SurgoCap Partners LP Has $343.84 Million Stake in McKesson Corporation $MCK

Key Points

• SurgoCap Partners trimmed its McKesson stake by 7.3% in the fourth quarter, but still held 419,166 shares valued at about $343.8 million. McKesson remained the fund’s fourth-largest position and made up roughly 9.5% of its portfolio.
• Wall Street sentiment remains constructive, with 14 analysts rating McKesson a Buy and three Hold ratings. The consensus price target is $960.53, while several firms recently reiterated or raised their targets.
• McKesson reported better-than-expected quarterly EPS of $11.69 on May 7, though revenue came in below estimates at $96.3 billion. The company also announced a quarterly dividend of $0.82 per share payable July 1.

SurgoCap Partners LP lessened its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 7.3% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 419,166 shares of the company's stock after selling 33,095 shares during the quarter. McKesson accounts for approximately 9.5% of SurgoCap Partners LP's investment portfolio, making the stock its 4th biggest position. SurgoCap Partners LP owned about 0.34% of McKesson worth $343,838,000 at the end of the most recent quarter.

A number of other institutional investors also recently modified their holdings of MCK. Norges Bank bought a new stake in shares of McKesson in the fourth quarter valued at about $1,651,137,000. Swedbank AB boosted its position in shares of McKesson by 42.2% in the fourth quarter. Swedbank AB now owns 886,283 shares of the company's stock valued at $727,009,000 after acquiring an additional 263,189 shares during the period. Robeco Institutional Asset Management B.V. boosted its position in shares of McKesson by 73.7% in the fourth quarter. Robeco Institutional Asset Management B.V. now owns 432,578 shares of the company's stock valued at $354,839,000 after acquiring an additional 183,590 shares during the period. Danica Pension Livsforsikringsaktieselskab bought a new stake in shares of McKesson in the third quarter valued at about $135,352,000. Finally, Danske Bank A S bought a new stake in McKesson during the third quarter worth about $127,487,000. Institutional investors own 85.07% of the company's stock.

Analysts Set New Price Targets

Several research firms recently weighed in on MCK. Leerink Partners reaffirmed an "outperform" rating and set a $1,085.00 price objective on shares of McKesson in a research report on Thursday, March 5th. William Blair began coverage on shares of McKesson in a research report on Tuesday, April 28th. They set an "outperform" rating for the company. UBS Group upped their price objective on shares of McKesson from $1,000.00 to $1,050.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Weiss Ratings cut shares of McKesson from a "buy (b+)" rating to a "buy (b)" rating in a research report on Monday, May 18th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and set a $875.00 price objective on shares of McKesson in a research report on Friday, May 8th. Fourteen analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, McKesson currently has a consensus rating of "Moderate Buy" and an average price target of $960.53.

Insiders Place Their Bets

In related 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 value of $3,760,827.00. Following the completion of the transaction, the chief executive officer owned 22,845 shares in the company, valued at $17,430,735. This trade represents a 17.75% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 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 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 of the company's stock, valued at approximately $2,471,259.23. This trade represents 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 sold a total of 11,822 shares of company stock worth $8,986,212 in the last ninety days. Insiders own 0.08% of the company's stock.

McKesson Trading Down 0.6%

Shares of NYSE MCK opened at $779.35 on Tuesday. The company 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 Corporation has a 12 month low of $637.00 and a 12 month high of $999.00. The stock has a 50-day moving average price of $795.97 and a two-hundred day moving average price of $845.41.

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

McKesson Announces Dividend

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

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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