Renaissance Technologies LLC Buys 55,960 Shares of McKesson Corporation $MCK

Key Points

• Renaissance Technologies increased its McKesson stake by 91.3% in Q1, buying 55,960 additional shares and bringing its holding to 117,246 shares worth about $101.5 million.
• McKesson beat earnings expectations in its latest quarter, posting $11.69 EPS versus the $11.56 estimate, while revenue rose 6% year over year to $96.3 billion.
• The company raised its quarterly dividend to $0.94 per share from $0.82, and analysts currently rate the stock a Moderate Buy with an average price target of $962.67.

Renaissance Technologies LLC lifted its position in McKesson Corporation (NYSE:MCK - Free Report) by 91.3% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 117,246 shares of the company's stock after acquiring an additional 55,960 shares during the period. Renaissance Technologies LLC owned approximately 0.10% of McKesson worth $101,460,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also bought and sold shares of MCK. University of Texas Texas AM Investment Management Co. acquired a new position in McKesson during the fourth quarter valued at approximately $25,000. Swiss RE Ltd. acquired a new stake in McKesson in the fourth quarter worth $26,000. State of Wyoming bought a new position in shares of McKesson during the second quarter worth $29,000. Kingdom Financial Group LLC. bought a new position in shares of McKesson during the fourth quarter worth $33,000. Finally, Birchwood Financial Partners Inc. acquired a new position in shares of McKesson in the 4th quarter valued at $33,000. Institutional investors own 85.07% of the company's stock.

McKesson Stock Up 2.0%

Shares of MCK stock opened at $840.76 on Friday. McKesson Corporation has a 12-month low of $637.00 and a 12-month high of $999.00. The firm has a fifty day moving average of $780.04 and a 200-day moving average of $838.46. The company has a market capitalization of $98.44 billion, a price-to-earnings ratio of 21.85, a P/E/G ratio of 1.38 and a beta of 0.31.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $11.69 EPS for the quarter, beating the consensus estimate of $11.56 by $0.13. The business had revenue of $96.30 billion for the quarter, compared to analysts' expectations of $101.35 billion. McKesson had a net margin of 1.18% and a negative return on equity of 345.35%. The firm's revenue was up 6.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $10.12 EPS. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. On average, equities analysts expect that McKesson Corporation will post 44.28 EPS for the current year.

McKesson Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 1st will be paid a $0.94 dividend. The ex-dividend date of this dividend is Tuesday, September 1st. This represents a $3.76 annualized dividend and a dividend yield of 0.4%. This is a positive change from McKesson's previous quarterly dividend of $0.82. McKesson's dividend payout ratio (DPR) is 8.53%.

Insider Transactions at McKesson

In other news, EVP Michele Lau sold 3,550 shares of the business's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $761.09, for a total value of $2,701,869.50. Following the sale, the executive vice president directly 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. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Thomas L. Rodgers sold 699 shares of the company's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $735.27, for a total value of $513,953.73. Following the transaction, the executive vice president directly owned 2,268 shares of the company's stock, valued at $1,667,592.36. This represents a 23.56% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 28,748 shares of company stock valued at $22,262,035. 0.06% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

MCK has been the subject of a number of recent analyst reports. TD Cowen lowered their price objective on shares of McKesson from $1,012.00 to $989.00 and set a "buy" rating for the company in a research report on Tuesday, July 21st. Weiss Ratings lowered McKesson from a "buy (b)" rating to a "buy (b-)" rating in a report on Tuesday, July 7th. JPMorgan Chase & Co. decreased their target price on McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. William Blair began coverage on McKesson in a report on Tuesday, April 28th. They issued an "outperform" rating for the company. Finally, Wall Street Zen lowered McKesson from a "buy" rating to a "hold" rating in a research report on Saturday, June 27th. Fourteen investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $962.67.

McKesson News Summary

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

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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