McKesson Corporation $MCK Shares Sold by Compass Financial Management LLC

Key Points

• Compass Financial Management cut its McKesson stake by 74.6% in the third quarter, selling 2,105 shares and retaining 717 shares valued at about $613,000.
• McKesson beat quarterly expectations, reporting adjusted EPS of $11.68 versus roughly $10.70 expected and revenue of $110.96 billion, up 7.5% year over year.
• Institutional investors own 85.07% of McKesson shares; analysts’ consensus rating is “Moderate Buy,” with an average price target of $1,023.24.

Compass Financial Management LLC trimmed its stake in McKesson Corporation (NYSE:MCK - Free Report) by 74.6% during the 3rd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 717 shares of the company's stock after selling 2,105 shares during the period. Compass Financial Management LLC's holdings in McKesson were worth $613,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also bought and sold shares of the stock. BlackRock Inc. purchased a new position in McKesson in the 2nd quarter worth approximately $8,156,743,000. Bank of America Corp DE bought a new position in shares of McKesson in the 2nd quarter worth $998,896,000. Legal & General Group Plc bought a new position in shares of McKesson in the 2nd quarter worth $656,566,000. The Manufacturers Life Insurance Company bought a new position in shares of McKesson in the 2nd quarter worth $651,462,000. Finally, Bank of New York Mellon Corp purchased a new stake in shares of McKesson during the 2nd quarter valued at $599,060,000. 85.07% of the stock is owned by hedge funds and other institutional investors.

Key McKesson News

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: For fiscal Q2 2027, McKesson reported adjusted EPS of $11.68 versus analyst estimates near $10.70, while revenue of about $111 billion also topped expectations and grew roughly 7.5% year over year. MCK Q2 Earnings Beat Estimates on Specialty Growth, Outlook Raised
• Positive Sentiment: Management raised fiscal 2027 adjusted EPS guidance to $45.60–$46.40, citing specialty-drug demand, higher prescription volumes, operating improvements and GLP-1 momentum. The company also completed its $2.25 billion Precision Medicine Group acquisition, expanding its healthcare services footprint. Earnings Call Highlights: Raised Guidance, GLP-1 Momentum
• Positive Sentiment: Several firms raised targets, including TD Cowen, Leerink Partners and Evercore ISI to $1,200; Deutsche Bank raised its target to $1,120. RBC also praised McKesson’s execution, and a Seeking Alpha analysis described normalized earnings as supporting an attractive valuation. TD Cowen Raises Price Target
• Neutral Sentiment: EVP Francisco Fraga sold 600 shares under a pre-arranged trading plan to cover tax withholding on vested equity awards; he retained 5,064 shares, making the transaction less indicative of a change in business outlook. SEC Filing
• Negative Sentiment: RBC’s “sector perform” rating came with a $965 target—below the recent share price—suggesting limited upside in that firm’s view despite its target increase. RBC on McKesson’s Execution

McKesson Price Performance

Shares of NYSE MCK opened at $1,075.38 on Friday. The stock has a market capitalization of $125.38 billion, a P/E ratio of 25.08, a PEG ratio of 2.13 and a beta of 0.27. McKesson Corporation has a one year low of $723.68 and a one year high of $1,121.50. The firm's 50 day simple moving average is $934.72 and its two-hundred day simple moving average is $866.92.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings data on Wednesday, November 4th. The company reported $11.68 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $10.72 by $0.96. The company had revenue of $110.96 billion during the quarter, compared to analysts' expectations of $109.90 billion. McKesson had a net margin of 1.12% and a negative return on equity of 235.48%. The firm's revenue was up 7.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $9.86 EPS. As a group, equities analysts expect that McKesson Corporation will post 44.71 earnings per share for the current fiscal year.

McKesson Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, January 4th. Stockholders of record on Tuesday, December 1st will be paid a dividend of $0.94 per share. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $3.76 annualized dividend and a dividend yield of 0.3%. McKesson's payout ratio is 9.67%.

Insider Buying and Selling at McKesson

In other news, Director Bradley Lerman sold 301 shares of McKesson stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $892.33, for a total transaction of $268,591.33. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO B Jr sold 111 shares of the firm's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $891.45, for a total transaction of $98,950.95. Following the completion of the sale, the chief accounting officer owned 521 shares of the company's stock, valued at $464,445.45. This trade represents a 17.56% 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. In the last ninety days, insiders have sold 1,812 shares of company stock valued at $1,794,182. 0.06% of the stock is currently owned by company insiders.

Analyst Ratings Changes

MCK has been the subject of a number of research analyst reports. Morgan Stanley set a $977.00 price objective on shares of McKesson in a report on Tuesday, October 6th. UBS Group increased their target price on McKesson from $1,080.00 to $1,200.00 and gave the company a "buy" rating in a research note on Friday, October 16th. TD Cowen raised their price target on McKesson from $1,006.00 to $1,200.00 and gave the company a "buy" rating in a research report on Thursday. Wall Street Zen raised McKesson from a "hold" rating to a "buy" rating in a research note on Saturday, October 17th. Finally, Citigroup lifted their price target on McKesson from $945.00 to $1,000.00 and gave the stock a "buy" rating in a research note on Friday, July 24th. Fifteen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $1,023.24.

McKesson Company Profile

McKesson Corporation is a healthcare services and information technology company that distributes pharmaceuticals and medical products to pharmacies, hospitals, health systems, physicians and other healthcare providers. The company also provides technology, data and business solutions designed to support prescription management, pharmacy operations and patient care.

McKesson's principal activities include pharmaceutical distribution, medical-surgical supply distribution, specialty pharmaceutical services and oncology care support.

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