Walter Public Investments Inc. Raises Stock Holdings in McKesson Corporation $MCK

Key Points

• Walter Public Investments boosted its McKesson stake by 118.2% in the first quarter, buying 9,417 additional shares and bringing its total to 17,387 shares worth about $15.0 million.
• McKesson reported better-than-expected earnings of $11.69 per share for the quarter, though revenue of $96.3 billion came in below estimates. The company also raised its FY 2027 EPS guidance to 43.8–44.6.
• The company paid a quarterly dividend of $0.82 per share, while insiders have been selling shares recently, including CEO Brian S. Tyler’s sale of 8,463 shares under a pre-arranged trading plan.

Walter Public Investments Inc. increased its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 118.2% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 17,387 shares of the company's stock after purchasing an additional 9,417 shares during the period. McKesson accounts for 3.6% of Walter Public Investments Inc.'s holdings, making the stock its 7th biggest holding. Walter Public Investments Inc.'s holdings in McKesson were worth $15,046,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in MCK. University of Texas Texas AM Investment Management Co. purchased a new stake in McKesson during the 4th quarter valued at approximately $25,000. Swiss RE Ltd. purchased a new position in shares of 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. Vermillion & White Wealth Management Group LLC bought a new position in shares of McKesson during the third quarter worth $33,000. Finally, Board of the Pension Protection Fund purchased a new position in McKesson during the fourth quarter valued at $33,000. 85.07% of the stock is currently owned by institutional investors.

McKesson Stock Down 0.0%

MCK stock opened at $786.17 on Friday. McKesson Corporation has a 52 week low of $637.00 and a 52 week high of $999.00. The firm has a market capitalization of $92.05 billion, a P/E ratio of 20.44, a price-to-earnings-growth ratio of 1.29 and a beta of 0.31. The company has a fifty day simple moving average of $769.23 and a two-hundred day simple moving average of $838.98.

McKesson (NYSE:MCK - Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $11.69 earnings per share for the quarter, topping analysts' consensus estimates of $11.56 by $0.13. The firm had revenue of $96.30 billion for 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 business's quarterly revenue was up 6.0% on a year-over-year basis. 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. As a group, analysts anticipate that McKesson Corporation will post 44.28 EPS for the current year.

McKesson Dividend Announcement

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

Insider Buying and Selling

In other news, CEO Brian S. Tyler sold 8,463 shares of the firm's stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $775.13, for a total value of $6,559,925.19. Following the completion of the sale, the chief executive officer directly owned 14,382 shares of the company's stock, valued at $11,147,919.66. This trade represents a 37.05% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Napoleon B. Rutledge, Jr. sold 133 shares of McKesson stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $764.00, for a total value of $101,612.00. Following the completion of the transaction, the chief accounting officer owned 632 shares of the company's stock, valued at approximately $482,848. This trade represents a 17.39% 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. In the last three months, insiders have sold 20,285 shares of company stock valued at $15,546,137. 0.06% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of analysts have issued reports on the stock. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $875.00 price target on shares of McKesson in a report on Friday, May 8th. Weiss Ratings lowered McKesson from a "buy (b+)" rating to a "buy (b)" rating in a research report on Monday, May 18th. William Blair initiated coverage on McKesson in a report on Tuesday, April 28th. They issued an "outperform" rating on the stock. Wall Street Zen downgraded McKesson from a "buy" rating to a "hold" rating in a research report on Saturday, June 27th. Finally, Citigroup dropped their price target on McKesson from $975.00 to $945.00 and set a "buy" rating for the company in a research note on Thursday, May 14th. Fourteen equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target 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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