McKesson Corporation $MCK Shares Sold by Main Street Research LLC

Key Points

• Main Street Research LLC trimmed its McKesson stake by 2.2% in the fourth quarter, selling 1,531 shares and leaving it with 67,361 shares valued at about $55.3 million.
• McKesson reported better-than-expected earnings of $11.69 per share for the quarter, though revenue of $96.3 billion fell short of analyst estimates; the company also reaffirmed FY2027 EPS guidance of 43.8 to 44.6.
• The company announced a quarterly dividend of $0.82 per share, and analysts remain mostly positive with 14 Buy ratings, 3 Hold ratings, and a consensus price target of $968.87.

Main Street Research LLC cut its stake in McKesson Corporation (NYSE:MCK - Free Report) by 2.2% during the 4th quarter, according to its most recent Form 13F filing with the SEC. The fund owned 67,361 shares of the company's stock after selling 1,531 shares during the period. McKesson makes up 3.1% of Main Street Research LLC's investment portfolio, making the stock its 15th largest position. Main Street Research LLC owned about 0.05% of McKesson worth $55,311,000 as of its most recent filing with the SEC.

Other hedge funds have also modified their holdings of the company. Meiji Yasuda Asset Management Co Ltd. lifted its position in McKesson by 0.5% during the fourth quarter. Meiji Yasuda Asset Management Co Ltd. now owns 2,262 shares of the company's stock valued at $1,855,000 after buying an additional 11 shares in the last quarter. Obsidian Personal Planning Solutions LLC lifted its position in McKesson by 2.9% during the third quarter. Obsidian Personal Planning Solutions LLC now owns 426 shares of the company's stock valued at $346,000 after buying an additional 12 shares in the last quarter. LRI Investments LLC lifted its position in McKesson by 12.1% during the fourth quarter. LRI Investments LLC now owns 111 shares of the company's stock valued at $91,000 after buying an additional 12 shares in the last quarter. Macroview Investment Management LLC lifted its position in McKesson by 3.9% during the fourth quarter. Macroview Investment Management LLC now owns 322 shares of the company's stock valued at $264,000 after buying an additional 12 shares in the last quarter. Finally, Berkshire Asset Management LLC PA lifted its position in McKesson by 4.6% during the third quarter. Berkshire Asset Management LLC PA now owns 294 shares of the company's stock valued at $227,000 after buying an additional 13 shares in the last quarter. 85.07% of the stock is owned by institutional investors and hedge funds.

McKesson Trading Down 0.1%

NYSE MCK opened at $765.30 on Monday. The company's fifty day simple moving average is $838.23 and its 200-day simple moving average is $855.78. McKesson Corporation has a 52 week low of $637.00 and a 52 week high of $999.00. The stock has a market cap of $91.99 billion, a P/E ratio of 19.89, a PEG ratio of 1.14 and a beta of 0.35.

McKesson (NYSE:MCK - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $11.69 EPS for the quarter, topping analysts' consensus estimates of $11.56 by $0.13. McKesson had a net margin of 1.18% and a negative return on equity of 345.35%. The business had revenue of $96.30 billion for the quarter, compared to analysts' expectations of $101.35 billion. During the same period in the previous year, the company posted $10.12 earnings per share. The business's revenue for the quarter was up 6.0% compared to the same quarter last year. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. On average, research analysts expect that McKesson Corporation will post 44.29 EPS for the current fiscal year.

McKesson Announces Dividend

The company 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. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend is Monday, June 1st. McKesson's payout ratio is presently 8.53%.

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Weiss Ratings cut shares of McKesson from a "buy (b+)" rating to a "buy (b)" rating in a research report on Monday, May 18th. Wall Street Zen raised shares of McKesson from a "hold" rating to a "buy" rating in a research report on Saturday, May 2nd. Raymond James Financial set a $970.00 target price on McKesson in a research note on Thursday, March 5th. UBS Group increased their target price on McKesson from $1,000.00 to $1,050.00 and gave the company a "buy" rating in a research note on Friday, May 8th. Finally, Leerink Partners reiterated an "outperform" rating and issued a $1,085.00 target price on shares of McKesson in a research note on Thursday, March 5th. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $968.87.

Insider Activity at McKesson

In other news, EVP Michele Lau sold 2,725 shares of the business's stock in a transaction on Monday, March 2nd. The shares were sold at an average price of $990.00, for a total transaction of $2,697,750.00. Following the transaction, the executive vice president directly owned 3,247 shares of the company's stock, valued at approximately $3,214,530. The trade was a 45.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Insiders own 0.08% of the company's stock.

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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