McKesson Corporation $MCK Shares Bought by Wellington Management Group LLP

Key Points

• Wellington Management increased its McKesson stake by 18.7% in the second quarter, holding 48,233 shares valued at approximately $36.4 million. Institutional investors collectively own 85.07% of the company.
• McKesson exceeded quarterly expectations, reporting $9.93 in EPS on $105.38 billion in revenue, with revenue up 7.7% year over year. The company raised its quarterly dividend from $0.82 to $0.94 per share.
• Analysts maintain a favorable outlook, giving McKesson a consensus “Moderate Buy” rating and an average price target of $973.44, while recent insider activity has primarily involved stock sales.

Wellington Management Group LLP raised its position in McKesson Corporation (NYSE:MCK - Free Report) by 18.7% in the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 48,233 shares of the company's stock after acquiring an additional 7,609 shares during the quarter. Wellington Management Group LLP's holdings in McKesson were worth $36,445,000 as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in MCK. Summit Global Investments acquired a new position in shares of McKesson in the 2nd quarter valued at $1,159,000. Walter Public Investments Inc. acquired a new stake in McKesson during the 4th quarter worth $6,538,000. One Wealth Advisors LLC purchased a new stake in McKesson in the second quarter valued at $1,494,000. North Dakota State Investment Board acquired a new position in McKesson in the fourth quarter valued at $3,969,000. Finally, E. Ohman J or Asset Management AB boosted its stake in McKesson by 26.6% in the second quarter. E. Ohman J or Asset Management AB now owns 7,205 shares of the company's stock valued at $5,444,000 after acquiring an additional 1,514 shares in the last quarter. Institutional investors and hedge funds own 85.07% of the company's stock.

McKesson Trading Down 1.5%

Shares of NYSE MCK opened at $907.35 on Friday. The stock has a market cap of $105.79 billion, a price-to-earnings ratio of 24.28, a PEG ratio of 1.83 and a beta of 0.30. McKesson Corporation has a 52 week low of $682.35 and a 52 week high of $999.00. The company's 50-day moving average price is $848.13 and its 200 day moving average price is $843.09.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results 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 company had revenue of $105.38 billion for the quarter, compared to the consensus estimate of $103.88 billion. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The company's revenue for the quarter was up 7.7% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $8.26 earnings per share. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, research analysts expect that McKesson Corporation will post 44.65 earnings per share for the current year.

McKesson Increases Dividend

The business 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 $0.94 dividend. This represents a $3.76 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date of this dividend is Tuesday, September 1st. This is an increase from McKesson's previous quarterly dividend of $0.82. McKesson's dividend payout ratio is currently 10.06%.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Royal Bank Of Canada began coverage on McKesson in a research report on Wednesday, August 19th. They set a "sector perform" rating and a $845.00 target price on the stock. Evercore restated an "outperform" rating on shares of McKesson in a research note on Thursday, August 6th. Barclays boosted their price objective on McKesson from $925.00 to $1,000.00 and gave the company an "overweight" rating in a research note on Wednesday, August 19th. Citigroup increased their price objective on McKesson from $945.00 to $1,000.00 and gave the company a "buy" rating in a report on Friday, July 24th. Finally, Robert W. Baird set a $1,015.00 target price on shares of McKesson in a research report on Thursday, August 6th. Fourteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat, McKesson currently has a consensus rating of "Moderate Buy" and a consensus target price of $973.44.

Insider Buying and Selling

In other news, CEO Brian S. Tyler sold 8,463 shares of the business's stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $793.56, for a total value 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 $4,697,081.64. The trade was a 58.84% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 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 on Monday, August 10th. The shares were sold at an average price of $892.33, for a total value of $268,591.33. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 22,156 shares of company stock worth $17,305,242. 0.06% of the stock is owned by corporate insiders.

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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