Los Angeles Capital Management LLC Grows Holdings in McKesson Corporation $MCK

Key Points

• Los Angeles Capital Management increased its McKesson stake by 5.6% in the fourth quarter, bringing its holdings to 63,874 shares worth about $52.7 million.
• Insiders sold shares recently, including EVPs Thomas L. Rodgers and Michele Lau, with total insider sales of 6,760 shares valued at about $5.1 million over the past 90 days.
• Analysts remain generally positive on McKesson, with a consensus rating of “Moderate Buy” and an average target price of $968.87; the company also reported quarterly EPS above estimates and announced a $0.82 per-share dividend.

Los Angeles Capital Management LLC grew its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 5.6% in the 4th quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 63,874 shares of the company's stock after buying an additional 3,390 shares during the quarter. Los Angeles Capital Management LLC owned 0.05% of McKesson worth $52,730,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in MCK. Cullen Investment Group LTD. lifted its stake in McKesson by 550.4% during the fourth quarter. Cullen Investment Group LTD. now owns 4,670 shares of the company's stock worth $3,811,000 after purchasing an additional 3,952 shares during the last quarter. Pensionfund Sabic bought a new position in McKesson during the fourth quarter worth $1,887,000. Varma Mutual Pension Insurance Co lifted its stake in McKesson by 28.9% during the third quarter. Varma Mutual Pension Insurance Co now owns 21,853 shares of the company's stock worth $16,882,000 after purchasing an additional 4,900 shares during the last quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management lifted its stake in McKesson by 18.8% during the third quarter. Empirical Financial Services LLC d.b.a. Empirical Wealth Management now owns 10,009 shares of the company's stock worth $7,732,000 after purchasing an additional 1,585 shares during the last quarter. Finally, PNC Financial Services Group Inc. lifted its stake in McKesson by 24.3% during the third quarter. PNC Financial Services Group Inc. now owns 242,256 shares of the company's stock worth $187,152,000 after purchasing an additional 47,352 shares during the last quarter. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, EVP Thomas L. Rodgers sold 2,388 shares of the firm'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 $1,817,482.92. Following the completion of the transaction, the executive vice president owned 3,090 shares of the company's stock, valued at $2,351,768.10. This trade represents a 43.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 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. Also, EVP Michele Lau sold 3,550 shares of the firm's stock in a transaction dated 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 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 position. 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 6,760 shares of company stock valued at $5,123,773 in the last ninety days. Company insiders own 0.08% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently issued reports on MCK shares. Leerink Partners restated an "outperform" rating and set a $1,085.00 price objective on shares of McKesson in a research note on Thursday, March 5th. Evercore restated an "outperform" rating on shares of McKesson in a research note on Thursday, March 5th. 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. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $875.00 price objective on shares of McKesson in a research note on Friday, May 8th. Finally, Raymond James Financial set a $970.00 price objective on McKesson in a research note on Thursday, March 5th. Fourteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $968.87.

McKesson Price Performance

Shares of NYSE MCK opened at $776.51 on Friday. McKesson Corporation has a 1-year low of $637.00 and a 1-year high of $999.00. The business's fifty day moving average price is $806.32 and its two-hundred day moving average price is $848.96. The firm has a market capitalization of $93.34 billion, a PE ratio of 20.18, a P/E/G ratio of 1.28 and a beta of 0.31.

McKesson (NYSE:MCK - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $11.69 earnings per share 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 firm had revenue of $96.30 billion for the quarter, compared to analyst estimates of $101.35 billion. During the same period last year, the company earned $10.12 earnings per share. The firm's revenue for the quarter was up 6.0% on a year-over-year basis. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. Equities research analysts expect that McKesson Corporation will post 44.28 earnings per share for the current fiscal year.

McKesson Announces Dividend

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

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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