Wealthfront Advisers LLC Acquires 1,502 Shares of McKesson Corporation $MCK

Key Points

• Wealthfront Advisers LLC increased its McKesson stake by 5.7% in Q1, buying 1,502 additional shares and bringing its total holdings to 27,965 shares worth about $24.2 million.
• Wall Street remains generally positive on McKesson, with 14 Buy ratings and 3 Hold ratings; the consensus price target is $960.53, even as several analysts trimmed their targets recently.
• McKesson reported Q1 EPS of $11.69, topping estimates, while revenue came in below expectations. The company also paid a quarterly dividend of $0.82 per share and said insiders have been selling shares in recent months.

Wealthfront Advisers LLC raised its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 5.7% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 27,965 shares of the company's stock after purchasing an additional 1,502 shares during the period. Wealthfront Advisers LLC's holdings in McKesson were worth $24,200,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Meiji Yasuda Asset Management Co Ltd. boosted 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 valued at $1,855,000 after purchasing an additional 11 shares in the last quarter. Investment Research Partners LLC lifted 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 buying an additional 11 shares during the last quarter. IHT Wealth Management LLC lifted its position in shares of McKesson by 0.9% during the 4th quarter. IHT Wealth Management LLC now owns 1,196 shares of the company's stock worth $981,000 after buying an additional 11 shares during the last quarter. LRI Investments LLC boosted its stake 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 buying an additional 12 shares in the last quarter. Finally, Macroview Investment Management LLC boosted its stake in McKesson by 3.9% in the fourth quarter. Macroview Investment Management LLC now owns 322 shares of the company's stock valued at $264,000 after buying an additional 12 shares in the last quarter. 85.07% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several equities analysts recently commented on MCK shares. Citigroup dropped their price objective on shares of McKesson from $975.00 to $945.00 and set a "buy" rating for the company in a research note on Thursday, May 14th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $875.00 price target on shares of McKesson in a report on Friday, May 8th. Bank of America dropped their price target on McKesson from $1,040.00 to $1,000.00 and set a "buy" rating for the company in a research note on Monday, April 6th. UBS Group boosted their price objective on McKesson from $1,000.00 to $1,050.00 and gave the stock a "buy" rating in a research report on Friday, May 8th. Finally, Barclays lowered their target price on McKesson from $1,050.00 to $925.00 and set an "overweight" rating for the company in a report on Wednesday, June 10th. 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 presently has an average rating of "Moderate Buy" and a consensus target price of $960.53.

McKesson Stock Down 0.8%

Shares of NYSE MCK opened at $797.33 on Thursday. The firm has a market cap of $93.35 billion, a PE ratio of 20.73, a P/E/G ratio of 1.32 and a beta of 0.31. The company's fifty day simple moving average is $767.45 and its 200 day simple moving average is $838.22. McKesson Corporation has a 12-month low of $637.00 and a 12-month high of $999.00.

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

McKesson Dividend Announcement

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

Insider Activity

In related news, CEO Brian S. Tyler sold 8,463 shares of the firm's stock in a transaction dated Tuesday, July 7th. The shares were sold at an average price of $793.56, for a total transaction of $6,715,898.28. Following the completion of the sale, the chief executive officer owned 5,919 shares in the company, valued at approximately $4,697,081.64. This trade represents a 58.84% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. 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 stock was sold at an average price of $761.09, for a total transaction of $2,701,869.50. Following the sale, the executive vice president owned 3,247 shares of the company's stock, valued at approximately $2,471,259.23. The trade was a 52.23% decrease in their position. 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 90 days, insiders have sold 28,748 shares of company stock worth $22,262,035. 0.06% of the stock is owned by insiders.

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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