McKesson Corporation $MCK Shares Bought by Saudi Central Bank

Key Points

• Saudi Central Bank increased its McKesson stake by 88.2% in the second quarter, bringing its holdings to 8,574 shares valued at approximately $6.48 million. Institutional investors collectively own 85.07% of the company.
• McKesson reported quarterly earnings of $9.93 per share, exceeding estimates of $9.56, while revenue rose 7.7% year over year to $105.38 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $973.44.
• The company raised its quarterly dividend from $0.82 to $0.94 per share, equating to an annualized dividend of $3.76 and a 0.4% yield. Recent insider activity was negative, with executives and directors selling shares.

Saudi Central Bank raised its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 88.2% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 8,574 shares of the company's stock after purchasing an additional 4,018 shares during the quarter. Saudi Central Bank's holdings in McKesson were worth $6,479,000 as of its most recent SEC filing.

Other large investors have also modified their holdings of the company. University of Texas Texas AM Investment Management Co. purchased a new stake in shares of McKesson in the 4th quarter valued at $25,000. Swiss RE Ltd. purchased a new position in McKesson during the 4th quarter valued at about $26,000. Delos Wealth Advisors LLC purchased a new position in McKesson during the 2nd quarter valued at about $27,000. State of Wyoming acquired a new position in McKesson in the 2nd quarter valued at about $29,000. Finally, Kingdom Financial Group LLC. acquired a new position in McKesson in the 4th quarter valued at about $33,000. Institutional investors and hedge funds own 85.07% of the company's stock.

McKesson Stock Down 1.5%

Shares of NYSE:MCK opened at $907.35 on Friday. McKesson Corporation has a fifty-two week low of $682.35 and a fifty-two week high of $999.00. The firm's 50 day moving average price is $848.13 and its 200 day moving average price is $843.09. The stock has a market cap of $105.79 billion, a price-to-earnings ratio of 24.28, a price-to-earnings-growth ratio of 1.81 and a beta of 0.30.

McKesson (NYSE:MCK - Get Free Report) last posted 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. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The company had revenue of $105.38 billion during the quarter, compared to analysts' expectations of $103.88 billion. During the same quarter in the previous year, the business posted $8.26 EPS. The firm's revenue was up 7.7% on a year-over-year basis. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. On average, equities analysts anticipate that McKesson Corporation will post 44.65 EPS for the current year.

McKesson Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be paid a dividend of $0.94 per share. The ex-dividend date is Tuesday, September 1st. 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%. McKesson's payout ratio is presently 10.06%.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on MCK. TD Cowen upped their target price 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. Evercore reissued an "outperform" rating on shares of McKesson in a research report on Thursday, August 6th. Wells Fargo & Company boosted their price target on shares of McKesson from $812.00 to $933.00 and gave the stock an "equal weight" rating in a research note on Tuesday, August 11th. Morgan Stanley reaffirmed an "overweight" rating on shares of McKesson in a research report on Friday, August 7th. Finally, Weiss Ratings upgraded McKesson from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday. Fourteen analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $973.44.

Insider Buying and Selling at McKesson

In other news, CEO Brian S. Tyler sold 8,463 shares of the company'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 transaction, the chief executive officer directly owned 5,919 shares of the company's stock, valued at approximately $4,697,081.64. This represents a 58.84% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bradley E. Lerman sold 301 shares of the stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $892.33, for a total value of $268,591.33. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 22,156 shares of company stock worth $17,305,242 in the last three months. 0.06% of the stock is currently owned by corporate 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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