OMERS ADMINISTRATION Corp Boosts Stock Position in McKesson Corporation $MCK

Key Points

• OMERS Administration increased its McKesson stake by 20.9% in the first quarter, purchasing 1,677 additional shares and bringing its holdings to 9,707 shares valued at approximately $8.4 million. Institutional investors collectively own 85.07% of the company.
• McKesson reported quarterly EPS of $11.69, narrowly beating estimates, while revenue rose 6% year over year to $96.3 billion but fell short of expectations. The company issued fiscal 2027 EPS guidance of $43.80–$44.60.
• The company raised its quarterly dividend from $0.82 to $0.94 per share, while analysts remain broadly positive with a “Moderate Buy” consensus and an average price target of $962.67, despite some recent target reductions.

OMERS ADMINISTRATION Corp lifted its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 20.9% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 9,707 shares of the company's stock after buying an additional 1,677 shares during the quarter. OMERS ADMINISTRATION Corp's holdings in McKesson were worth $8,400,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. Brighton Jones LLC grew its position in shares of McKesson by 46.3% in the fourth quarter. Brighton Jones LLC now owns 2,523 shares of the company's stock valued at $1,438,000 after purchasing an additional 798 shares during the period. Caxton Associates LLP purchased a new stake in shares of McKesson during the first quarter worth about $233,000. Sivia Capital Partners LLC raised its position in shares of McKesson by 77.9% during the 2nd quarter. Sivia Capital Partners LLC now owns 685 shares of the company's stock worth $502,000 after purchasing an additional 300 shares during the last quarter. Treasurer of the State of North Carolina raised its position in shares of McKesson by 0.9% during the 2nd quarter. Treasurer of the State of North Carolina now owns 58,623 shares of the company's stock worth $42,958,000 after purchasing an additional 508 shares during the last quarter. Finally, Osterweis Capital Management Inc. purchased a new position in McKesson in the 2nd quarter valued at about $166,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

Key McKesson News

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson boosted its quarterly dividend to $0.94 per share from $0.82, signaling management confidence in cash flow and returning more capital to shareholders. McKesson Raises Quarterly Dividend by 15%
• Positive Sentiment: Shareholders backed the board, auditors, and executive compensation at the annual meeting, reducing governance uncertainty. McKesson Shareholders Back Board, Auditors, and Executive Pay
• Neutral Sentiment: Recent commentary from analysts has been mixed, with one piece noting conflicting views on McKesson and other healthcare names, which may keep sentiment balanced in the near term. Analysts Have Conflicting Sentiments on These Healthcare Companies
• Neutral Sentiment: TD Cowen reportedly lowered expectations for McKesson’s stock price, adding a cautionary note despite the company’s strong operational backdrop. TD Cowen Has Lowered Expectations for McKesson NYSE: MCK Stock Price

McKesson Stock Performance

NYSE MCK opened at $840.76 on Monday. The stock's fifty day moving average is $780.04 and its two-hundred day moving average is $838.56. The firm has a market capitalization of $98.44 billion, a P/E ratio of 21.85, a price-to-earnings-growth ratio of 1.38 and a beta of 0.31. McKesson Corporation has a fifty-two week low of $637.00 and a fifty-two week high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last issued its earnings results on Thursday, May 7th. The company reported $11.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $11.56 by $0.13. McKesson had a negative return on equity of 345.35% and a net margin of 1.18%.The company had revenue of $96.30 billion during the quarter, compared to analysts' expectations of $101.35 billion. During the same period in the prior year, the business earned $10.12 EPS. The firm's quarterly revenue was up 6.0% on a year-over-year basis. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. As a group, sell-side analysts forecast that McKesson Corporation will post 44.28 EPS for the current 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 given a dividend of $0.94 per share. The ex-dividend date is Tuesday, September 1st. This is an increase from McKesson's previous quarterly dividend of $0.82. This represents a $3.76 annualized dividend and a yield of 0.4%. McKesson's dividend payout ratio (DPR) is 8.53%.

Wall Street Analyst Weigh In

MCK has been the topic of several research analyst reports. Bank of America lowered their price objective on McKesson from $1,040.00 to $1,000.00 and set a "buy" rating on the stock in a report on Monday, April 6th. William Blair began coverage on McKesson in a report on Tuesday, April 28th. They set an "outperform" rating for the company. Wall Street Zen downgraded McKesson from a "buy" rating to a "hold" rating in a research report on Saturday, June 27th. Barclays lowered their price target on McKesson from $1,050.00 to $925.00 and set an "overweight" rating on the stock in a research note on Wednesday, June 10th. Finally, UBS Group boosted their price target on McKesson from $1,000.00 to $1,050.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Fourteen investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $962.67.

Insider Activity

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 133 shares of McKesson stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $764.00, for a total transaction of $101,612.00. Following the transaction, the chief accounting officer directly owned 632 shares of the company's stock, valued at $482,848. The trade was a 17.39% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michele Lau sold 3,550 shares of the business's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $761.09, for a total transaction of $2,701,869.50. Following the completion of the transaction, the executive vice president owned 3,247 shares in the company, valued at $2,471,259.23. The trade was a 52.23% 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 sold 28,748 shares of company stock valued at $22,262,035 over the last three months. 0.06% of the stock is currently owned by company insiders.

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.

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