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $990.00, for a total value of $2,697,750.00. Following the sale, the executive vice president owned 3,247 shares of the company's stock, valued at $3,214,530. The trade was a 45.63% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 3,264 shares of company stock worth $3,205,315 over the last three months. 0.08% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

A number of research analysts have issued reports on MCK shares. UBS Group upped their price target on shares of McKesson from $1,000.00 to $1,050.00 and gave the company a "buy" rating in a research note on Friday. Robert W. Baird set a $968.00 price target on shares of McKesson in a research note on Wednesday, January 14th. William Blair started coverage on shares of McKesson in a research note on Tuesday, April 28th. They set an "outperform" rating on the stock. Wells Fargo & Company upped their price target on shares of McKesson from $914.00 to $925.00 and gave the company an "equal weight" rating in a research note on Thursday, February 5th. Finally, Weiss Ratings restated a "buy (b+)" rating on shares of McKesson in a research note on Monday. Fourteen analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $970.73.

McKesson News Roundup

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

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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