Manning & Napier Advisors LLC Takes $26.30 Million Position in McKesson Corporation $MCK

Key Points

• Manning & Napier Advisors disclosed a new first-quarter position in McKesson, buying 30,397 shares worth about $26.3 million. Institutional ownership remains very high, with hedge funds and other investors holding 85.07% of the stock.
• McKesson reported fiscal Q1 EPS of $11.69, beating analyst estimates, though revenue of $96.3 billion came in below expectations. The company also reaffirmed its outlook, with FY 2027 guidance set at 43.8 to 44.6 EPS.
• The company paid a quarterly dividend of $0.82 per share, equal to an annualized yield of about 0.4%. Meanwhile, analysts remain broadly positive, with a Moderate Buy consensus and an average price target of $960.53.

Manning & Napier Advisors LLC purchased a new position in McKesson Corporation (NYSE:MCK - Free Report) in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 30,397 shares of the company's stock, valued at approximately $26,304,000.

Several other institutional investors and hedge funds have also bought and sold shares of MCK. University of Texas Texas AM Investment Management Co. bought a new position in shares of McKesson in the 4th quarter worth approximately $25,000. Swiss RE Ltd. bought a new stake in shares of McKesson during the fourth quarter valued at approximately $26,000. State of Wyoming purchased a new stake in McKesson in the second quarter worth $29,000. Vermillion & White Wealth Management Group LLC purchased a new stake in McKesson in the third quarter worth $33,000. Finally, Board of the Pension Protection Fund bought a new position in McKesson in the fourth quarter worth $33,000. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

McKesson Price Performance

MCK stock traded up $12.50 during trading on Friday, hitting $805.31. 491,746 shares of the stock traded hands, compared to its average volume of 1,122,131. The stock has a market cap of $94.29 billion, a price-to-earnings ratio of 20.93, a price-to-earnings-growth ratio of 1.31 and a beta of 0.31. McKesson Corporation has a 1 year low of $637.00 and a 1 year high of $999.00. The firm's 50 day moving average is $766.35 and its two-hundred day moving average is $838.53.

McKesson (NYSE:MCK - Get Free Report) last issued its 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 net margin of 1.18% and a negative return on equity of 345.35%. The business had revenue of $96.30 billion during the quarter, compared to analysts' expectations of $101.35 billion. During the same period in the previous year, the company earned $10.12 earnings per share. The business'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. As a group, analysts anticipate that McKesson Corporation will post 44.28 EPS for the current fiscal year.

McKesson Dividend Announcement

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

Insiders Place Their Bets

In other news, EVP Thomas L. Rodgers sold 699 shares of the business's stock in a transaction on Tuesday, June 2nd. The stock was sold at an average price of $735.27, for a total value of $513,953.73. Following the completion of the transaction, the executive vice president owned 2,268 shares in the company, valued at $1,667,592.36. The trade was a 23.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. 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 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 sale, the executive vice president directly owned 3,247 shares in the company, valued at $2,471,259.23. This trade represents a 52.23% 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 sold a total of 28,748 shares of company stock worth $22,262,035 in the last 90 days. 0.06% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on MCK shares. Barclays dropped their target price on shares of McKesson from $1,050.00 to $925.00 and set an "overweight" rating on the stock in a report on Wednesday, June 10th. Weiss Ratings cut shares of McKesson from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday. Bank of America dropped their price objective on shares of 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. JPMorgan Chase & Co. cut their price objective on shares of McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating on the stock in a report on Friday, May 8th. Finally, William Blair assumed coverage on shares of McKesson in a research note on Tuesday, April 28th. They set an "outperform" rating for the company. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, McKesson presently has a consensus rating of "Moderate Buy" and an average price target of $960.53.

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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