Heron Bay Capital Management Invests $31.57 Million in McKesson Corporation $MCK

Key Points

• Heron Bay Capital Management initiated a $31.57 million position in McKesson, buying 41,781 shares and making the stock 2.9% of its portfolio. Institutional investors collectively own 85.07% of McKesson.
• McKesson exceeded quarterly expectations with $9.93 in EPS and $105.38 billion in revenue, while revenue rose 7.7% year over year. The company also increased its quarterly dividend to $0.94 per share from $0.82.
• Wall Street maintains a positive outlook, with 14 analysts rating McKesson a Buy and four rating it a Hold; the consensus rating is Moderate Buy with an average price target of $973.44.

Heron Bay Capital Management purchased a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm purchased 41,781 shares of the company's stock, valued at approximately $31,569,000. McKesson accounts for approximately 2.9% of Heron Bay Capital Management's investment portfolio, making the stock its 15th biggest position.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of MCK. Callan Family Office LLC purchased a new position in McKesson in the 2nd quarter valued at $5,067,000. Expressive Wealth LLC purchased a new position in McKesson during the 2nd quarter worth $462,000. Keebeck Wealth Management acquired a new stake in shares of McKesson in the 2nd quarter worth $234,000. Keating Financial Advisory Services Inc. acquired a new stake in shares of McKesson in the 2nd quarter worth $168,000. Finally, OneAscent Investment Solutions LLC purchased a new stake in shares of McKesson in the second quarter valued at about $202,000. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

McKesson Trading Up 2.8%

MCK stock opened at $862.27 on Friday. The firm has a 50 day moving average of $820.97 and a 200-day moving average of $843.86. McKesson Corporation has a 12-month low of $673.38 and a 12-month high of $999.00. The company has a market cap of $100.53 billion, a price-to-earnings ratio of 23.07, a PEG ratio of 1.65 and a beta of 0.30.

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

McKesson Increases Dividend

The company also recently announced 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. The ex-dividend date is Tuesday, September 1st. 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 yield of 0.4%. McKesson's dividend payout ratio (DPR) is presently 8.78%.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on MCK. TD Cowen boosted their price target on shares of McKesson from $989.00 to $1,006.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $875.00 price objective on shares of McKesson in a report on Friday, May 8th. Morgan Stanley reiterated an "overweight" rating on shares of McKesson in a research report on Friday, August 7th. Evercore reissued an "outperform" rating on shares of McKesson in a research note on Thursday, August 6th. Finally, JPMorgan Chase & Co. reduced their price target on McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating for the company in a report on Friday, May 8th. Fourteen research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat, McKesson has a consensus rating of "Moderate Buy" and an average target price of $973.44.

Insider Buying and Selling

In other news, Director Bradley E. Lerman sold 301 shares of McKesson stock in a transaction on Monday, August 10th. The stock was sold at an average price of $892.33, for a total transaction of $268,591.33. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Brian S. Tyler sold 8,463 shares of the business's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $793.56, for a total transaction of $6,715,898.28. Following the completion of the sale, the chief executive officer owned 5,919 shares in the company, valued at $4,697,081.64. This represents a 58.84% 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. Insiders have sold 29,049 shares of company stock valued at $22,530,626 in the last three months. 0.06% of the stock is owned by insiders.

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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