McKesson Corporation $MCK Stock: First Citizens Bank & Trust Co. Increases Stake

Key Points

• First Citizens Bank & Trust Co. nearly doubled its McKesson stake by 95.9% in the third quarter, bringing its holdings to 4,830 shares valued at approximately $4.12 million. Institutional investors collectively own 85.07% of the company.
• Analysts remain broadly bullish, with 15 Buy ratings and four Holds; McKesson has a “Moderate Buy” consensus rating and an average price target of $983.29, with several firms recently raising their targets to as high as $1,080.
• McKesson exceeded quarterly expectations, reporting $9.93 in EPS and $105.38 billion in revenue, while revenue increased 7.7% year over year. The company also raised its quarterly dividend from $0.82 to $0.94 per share.

First Citizens Bank & Trust Co. grew its stake in McKesson Corporation (NYSE:MCK - Free Report) by 95.9% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 4,830 shares of the company's stock after purchasing an additional 2,365 shares during the period. First Citizens Bank & Trust Co.'s holdings in McKesson were worth $4,124,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in MCK. Secure Asset Management LLC lifted its holdings in McKesson by 484.8% in the second quarter. Secure Asset Management LLC now owns 2,123 shares of the company's stock valued at $1,604,000 after buying an additional 1,760 shares during the period. Royal London Asset Management Ltd. boosted its stake in McKesson by 1.1% in the second quarter. Royal London Asset Management Ltd. now owns 112,241 shares of the company's stock valued at $84,809,000 after acquiring an additional 1,216 shares during the last quarter. Benchmark Investment Advisors LLC bought a new position in McKesson in the second quarter valued at approximately $441,000. Summit Global Investments acquired a new stake in McKesson during the 2nd quarter worth $1,159,000. Finally, One Wealth Advisors LLC acquired a new stake in McKesson during the 2nd quarter worth $1,494,000. Institutional investors own 85.07% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the company. Citigroup boosted their target price on McKesson from $945.00 to $1,000.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. UBS Group increased their price target on shares of McKesson from $1,050.00 to $1,080.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Barclays lifted their price objective on shares of McKesson from $925.00 to $1,000.00 and gave the stock an "overweight" rating in a research note on Wednesday, August 19th. Robert W. Baird set a $1,015.00 price objective on shares of McKesson in a report on Thursday, August 6th. Finally, Wall Street Zen cut shares of McKesson from a "buy" rating to a "hold" rating in a report on Saturday, June 27th. Fifteen equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, McKesson currently has a consensus rating of "Moderate Buy" and a consensus target price of $983.29.

Insider Transactions at McKesson

In other McKesson news, Director Bradley Lerman sold 301 shares of the business's stock in a transaction on Monday, August 10th. The shares were sold at an average price of $892.33, for a total transaction of $268,591.33. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CAO B Jr sold 111 shares of McKesson stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $891.45, for a total value of $98,950.95. Following the sale, the chief accounting officer directly owned 521 shares in the company, valued at $464,445.45. The trade was a 17.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.06% of the company's stock.

McKesson Stock Performance

Shares of NYSE:MCK opened at $977.31 on Thursday. McKesson Corporation has a 52-week low of $723.68 and a 52-week high of $999.00. The company has a market capitalization of $113.94 billion, a P/E ratio of 26.15, a price-to-earnings-growth ratio of 2.02 and a beta of 0.30. The company has a 50-day simple moving average of $892.49 and a 200 day simple moving average of $835.35.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $9.93 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $9.56 by $0.37. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%. 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 company posted $8.26 earnings per share. The business'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. As a group, equities analysts forecast that McKesson Corporation will post 44.73 earnings per share for the current year.

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st were given a $0.94 dividend. This is a boost from McKesson's previous quarterly dividend of $0.82. This represents a $3.76 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date was Tuesday, September 1st. McKesson's dividend payout ratio (DPR) is presently 10.06%.

McKesson Company Profile

McKesson Corporation NYSE: MCK is a healthcare services and information technology company that distributes pharmaceuticals, specialty drugs, medical supplies and other healthcare products. The company serves pharmacies, hospitals, health systems, physician practices, biopharma manufacturers and other healthcare providers, helping move products from manufacturers to patients and care settings.

McKesson's principal operations include pharmaceutical distribution, medical-surgical supply distribution and technology-enabled services for pharmacies and providers.

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