Geode Capital Management LLC Has $2.33 Billion Holdings in McKesson Corporation $MCK

Key Points

• Geode Capital Management increased its McKesson stake by 0.9% in the fourth quarter, bringing its holdings to 2,857,344 shares valued at about $2.33 billion.
• Insiders have been selling shares, including EVP Michele Lau and EVP Thomas L. Rodgers, with total insider sales of 8,663 shares worth about $7.2 million over the last 90 days.
• McKesson reported Q1 EPS of $11.69, beating estimates, and also announced a quarterly dividend of $0.82 per share, while analysts broadly maintain a Moderate Buy view with a consensus target price of $968.87.

Geode Capital Management LLC lifted its position in shares of McKesson Corporation (NYSE:MCK - Free Report) by 0.9% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 2,857,344 shares of the company's stock after purchasing an additional 25,082 shares during the quarter. Geode Capital Management LLC owned approximately 2.33% of McKesson worth $2,333,520,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors also recently modified their holdings of the company. GGM Financials LLC acquired a new stake in shares of McKesson during the 3rd quarter worth approximately $25,000. State of Wyoming acquired a new stake in McKesson in the 2nd quarter valued at $29,000. Hopwood Financial Services Inc. acquired a new stake in McKesson in the 3rd quarter valued at $31,000. Board of the Pension Protection Fund acquired a new stake in McKesson in the 4th quarter valued at $33,000. Finally, Kingdom Financial Group LLC. acquired a new stake in McKesson in the 4th quarter valued at $33,000. Institutional investors and hedge funds own 85.07% of the company's stock.

Insider Activity

In other news, EVP Michele Lau sold 3,550 shares of the company's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $761.09, for a total transaction of $2,701,869.50. Following the completion of the transaction, the executive vice president directly owned 3,247 shares of the company's stock, valued at $2,471,259.23. This represents a 52.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at 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 the company's stock in a transaction dated 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 transaction, 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. Insiders sold 8,663 shares of company stock valued at $7,217,102 over the last 90 days. Corporate insiders own 0.08% of the company's stock.

McKesson Price Performance

Shares of McKesson stock opened at $755.86 on Thursday. McKesson Corporation has a 1 year low of $637.00 and a 1 year high of $999.00. The business has a 50-day moving average of $827.20 and a two-hundred day moving average of $853.88. The company has a market capitalization of $90.85 billion, a P/E ratio of 19.65, a price-to-earnings-growth ratio of 1.12 and a beta of 0.35.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The company reported $11.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $11.56 by $0.13. McKesson had a negative return on equity of 345.35% and a net margin of 1.18%.The company had revenue of $96.30 billion during the quarter, compared to the consensus estimate of $101.35 billion. During the same period in the prior year, the company earned $10.12 earnings per share. The company's revenue for the quarter 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, equities analysts anticipate that McKesson Corporation will post 44.29 EPS for the current fiscal year.

McKesson Dividend Announcement

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

Analysts Set New Price Targets

Several analysts recently commented on MCK shares. Raymond James Financial set a $970.00 price target on McKesson in a research note on Thursday, March 5th. Barclays boosted their price objective on McKesson from $960.00 to $1,050.00 and gave the stock an "overweight" rating in a research note on Wednesday, February 18th. Bank of America reduced their price objective on McKesson from $1,040.00 to $1,000.00 and set a "buy" rating on the stock in a research note on Monday, April 6th. Mizuho boosted their target price on McKesson from $880.00 to $885.00 and gave the stock a "neutral" rating in a research report on Thursday, February 5th. Finally, UBS Group boosted their target price 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. 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.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $968.87.

McKesson Company 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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