Titan Investment Management LLC Acquires New Holdings in McKesson Corporation $MCK

Key Points

• Titan Investment Management opened a new position in McKesson during the fourth quarter, buying 4,291 shares worth about $3.52 million. The stake represents roughly 3.2% of Titan’s portfolio and is its seventh-largest holding.
• McKesson reported better-than-expected quarterly earnings of $11.69 per share, though revenue came in below analyst estimates at $96.3 billion. The company also raised its FY 2027 EPS guidance to $43.80-$44.60.
• The company declared a quarterly dividend of $0.82 per share, payable July 1, while shares recently fell 3.8% to about $750.23. Meanwhile, analysts remain broadly positive, with 14 Buy ratings and an average price target of $960.53.

Titan Investment Management LLC bought a new stake in McKesson Corporation (NYSE:MCK - Free Report) during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor bought 4,291 shares of the company's stock, valued at approximately $3,520,000. McKesson comprises approximately 3.2% of Titan Investment Management LLC's holdings, making the stock its 7th biggest holding.

Several other hedge funds also recently bought and sold shares of the stock. Meiji Yasuda Asset Management Co Ltd. lifted its holdings in shares of McKesson by 0.5% in the 4th quarter. Meiji Yasuda Asset Management Co Ltd. now owns 2,262 shares of the company's stock worth $1,855,000 after acquiring an additional 11 shares during the last quarter. Investment Research Partners LLC boosted its position in shares of McKesson by 0.7% during the 4th quarter. Investment Research Partners LLC now owns 1,624 shares of the company's stock worth $1,332,000 after purchasing an additional 11 shares during the period. IHT Wealth Management LLC increased its holdings in McKesson by 0.9% in the 4th quarter. IHT Wealth Management LLC now owns 1,196 shares of the company's stock valued at $981,000 after purchasing an additional 11 shares during the last quarter. Obsidian Personal Planning Solutions LLC increased its holdings in 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 during the last quarter. Finally, LRI Investments LLC raised its position in McKesson by 12.1% in the fourth quarter. LRI Investments LLC now owns 111 shares of the company's stock valued at $91,000 after purchasing an additional 12 shares during the period. Hedge funds and other institutional investors own 85.07% of the company's stock.

McKesson Stock Down 3.8%

Shares of MCK stock opened at $750.23 on Friday. McKesson Corporation has a 52 week low of $637.00 and a 52 week high of $999.00. The stock has a market capitalization of $87.84 billion, a PE ratio of 19.50, a P/E/G ratio of 1.28 and a beta of 0.31. The firm has a 50 day moving average of $790.35 and a two-hundred day moving average of $843.06.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly 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 business had revenue of $96.30 billion during the quarter, compared to the consensus estimate of $101.35 billion. McKesson had a net margin of 1.18% and a negative return on equity of 345.35%. The company's quarterly revenue was up 6.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $10.12 earnings per share. McKesson has set its FY 2027 guidance at 43.800-44.600 EPS. Analysts expect that McKesson Corporation will post 44.28 EPS for the current fiscal year.

McKesson Announces Dividend

The business 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 is 8.53%.

Insider Buying and Selling

In other news, EVP Thomas L. Rodgers sold 699 shares of the business's stock in a transaction dated Tuesday, June 2nd. The stock was sold at an average price of $735.27, for a total transaction of $513,953.73. Following the completion of the transaction, the executive vice president directly owned 2,268 shares of the company's stock, valued at approximately $1,667,592.36. The trade was a 23.56% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the company's stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $764.00, for a total transaction of $101,612.00. Following the sale, the chief accounting officer owned 632 shares in the company, valued at $482,848. The trade was a 17.39% 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 20,285 shares of company stock worth $15,546,137 over the last 90 days. 0.08% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

MCK has been the topic of a number of research reports. Leerink Partners restated an "outperform" rating and set a $1,085.00 price target on shares of McKesson in a research note on Thursday, March 5th. Wall Street Zen upgraded McKesson from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. Bank of America cut their price objective on McKesson from $1,040.00 to $1,000.00 and set a "buy" rating on the stock in a report on Monday, April 6th. Citigroup decreased their target price on McKesson from $975.00 to $945.00 and set a "buy" rating on the stock in a research note on Thursday, May 14th. Finally, Raymond James Financial set a $970.00 target price on McKesson in a research report on Thursday, March 5th. Fourteen analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $960.53.

McKesson Company Profile

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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