Martingale Asset Management L P Lowers Position in McKesson Corporation $MCK

Key Points

• Martingale Asset Management trimmed its McKesson stake by 5.6% in the fourth quarter, selling 1,780 shares and leaving it with 30,205 shares valued at about $24.8 million.
• McKesson reported fiscal Q1 earnings of $11.69 per share, beating estimates, though revenue of $96.3 billion came in below expectations. The company also reaffirmed strong longer-term outlook with FY 2027 EPS guidance of $43.80 to $44.60.
• Recent insider activity has skewed toward selling, including CEO Brian S. Tyler and EVP Michele Lau, while analysts remain broadly positive with a Moderate Buy consensus and an average price target of $960.53.

Martingale Asset Management L P reduced its stake in McKesson Corporation (NYSE:MCK - Free Report) by 5.6% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 30,205 shares of the company's stock after selling 1,780 shares during the quarter. Martingale Asset Management L P's holdings in McKesson were worth $24,777,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also bought and sold shares of the company. Swiss RE Ltd. purchased a new stake in McKesson in the 4th quarter valued at $26,000. GGM Financials LLC purchased a new stake in McKesson in the 3rd quarter valued at $25,000. State of Wyoming purchased a new stake in McKesson in the 2nd quarter valued at $29,000. Board of the Pension Protection Fund purchased a new stake in McKesson in the 4th quarter valued at $33,000. Finally, Kingdom Financial Group LLC. purchased a new stake in McKesson in the 4th quarter valued at $33,000. 85.07% of the stock is owned by hedge funds and other institutional investors.

McKesson Price Performance

Shares of McKesson stock opened at $783.88 on Friday. McKesson Corporation has a 1 year low of $637.00 and a 1 year high of $999.00. The firm has a market cap of $94.22 billion, a PE ratio of 20.38, a P/E/G ratio of 1.30 and a beta of 0.31. The stock has a fifty day moving average price of $798.10 and a 200-day moving average price of $846.35.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results on Thursday, May 7th. The company reported $11.69 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to analyst estimates of $101.35 billion. During the same period last year, the firm posted $10.12 EPS. The business's revenue 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, equities 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 will be paid on Wednesday, July 1st. Stockholders of record on Monday, June 1st will be given 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 dividend yield of 0.4%. McKesson's dividend payout ratio (DPR) is currently 8.53%.

Wall Street Analyst Weigh In

A number of research firms recently commented on MCK. Evercore reissued an "outperform" rating on shares of McKesson in a research report on Thursday, March 5th. Raymond James Financial set a $970.00 price target on McKesson in a research report on Thursday, March 5th. Bank of America lowered their price target on McKesson from $1,040.00 to $1,000.00 and set a "buy" rating for the company in a research report on Monday, April 6th. Barclays lowered their price target on McKesson from $1,050.00 to $925.00 and set an "overweight" rating for the company in a research report on Wednesday. Finally, UBS Group raised their target price on McKesson from $1,000.00 to $1,050.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Fourteen 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 has a consensus rating of "Moderate Buy" and an average target price of $960.53.

Insider Transactions at McKesson

In other news, CEO Brian S. Tyler sold 4,929 shares of the stock in a transaction on Tuesday, June 9th. The stock was sold at an average price of $763.00, for a total transaction of $3,760,827.00. Following the completion of the transaction, the chief executive officer owned 22,845 shares in the company, valued at approximately $17,430,735. This represents a 17.75% decrease in their position. The transaction was disclosed in a legal 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 on Tuesday, May 26th. The stock was sold at an average price of $761.09, for a total value of $2,701,869.50. Following the transaction, the executive vice president owned 3,247 shares of the company's stock, valued at $2,471,259.23. The trade was a 52.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 11,822 shares of company stock worth $8,986,212 over the last 90 days. 0.08% of the stock is owned by insiders.

About McKesson

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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