North Star Asset Management Inc. Takes $3.38 Million Position in McKesson Corporation $MCK

Key Points

• North Star Asset Management initiated a $3.38 million position in McKesson by purchasing 4,478 shares during the second quarter. Institutional investors collectively own 85.07% of the company.
• Analysts remain broadly positive, with 14 Buy ratings and four Holds, producing a consensus “Moderate Buy” rating and a $973.44 price target. Recent targets from Barclays and Citigroup were raised to $1,000.
• McKesson exceeded quarterly earnings and revenue expectations, reporting $9.93 in EPS and $105.38 billion in revenue, while raising its quarterly dividend from $0.82 to $0.94 per share.

North Star Asset Management Inc. bought a new position in McKesson Corporation (NYSE:MCK - Free Report) in the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 4,478 shares of the company's stock, valued at approximately $3,384,000.

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Empowered Funds LLC purchased a new stake in McKesson during the second quarter worth $38,848,000. United Capital Financial Advisors LLC purchased a new position in shares of McKesson in the 2nd quarter valued at $2,709,000. Yukon Wealth Management Inc. purchased a new position in shares of McKesson in the 2nd quarter valued at $818,000. Hamilton Capital LLC bought a new position in shares of McKesson in the 2nd quarter worth $354,000. Finally, Old North State Trust LLC bought a new position in shares of McKesson in the 2nd quarter worth $753,000. 85.07% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several analysts have commented on MCK shares. Weiss Ratings lowered shares of McKesson from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, July 7th. Robert W. Baird set a $1,015.00 price objective on shares of McKesson in a research report on Thursday, August 6th. Barclays boosted 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. Morgan Stanley reissued an "overweight" rating on shares of McKesson in a research report on Friday, August 7th. Finally, Citigroup raised their target price on shares of McKesson from $945.00 to $1,000.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Fourteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $973.44.

Insider Buying and Selling

In other news, Director Bradley E. Lerman sold 301 shares of the stock in a transaction dated 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 document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Brian S. Tyler sold 8,463 shares of the firm's stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $793.56, for a total value of $6,715,898.28. Following the sale, the chief executive officer owned 5,919 shares in the company, valued at $4,697,081.64. This trade represents a 58.84% 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. In the last quarter, insiders have sold 23,111 shares of company stock worth $18,011,274. 0.06% of the stock is currently owned by company insiders.

McKesson Stock Performance

Shares of MCK opened at $890.20 on Friday. The stock has a 50-day moving average of $830.40 and a two-hundred day moving average of $843.76. The stock has a market cap of $103.79 billion, a P/E ratio of 23.82, a P/E/G ratio of 1.76 and a beta of 0.30. McKesson Corporation has a one year low of $677.28 and a one year high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, topping the consensus estimate of $9.56 by $0.37. The company 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%. McKesson's quarterly revenue was up 7.7% on a year-over-year basis. During the same quarter in the prior year, the company earned $8.26 EPS. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. Analysts predict that McKesson Corporation will post 44.65 EPS for the current fiscal year.

McKesson Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 1st will be paid a $0.94 dividend. The ex-dividend date is 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 dividend yield of 0.4%. McKesson's dividend payout ratio (DPR) is currently 8.78%.

About McKesson

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source