McKesson Corporation $MCK Shares Sold by Van ECK Associates Corp

Key Points

• Van ECK Associates reduced its McKesson stake by 9.8% in the second quarter, selling 7,777 shares and retaining 71,464 shares worth approximately $54 million. Institutional investors collectively own 85.07% of the company.
• McKesson reported stronger-than-expected quarterly results, with EPS of $9.93 versus the $9.56 consensus and revenue of $105.38 billion, up 7.7% year over year. The company also raised its quarterly dividend to $0.94 from $0.82.
• The company agreed to acquire Precision Medicine Group for approximately $2.25 billion to expand in clinical research, oncology and personalized medicine, while a recently disclosed cybersecurity incident could create regulatory and reputational risks.

Van ECK Associates Corp reduced its stake in McKesson Corporation (NYSE:MCK - Free Report) by 9.8% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 71,464 shares of the company's stock after selling 7,777 shares during the quarter. Van ECK Associates Corp owned 0.06% of McKesson worth $53,998,000 at the end of the most recent reporting period.

Other institutional investors have also modified their holdings of the company. BlackRock Inc. acquired a new stake in shares of McKesson during the second quarter worth $8,156,743,000. Norges Bank acquired a new position in McKesson in the 4th quarter valued at $1,651,137,000. Bank of America Corp DE acquired a new position in McKesson in the 2nd quarter valued at $998,896,000. Legal & General Group Plc purchased a new position in McKesson during the 2nd quarter worth $656,566,000. Finally, The Manufacturers Life Insurance Company purchased a new position in McKesson during the 2nd quarter worth $651,462,000. Institutional investors and hedge funds own 85.07% of the company's stock.

Insider Transactions at McKesson

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the firm's stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $764.00, for a total transaction of $101,612.00. Following the completion of the transaction, the chief accounting officer directly owned 632 shares in the company, valued at approximately $482,848. This trade represents a 17.39% 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, EVP Thomas L. Rodgers sold 699 shares of McKesson stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $735.27, for a total transaction of $513,953.73. Following the transaction, the executive vice president owned 2,268 shares of the company's stock, valued at approximately $1,667,592.36. The trade was a 23.56% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 23,111 shares of company stock worth $18,011,274. Corporate insiders own 0.06% of the company's stock.

McKesson Price Performance

Shares of NYSE:MCK opened at $895.59 on Friday. The firm has a market capitalization of $104.42 billion, a price-to-earnings ratio of 23.97, a price-to-earnings-growth ratio of 1.76 and a beta of 0.30. The business's 50 day simple moving average is $833.31 and its 200-day simple moving average is $844.13. McKesson Corporation has a 12 month low of $679.65 and a 12 month high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last released its quarterly earnings data on Wednesday, August 5th. The company reported $9.93 earnings per share 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%.McKesson's quarterly revenue was up 7.7% on a year-over-year basis. During the same period last year, the business posted $8.26 EPS. 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 earnings per share for the current year.

McKesson Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be given 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 is Tuesday, September 1st. McKesson's dividend payout ratio (DPR) is 10.06%.

Key McKesson News

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

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $875.00 target price on shares of McKesson in a report on Friday, May 8th. JPMorgan Chase & Co. reduced their price objective on shares of McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. Weiss Ratings cut McKesson from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, July 7th. TD Cowen upped their price objective on McKesson from $989.00 to $1,006.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Finally, Morgan Stanley reiterated an "overweight" rating on shares of McKesson in a research report on Friday, August 7th. Fourteen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, McKesson has an average rating of "Moderate Buy" and an average price target of $973.44.

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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