Scholtz & Company LLC Makes New Investment in McKesson Corporation $MCK

Key Points

• Scholtz & Company LLC initiated a $4.89 million position in McKesson during the second quarter, purchasing 6,473 shares. Institutional investors and hedge funds collectively own 85.07% of the company.
• McKesson exceeded quarterly expectations, reporting $9.93 in EPS and $105.38 billion in revenue, while revenue grew 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 outlook, with a “Moderate Buy” consensus and an average price target of $973.44 versus the stock’s reported price of $894.38. However, insiders sold 17,227 shares worth approximately $13.5 million over the past three months.

Scholtz & Company LLC bought a new position in McKesson Corporation (NYSE:MCK - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 6,473 shares of the company's stock, valued at approximately $4,891,000. McKesson comprises about 2.4% of Scholtz & Company LLC's portfolio, making the stock its 16th largest position.

A number of other large investors also recently modified their holdings of MCK. National Pension Service boosted its position in McKesson by 2.7% in the 2nd quarter. National Pension Service now owns 407,092 shares of the company's stock valued at $307,599,000 after buying an additional 10,878 shares during the last quarter. WINTON GROUP Ltd acquired a new stake in shares of McKesson during the 2nd quarter worth approximately $423,000. Engineers Gate Manager LP raised its position in shares of McKesson by 57.8% during the 2nd quarter. Engineers Gate Manager LP now owns 28,240 shares of the company's stock valued at $21,338,000 after acquiring an additional 10,346 shares during the last quarter. Cidel Asset Management Inc. boosted its position in shares of McKesson by 7.3% in the 2nd quarter. Cidel Asset Management Inc. now owns 559 shares of the company's stock worth $422,000 after purchasing an additional 38 shares during the last quarter. Finally, Capital Analysts LLC grew its stake in shares of McKesson by 87.5% during the second quarter. Capital Analysts LLC now owns 628 shares of the company's stock worth $474,000 after purchasing an additional 293 shares during the period. 85.07% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, Director Bradley Lerman sold 301 shares of the business's stock in a transaction dated Monday, August 10th. The stock was sold at an average price of $892.33, for a total value of $268,591.33. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Brian Tyler sold 8,463 shares of the company's stock in a transaction dated Tuesday, July 7th. The stock was sold at an average price of $793.56, for a total value of $6,715,898.28. Following the transaction, the chief executive officer directly owned 5,919 shares of the company's stock, valued at $4,697,081.64. This represents a 58.84% 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. Insiders sold a total of 17,227 shares of company stock worth $13,544,415 in the last three months. Company insiders own 0.06% of the company's stock.

McKesson Stock Performance

Shares of MCK opened at $894.38 on Thursday. The firm has a market cap of $104.28 billion, a P/E ratio of 23.93, a PEG ratio of 1.77 and a beta of 0.30. McKesson Corporation has a twelve month low of $687.68 and a twelve month high of $999.00. The firm's 50 day moving average price is $856.40 and its two-hundred day moving average price is $841.46.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $9.93 earnings per share (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 the consensus estimate of $103.88 billion. During the same quarter in the prior year, the firm earned $8.26 earnings per share. The firm's 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. On average, sell-side analysts anticipate that McKesson Corporation will post 44.65 earnings per share for the current fiscal 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 10.06%.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Robert W. Baird set a $1,015.00 price target on McKesson in a research note on Thursday, August 6th. Barclays upped their target price on shares of McKesson from $925.00 to $1,000.00 and gave the company 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. Royal Bank Of Canada assumed coverage on shares of McKesson in a research report on Wednesday, August 19th. They issued a "sector perform" rating and a $845.00 price objective for the company. Finally, TD Cowen lifted their target price on McKesson from $989.00 to $1,006.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Fourteen equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, McKesson has an average rating of "Moderate Buy" and an average target price of $973.44.

McKesson Profile

McKesson Corporation is a healthcare services and distribution company that supplies pharmaceuticals, specialty drugs, medical products and related services to pharmacies, hospitals, health systems, physicians and other healthcare providers. Its operations support the movement of prescription medicines and medical-surgical supplies from manufacturers to healthcare organizations and patients.

The company's businesses include pharmaceutical distribution, specialty pharmaceutical services, medical-surgical supply distribution and technology solutions for pharmacies and other healthcare providers.

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