McKesson Corporation $MCK Position Increased by Royal London Asset Management Ltd.

Key Points

• Royal London Asset Management increased its McKesson position by 1.1% to 112,241 shares, while institutional investors collectively own 85.07% of the company.
• McKesson beat quarterly estimates with EPS of $9.93 and revenue of $105.38 billion, up 7.7% year over year. The company also raised its quarterly dividend to $0.94 per share, though the yield remains modest at 0.4%.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $973.44. McKesson’s planned $2.25 billion Precision Medicine acquisition supports expansion into oncology and clinical research, while a recently disclosed cybersecurity incident presents a potential risk.

Royal London Asset Management Ltd. boosted its position in shares of McKesson Corporation (NYSE:MCK - Free Report) by 1.1% during the 2nd quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 112,241 shares of the company's stock after purchasing an additional 1,216 shares during the period. Royal London Asset Management Ltd. owned 0.10% of McKesson worth $84,809,000 at the end of the most recent reporting period.

A number of other hedge funds have also made changes to their positions in MCK. Horizon Investments LLC lifted its position in McKesson by 125.4% in the fourth quarter. Horizon Investments LLC now owns 8,679 shares of the company's stock worth $7,119,000 after purchasing an additional 4,828 shares during the period. Walter Public Investments Inc. acquired a new position in McKesson in the fourth quarter worth about $6,538,000. Summit Global Investments bought a new position in McKesson during the second quarter worth about $1,159,000. One Wealth Advisors LLC bought a new position in McKesson during the second quarter worth about $1,494,000. Finally, Artemis Investment Management LLP boosted its holdings in McKesson by 149.9% during the fourth quarter. Artemis Investment Management LLP now owns 11,671 shares of the company's stock valued at $9,574,000 after purchasing an additional 7,000 shares in the last quarter. 85.07% of the stock is owned by hedge funds and other institutional investors.

McKesson Price Performance

NYSE MCK opened at $895.59 on Friday. The stock's 50 day simple moving average is $833.31 and its 200 day simple moving average is $844.13. McKesson Corporation has a one year low of $679.65 and a one year high of $999.00. The firm has a market cap of $104.42 billion, a PE ratio of 23.97, a price-to-earnings-growth ratio of 1.75 and a beta of 0.30.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $9.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $9.56 by $0.37. The firm 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 revenue for the quarter was up 7.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $8.26 EPS. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, equities analysts expect that McKesson Corporation will post 44.65 earnings per share for the current year.

McKesson Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be issued a $0.94 dividend. This is an increase from McKesson's previous quarterly dividend of $0.82. This represents a $3.76 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Tuesday, September 1st. McKesson's dividend payout ratio (DPR) is 8.78%.

Key Stories Impacting McKesson

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: Expansion into precision medicine: McKesson agreed to acquire privately held Precision Medicine Group for approximately $2.25 billion. Precision Medicine provides clinical research, laboratory testing and commercialization services for biotechnology and pharmaceutical companies, giving McKesson greater exposure to oncology, personalized medicine and specialty care. McKesson Doubles Down on Healthcare Growth With Precision Medicine Acquisition
• Positive Sentiment: Higher-growth service mix: The acquisition is expected to strengthen McKesson’s clinical research and commercialization capabilities and deepen relationships with biopharmaceutical companies and oncology practices. Investors may view the transaction as a way to reduce reliance on lower-margin pharmaceutical distribution and participate in growth tied to new drug development. What Does McKesson Gain From Its Push Into Oncology And Clinical Research?
• Neutral Sentiment: Portfolio repositioning amid workforce changes: Coverage noted layoffs at Rx Savings while McKesson plans the Precision Medicine acquisition. The combination highlights an ongoing reallocation of resources, although the near-term effect on earnings and integration costs remains uncertain. Amid Layoffs, McKesson Plans Acquisition
• Negative Sentiment: Cybersecurity incident disclosed: McKesson reported discovering a cybersecurity incident on August 25 after the ShinyHunters group claimed it had stolen patient data. The company’s investigation and any resulting regulatory, remediation, privacy or reputational costs could weigh on sentiment, although the ultimate scope and financial impact were not yet clear. McKesson Discloses Breach After ShinyHunters Claims Patient Data Theft

Insider Activity at McKesson

In related news, EVP Thomas L. Rodgers sold 699 shares of the business's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $735.27, for a total transaction of $513,953.73. Following the completion of the transaction, the executive vice president owned 2,268 shares in the company, valued at approximately $1,667,592.36. The trade was a 23.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brian S. Tyler sold 8,463 shares of McKesson stock in a transaction on 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 transaction, the chief executive officer directly owned 5,919 shares in the company, valued at approximately $4,697,081.64. This represents a 58.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 23,111 shares of company stock worth $18,011,274. 0.06% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

MCK has been the topic of several analyst reports. Robert W. Baird set a $1,015.00 price objective on McKesson in a research note on Thursday, August 6th. Royal Bank Of Canada started coverage on McKesson in a research note on Wednesday, August 19th. They issued a "sector perform" rating and a $845.00 price target on the stock. Citigroup upped their price target on McKesson from $945.00 to $1,000.00 and gave the company a "buy" rating in a research report on Friday, July 24th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $875.00 price objective on shares of McKesson in a research note on Friday, May 8th. Finally, JPMorgan Chase & Co. cut their price objective 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 equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat.com, McKesson has an average rating of "Moderate Buy" and an average price target of $973.44.

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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