Plato Investment Management Ltd Invests $2.75 Million in McKesson Corporation $MCK

Key Points

• Plato Investment Management purchased 3,658 McKesson shares worth approximately $2.75 million during the second quarter, while institutional investors collectively own 85.07% of the stock.
• McKesson exceeded quarterly expectations, reporting $9.93 in EPS and $105.38 billion in revenue, with revenue up 7.7% year over year. The company also raised its quarterly dividend from $0.82 to $0.94 per share.
• Analysts maintain a generally positive view, with a “Moderate Buy” consensus and an average price target of $977 versus the stock’s reported price of $868.72; however, insiders sold $22.5 million of shares over the past three months.

Plato Investment Management Ltd bought a new position in McKesson Corporation (NYSE:MCK - Free Report) during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 3,658 shares of the company's stock, valued at approximately $2,748,000.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Bell Investment Advisors Inc purchased a new position in McKesson during the 2nd quarter valued at approximately $39,000. AMG National Trust Bank purchased a new stake in shares of McKesson during the 2nd quarter worth approximately $2,665,000. Avise Financial Cooperative Inc. bought a new position in shares of McKesson during the 2nd quarter valued at approximately $464,000. Simplicity Wealth LLC purchased a new position in shares of McKesson in the second quarter valued at $509,000. Finally, Uniting Wealth Partners LLC purchased a new position in shares of McKesson in the second quarter valued at $509,000. 85.07% of the stock is owned by institutional investors.

Insider Activity at McKesson

In related news, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $764.00, for a total value of $101,612.00. Following the sale, the chief accounting officer directly owned 632 shares of the company's stock, valued at $482,848. This represents a 17.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Brian S. Tyler sold 8,463 shares of the stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $793.56, for a total transaction of $6,715,898.28. Following the completion of the sale, the chief executive officer directly 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. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 29,049 shares of company stock worth $22,530,626 in the last three months. 0.06% of the stock is owned by insiders.

McKesson Stock Performance

NYSE:MCK opened at $868.72 on Monday. The stock's fifty day moving average is $813.45 and its 200 day moving average is $842.94. McKesson Corporation has a fifty-two week low of $667.50 and a fifty-two week high of $999.00. The firm has a market capitalization of $101.28 billion, a PE ratio of 23.25, a PEG ratio of 1.71 and a beta of 0.30.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings data on Wednesday, August 5th. The company reported $9.93 EPS for the quarter, topping the consensus estimate of $9.56 by $0.37. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The company had revenue of $105.38 billion during the quarter, compared to analyst estimates of $103.88 billion. During the same period in the previous year, the firm earned $8.26 earnings per share. McKesson's quarterly revenue was up 7.7% compared to the same quarter last year. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. Equities analysts forecast that McKesson Corporation will post 44.65 EPS for the current year.

McKesson Increases Dividend

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

Analysts Set New Price Targets

A number of research firms recently issued reports on MCK. Wall Street Zen downgraded shares of McKesson from a "buy" rating to a "hold" rating in a research note on Saturday, June 27th. William Blair began coverage on shares of McKesson in a research note on Tuesday, April 28th. They issued an "outperform" rating for the company. TD Cowen boosted their target price on shares of McKesson from $989.00 to $1,006.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Weiss Ratings cut shares of McKesson from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, July 7th. Finally, JPMorgan Chase & Co. lowered their price target on shares of McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating for the company in a report on Friday, May 8th. Fourteen equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average price target of $977.00.

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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