McKesson Corporation $MCK Stock: N10 Wealth LLC Increases Holdings

Key Points

• N10 Wealth LLC increased its McKesson stake by 34.4% in the third quarter, bringing its holdings to 10,215 shares valued at approximately $8.7 million. Institutional investors and hedge funds collectively own 85.07% of MCK.
• Analysts maintain a generally positive outlook, with 15 Buy ratings and four Holds, resulting in a “Moderate Buy” consensus and an average price target of $983.29.
• McKesson reported quarterly EPS of $9.93, beating estimates, while revenue rose 7.7% year over year to $105.38 billion. The company also raised its quarterly dividend to $0.94 per share, representing a 0.4% yield.

N10 Wealth LLC lifted its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 34.4% in the 3rd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 10,215 shares of the company's stock after acquiring an additional 2,616 shares during the quarter. McKesson accounts for 2.4% of N10 Wealth LLC's portfolio, making the stock its 18th largest holding. N10 Wealth LLC's holdings in McKesson were worth $8,722,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also modified their holdings of MCK. BlackRock Inc. purchased a new stake in shares of McKesson during the second quarter valued at $8,156,743,000. Bank of America Corp DE increased its stake in McKesson by 2.4% in the 1st quarter. Bank of America Corp DE now owns 1,538,726 shares of the company's stock worth $1,331,552,000 after purchasing an additional 35,916 shares in the last quarter. Swedbank AB increased its stake in McKesson by 13.5% in the 1st quarter. Swedbank AB now owns 1,005,610 shares of the company's stock worth $870,215,000 after purchasing an additional 119,327 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in McKesson by 3.3% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 922,573 shares of the company's stock worth $697,096,000 after buying an additional 29,747 shares during the period. Finally, Legal & General Group Plc acquired a new stake in McKesson during the 2nd quarter worth about $656,566,000. 85.07% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of analysts have commented on the stock. Morgan Stanley set a $977.00 price objective on shares of McKesson in a research note on Tuesday, October 6th. Citigroup lifted their target price on shares of McKesson from $945.00 to $1,000.00 and gave the stock a "buy" rating in a research report on Friday, July 24th. Wells Fargo & Company boosted their price target on shares of McKesson from $812.00 to $933.00 and gave the company an "equal weight" rating in a report on Tuesday, August 11th. UBS Group upped 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. Finally, Royal Bank Of Canada reaffirmed a "sector perform" rating and issued a $845.00 price objective on shares of McKesson in a research note on Monday, September 14th. Fifteen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $983.29.

Insider Transactions at McKesson

In other news, Director Bradley Lerman sold 301 shares of the stock in a transaction that occurred on Monday, August 10th. The shares were sold at an average price of $892.33, for a total value of $268,591.33. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CAO B Jr sold 111 shares of the firm's stock in a transaction that occurred on Tuesday, September 8th. The stock was sold at an average price of $891.45, for a total transaction of $98,950.95. Following the sale, the chief accounting officer owned 521 shares of the company's stock, valued at approximately $464,445.45. This represents a 17.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.06% of the stock is owned by corporate insiders.

McKesson Stock Performance

Shares of MCK stock traded up $9.99 on Wednesday, reaching $971.87. 239,880 shares of the company's stock traded hands, compared to its average volume of 930,441. The company has a market capitalization of $113.31 billion, a P/E ratio of 26.01, a price-to-earnings-growth ratio of 2.00 and a beta of 0.30. McKesson Corporation has a 12-month low of $723.68 and a 12-month high of $999.00. The business's 50 day moving average price is $890.43 and its two-hundred day moving average price is $834.56.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The company reported $9.93 earnings per share (EPS) for the quarter, topping the consensus estimate of $9.56 by $0.37. McKesson had a negative return on equity of 253.21% and a net margin of 1.12%. The firm had revenue of $105.38 billion during the quarter, compared to the consensus estimate of $103.88 billion. During the same period in the prior year, the business earned $8.26 EPS. The business's revenue for the quarter was up 7.7% on a year-over-year basis. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. Research analysts predict 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. Stockholders of record on Tuesday, September 1st were issued a $0.94 dividend. The ex-dividend date was Tuesday, September 1st. This represents a $3.76 dividend on an annualized basis and a dividend yield of 0.4%. This is a positive change from McKesson's previous quarterly dividend of $0.82. McKesson's dividend payout ratio is currently 10.06%.

About McKesson

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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