Rakuten Investment Management Inc. Has $13.52 Million Stake in McKesson Corporation $MCK

Key Points

• Rakuten Investment Management dramatically increased its McKesson stake in the fourth quarter, boosting holdings by 5,818.9% to 16,277 shares valued at about $13.52 million.
• Wall Street remains constructive on McKesson: the stock carries a consensus “Moderate Buy” rating, with 14 Buy ratings and three Hold ratings, and a consensus price target of $960.53.
• McKesson reported Q1 earnings of $11.69 per share, topping estimates, and also announced a quarterly dividend of $0.82 per share to be paid July 1.

Rakuten Investment Management Inc. boosted its position in shares of McKesson Corporation (NYSE:MCK - Free Report) by 5,818.9% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 16,277 shares of the company's stock after buying an additional 16,002 shares during the period. Rakuten Investment Management Inc.'s holdings in McKesson were worth $13,517,000 at the end of the most recent quarter.

A number of other large investors have also recently bought and sold shares of the company. Meiji Yasuda Asset Management Co Ltd. grew its stake in McKesson by 0.5% during the fourth quarter. Meiji Yasuda Asset Management Co Ltd. now owns 2,262 shares of the company's stock worth $1,855,000 after buying an additional 11 shares in the last quarter. Investment Research Partners LLC boosted its stake in shares of McKesson by 0.7% in the 4th quarter. Investment Research Partners LLC now owns 1,624 shares of the company's stock valued at $1,332,000 after purchasing an additional 11 shares in the last quarter. Obsidian Personal Planning Solutions LLC boosted its stake in shares of McKesson by 2.9% in the 3rd quarter. Obsidian Personal Planning Solutions LLC now owns 426 shares of the company's stock valued at $346,000 after purchasing an additional 12 shares in the last quarter. LRI Investments LLC boosted its stake in shares of McKesson by 12.1% in the 4th quarter. LRI Investments LLC now owns 111 shares of the company's stock valued at $91,000 after purchasing an additional 12 shares in the last quarter. Finally, Macroview Investment Management LLC boosted its stake in shares of McKesson by 3.9% in the 4th quarter. Macroview Investment Management LLC now owns 322 shares of the company's stock valued at $264,000 after purchasing an additional 12 shares in the last quarter. 85.07% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

MCK has been the topic of a number of research analyst reports. Evercore restated an "outperform" rating on shares of McKesson in a research note on Thursday, March 5th. Bank of America reduced their price target on shares of McKesson from $1,040.00 to $1,000.00 and set a "buy" rating on the stock in a research note on Monday, April 6th. Raymond James Financial set a $970.00 price target on shares of McKesson in a research note on Thursday, March 5th. Leerink Partners restated an "outperform" rating and issued a $1,085.00 price target on shares of McKesson in a research note on Thursday, March 5th. Finally, William Blair assumed coverage on shares of McKesson in a report on Tuesday, April 28th. They issued an "outperform" rating for the company. Fourteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, McKesson has a consensus rating of "Moderate Buy" and a consensus target price of $960.53.

McKesson Stock Performance

McKesson stock opened at $779.35 on Tuesday. McKesson Corporation has a 52-week low of $637.00 and a 52-week high of $999.00. The firm has a 50 day moving average price of $795.97 and a two-hundred day moving average price of $845.41. The firm has a market cap of $93.68 billion, a price-to-earnings ratio of 20.26, a PEG ratio of 1.29 and a beta of 0.31.

McKesson (NYSE:MCK - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported $11.69 earnings per share (EPS) for the quarter, topping the consensus estimate of $11.56 by $0.13. McKesson had a net margin of 1.18% and a negative return on equity of 345.35%. The firm had revenue of $96.30 billion during the quarter, compared to analyst estimates of $101.35 billion. During the same quarter last year, the business earned $10.12 EPS. The company's revenue was up 6.0% compared to the same quarter last year. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. As a group, equities research analysts predict that McKesson Corporation will post 44.28 EPS for the current fiscal year.

McKesson Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, July 1st. Shareholders of record on Monday, June 1st will be issued a dividend of $0.82 per share. The ex-dividend date is Monday, June 1st. This represents a $3.28 annualized dividend and a yield of 0.4%. McKesson's dividend payout ratio (DPR) is presently 8.53%.

Insider Activity

In other McKesson news, CEO Brian S. Tyler sold 4,929 shares of the firm's stock in a transaction that occurred on Tuesday, June 9th. The shares were sold at an average price of $763.00, for a total transaction of $3,760,827.00. Following the completion of the transaction, the chief executive officer owned 22,845 shares in the company, valued at approximately $17,430,735. This trade represents a 17.75% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Michele Lau sold 3,550 shares of the firm's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $761.09, for a total transaction of $2,701,869.50. Following the transaction, the executive vice president owned 3,247 shares of the company's stock, valued at approximately $2,471,259.23. The trade was a 52.23% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 11,822 shares of company stock worth $8,986,212 in the last 90 days. 0.08% of the stock is 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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