HBK Sorce Advisory LLC Makes New Investment in McKesson Corporation $MCK

Key Points

• HBK Sorce Advisory purchased 1,219 McKesson shares worth approximately $1.07 million, while institutional investors collectively own 85.07% of the company.
• McKesson exceeded quarterly expectations, reporting $9.93 in earnings per share and $105.38 billion in revenue, with revenue up 7.7% year over year.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $977, and McKesson raised its quarterly dividend to $0.94 per share.

HBK Sorce Advisory LLC purchased a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor purchased 1,219 shares of the company's stock, valued at approximately $1,069,000.

Other hedge funds and other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. boosted its stake in shares of McKesson by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 12,104,719 shares of the company's stock valued at $9,929,380,000 after buying an additional 73,109 shares during the period. State Street Corp increased its stake in shares of McKesson by 0.5% during the fourth quarter. State Street Corp now owns 5,780,179 shares of the company's stock worth $4,746,118,000 after buying an additional 29,660 shares during the period. Geode Capital Management LLC increased its stake in shares of McKesson by 0.9% during the fourth quarter. Geode Capital Management LLC now owns 2,857,344 shares of the company's stock worth $2,333,520,000 after buying an additional 25,082 shares during the period. Franklin Resources Inc. raised its holdings in McKesson by 5.4% in the fourth quarter. Franklin Resources Inc. now owns 2,825,954 shares of the company's stock valued at $2,318,102,000 after acquiring an additional 144,633 shares in the last quarter. Finally, Norges Bank acquired a new stake in McKesson in the fourth quarter valued at approximately $1,651,137,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

Wall Street Analysts Forecast Growth

MCK has been the subject of several analyst reports. UBS Group boosted their price target 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. Robert W. Baird set a $1,015.00 price objective on shares of McKesson in a report on Thursday, August 6th. Weiss Ratings cut shares of McKesson from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, July 7th. Wall Street Zen lowered McKesson from a "buy" rating to a "hold" rating in a report on Saturday, June 27th. Finally, Morgan Stanley restated an "overweight" rating on shares of McKesson in a research note on Friday, August 7th. Fourteen investment 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 currently has an average rating of "Moderate Buy" and an average target price of $977.00.

McKesson Stock Performance

Shares of MCK stock opened at $868.72 on Monday. The stock's 50-day moving average is $813.45 and its two-hundred day moving average is $842.94. The firm has a market cap of $101.28 billion, a price-to-earnings ratio of 23.25, a PEG ratio of 1.71 and a beta of 0.30. McKesson Corporation has a 1 year low of $667.50 and a 1 year high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last posted its earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, beating the consensus estimate of $9.56 by $0.37. The business had revenue of $105.38 billion during the quarter, compared to the consensus estimate of $103.88 billion. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%.The business's quarterly revenue was up 7.7% on a year-over-year basis. During the same period in the previous year, the business earned $8.26 EPS. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, research analysts predict that McKesson Corporation will post 44.65 EPS for the current year.

McKesson Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be given a dividend of $0.94 per share. This represents a $3.76 annualized dividend and a yield of 0.4%. This is a positive change from McKesson's previous quarterly dividend of $0.82. The ex-dividend date of this dividend is Tuesday, September 1st. McKesson's dividend payout ratio is presently 8.78%.

Insider Buying and Selling

In other McKesson news, CEO Brian S. Tyler sold 8,463 shares of the business's stock in a transaction that occurred on Tuesday, July 7th. The stock was sold at an average price of $793.56, for a total value of $6,715,898.28. Following the completion of the sale, the chief executive officer owned 5,919 shares in the company, valued at approximately $4,697,081.64. The trade was a 58.84% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michele Lau sold 3,550 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $761.09, for a total value of $2,701,869.50. Following the completion of the sale, the executive vice president directly owned 3,247 shares of the company's stock, valued at $2,471,259.23. The trade was a 52.23% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 29,049 shares of company stock valued at $22,530,626 in the last 90 days. Company insiders own 0.06% of the company's stock.

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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