Neumann Capital Management LLC Makes New Investment in McKesson Corporation $MCK

Key Points

• Neumann Capital Management initiated a McKesson position of 2,160 shares valued at approximately $1.84 million in the third quarter. Institutional investors and hedge funds collectively own 85.07% of the company.
• McKesson reported quarterly EPS of $9.93 and revenue of $105.38 billion, beating estimates while revenue increased 7.7% year over year. The stock has approached $1,000, and analysts maintain a “Moderate Buy” consensus with a $983.29 average price target.
• The company raised its quarterly dividend to $0.94 per share from $0.82, while two insiders disclosed stock sales under a pre-arranged trading plan.

Neumann Capital Management LLC purchased a new stake in shares of McKesson Corporation (NYSE:MCK - Free Report) in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 2,160 shares of the company's stock, valued at approximately $1,844,000.

Several other hedge funds and other institutional investors also recently made changes to their positions in the business. Whitener Capital Management Inc. acquired a new position in shares of McKesson during the 3rd quarter worth about $219,000. V Square Quantitative Management LLC boosted its stake in McKesson by 11.7% during the 3rd quarter. V Square Quantitative Management LLC now owns 840 shares of the company's stock valued at $717,000 after purchasing an additional 88 shares during the period. Davidson Capital Management Inc. grew its holdings in McKesson by 2.4% in the 3rd quarter. Davidson Capital Management Inc. now owns 6,850 shares of the company's stock valued at $5,849,000 after buying an additional 158 shares during the last quarter. Barlow Wealth Partners LLC grew its holdings in McKesson by 1.0% in the 3rd quarter. Barlow Wealth Partners LLC now owns 34,154 shares of the company's stock valued at $31,478,000 after buying an additional 334 shares during the last quarter. Finally, Triasima Portfolio Management inc. grew its holdings in McKesson by 3.0% in the 3rd quarter. Triasima Portfolio Management inc. now owns 579 shares of the company's stock valued at $494,000 after buying an additional 17 shares during the last quarter. 85.07% of the stock is owned by institutional investors and hedge funds.

McKesson News Summary

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: Leerink raised its price target to $1,070, implying additional upside from recent levels and reinforcing the bullish analyst outlook. Leerink lifts target for McKesson stock to USD 1,070
• Positive Sentiment: Jim Cramer called McKesson a health-care “winner,” adding favorable high-profile commentary as the stock continues to outperform the broader market. Jim Cramer: This Health Care Stock Is A Winner
• Positive Sentiment: McKesson approached $1,000 after setting a fresh 52-week high near $998.64, signaling strong momentum and sustained demand for the shares. McKesson Approaches $1,000 After Setting a New 52-Week High
• Positive Sentiment: Separate coverage reported an all-time high around $1,000.97, while another report highlighted a $1.4 billion McKesson commitment, adding to the company’s favorable news flow. McKesson stock hits all-time high
• Neutral Sentiment: The rally follows McKesson’s latest quarterly results, which exceeded EPS and revenue expectations and showed 7.7% year-over-year revenue growth. However, the stock is near its 12-month high, which may increase sensitivity to profit-taking.

Insider Buying and Selling

In other McKesson news, Director Bradley Lerman sold 301 shares of McKesson stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $892.33, for a total transaction of $268,591.33. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CAO B Jr sold 111 shares of the company's stock in a transaction that occurred on Tuesday, September 8th. The shares were sold at an average price of $891.45, for a total value of $98,950.95. Following the completion of the sale, the chief accounting officer owned 521 shares in the company, valued at approximately $464,445.45. This represents 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. 0.06% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several research analysts have commented on the company. Argus lifted their price target on McKesson from $850.00 to $970.00 and gave the stock a "buy" rating in a research report on Thursday, September 3rd. UBS Group increased their price objective on McKesson from $1,050.00 to $1,080.00 and gave the company a "buy" rating in a research report on Thursday, August 6th. Leerink Partners raised their price objective on shares of McKesson from $1,030.00 to $1,070.00 and gave the stock an "outperform" rating in a research note on Wednesday, October 7th. Weiss Ratings upgraded shares of McKesson from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, September 4th. Finally, Evercore reaffirmed an "outperform" rating and set a $950.00 target price (down from $1,000.00) on shares of McKesson in a research report on Thursday, August 6th. Fifteen investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $983.29.

McKesson Stock Performance

Shares of MCK stock opened at $997.40 on Friday. McKesson Corporation has a 52-week low of $723.68 and a 52-week high of $1,003.21. The stock has a market cap of $116.29 billion, a price-to-earnings ratio of 26.69, a P/E/G ratio of 1.94 and a beta of 0.30. The firm has a fifty day moving average of $894.99 and a 200-day moving average of $836.32.

McKesson (NYSE:MCK - Get Free Report) last issued its earnings results 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 business had revenue of $105.38 billion for the quarter, compared to analyst estimates of $103.88 billion. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The firm's revenue was up 7.7% on a year-over-year basis. During the same period in the previous year, the business earned $8.26 EPS. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. On average, sell-side analysts predict that McKesson Corporation will post 44.71 earnings per share for the current year.

McKesson Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st were issued a dividend of $0.94 per share. The ex-dividend date of this dividend was Tuesday, September 1st. This is a positive change 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%. McKesson's dividend payout ratio (DPR) is presently 10.06%.

McKesson 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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