Meiji Yasuda Life Insurance Co Sells 1,725 Shares of McKesson Corporation $MCK

Key Points

• Meiji Yasuda Life Insurance sharply reduced its McKesson stake by 85.9% in the second quarter, selling 1,725 shares and retaining 284 shares valued at approximately $215,000. Institutional investors still own 85.07% of McKesson.
• Analysts remain broadly bullish: 14 analysts rate McKesson a Buy and four rate it a Hold, with an average price target of $973.44 versus the stock’s reported $895.59 price.
• McKesson exceeded quarterly earnings and revenue estimates, while raising its quarterly dividend from $0.82 to $0.94 per share. The company is also pursuing growth in precision medicine and oncology through a planned $2.25 billion acquisition, though a recently disclosed cybersecurity incident presents a potential risk.

Meiji Yasuda Life Insurance Co cut its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 85.9% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 284 shares of the company's stock after selling 1,725 shares during the period. Meiji Yasuda Life Insurance Co's holdings in McKesson were worth $215,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in MCK. University of Texas Texas AM Investment Management Co. bought a new position in McKesson during the 4th quarter worth $25,000. Swiss RE Ltd. bought a new stake in shares of McKesson in the fourth quarter valued at about $26,000. Delos Wealth Advisors LLC acquired a new position in shares of McKesson in the second quarter valued at about $27,000. State of Wyoming acquired a new position in shares of McKesson in the second quarter valued at about $29,000. Finally, Kingdom Financial Group LLC. bought a new position in McKesson during the fourth quarter worth about $33,000. Institutional investors own 85.07% of the company's stock.

Analyst Upgrades and Downgrades

MCK has been the subject of several analyst reports. Royal Bank Of Canada started coverage on shares of McKesson in a research note on Wednesday, August 19th. They issued a "sector perform" rating and a $845.00 price objective for the company. UBS Group raised their target price on shares of McKesson from $1,050.00 to $1,080.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Robert W. Baird set a $1,015.00 price target on shares of McKesson in a research report on Thursday, August 6th. Citigroup boosted their price target on McKesson from $945.00 to $1,000.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Finally, JPMorgan Chase & Co. reduced their price target on McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating on the stock in a research report on Friday, May 8th. Fourteen investment 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 has an average rating of "Moderate Buy" and an average target price of $973.44.

McKesson Stock Up 0.2%

MCK opened at $895.59 on Monday. McKesson Corporation has a twelve month low of $679.65 and a twelve month high of $999.00. The company has a 50-day simple moving average of $833.31 and a 200 day simple moving average of $843.29. The stock has a market capitalization of $104.42 billion, a price-to-earnings ratio of 23.97, a P/E/G ratio of 1.76 and a beta of 0.30.

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 analysts' consensus estimates of $9.56 by $0.37. The firm had revenue of $105.38 billion for the quarter, compared to the consensus estimate of $103.88 billion. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The business's revenue for the quarter was up 7.7% on a year-over-year basis. During the same period in the prior year, the company posted $8.26 earnings per share. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. Sell-side analysts anticipate that McKesson Corporation will post 44.65 EPS for the current fiscal year.

McKesson Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be paid a $0.94 dividend. This represents a $3.76 dividend on an annualized basis and a yield of 0.4%. This is a positive change from McKesson's previous quarterly dividend of $0.82. The ex-dividend date of this dividend is Tuesday, September 1st. McKesson's payout ratio is 8.78%.

Insider Activity

In other McKesson news, Director Bradley E. Lerman sold 301 shares of the firm's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $892.33, for a total value of $268,591.33. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CAO Napoleon B. Rutledge, Jr. sold 133 shares of McKesson stock in a transaction on Friday, June 5th. The shares were sold at an average price of $764.00, for a total value of $101,612.00. Following the completion of the transaction, the chief accounting officer owned 632 shares in the company, valued at approximately $482,848. The trade was a 17.39% decrease in their position. 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. Over the last ninety days, insiders sold 22,988 shares of company stock valued at $17,920,808. 0.06% of the stock is owned by insiders.

McKesson News Summary

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

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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