Westpac Banking Corp Acquires New Position in McKesson Corporation $MCK

Key Points

• Westpac Banking Corp acquired 8,589 McKesson shares worth approximately $6.49 million in the second quarter. Institutional investors collectively own 85.07% of the company.
• Analysts maintain a favorable outlook, with 14 Buy ratings and four Holds, producing a consensus “Moderate Buy” rating and average price target of $973.44.
• McKesson exceeded quarterly expectations with $9.93 earnings per share and $105.38 billion in revenue, while raising its quarterly dividend from $0.82 to $0.94 per share.

Westpac Banking Corp bought a new position in McKesson Corporation (NYSE:MCK - Free Report) during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor bought 8,589 shares of the company's stock, valued at approximately $6,490,000.

A number of other institutional investors have also modified their holdings of the stock. Horizon Investments LLC raised its position in McKesson by 125.4% during the 4th quarter. Horizon Investments LLC now owns 8,679 shares of the company's stock valued at $7,119,000 after purchasing an additional 4,828 shares in the last quarter. Concurrent Investment Advisors LLC grew its position in shares of McKesson by 62.9% during the 4th quarter. Concurrent Investment Advisors LLC now owns 3,158 shares of the company's stock worth $2,590,000 after buying an additional 1,219 shares in the last quarter. Walter Public Investments Inc. purchased a new position in shares of McKesson during the fourth quarter valued at $6,538,000. Artemis Investment Management LLP increased its stake in shares of McKesson by 149.9% during the fourth quarter. Artemis Investment Management LLP now owns 11,671 shares of the company's stock valued at $9,574,000 after buying an additional 7,000 shares during the period. Finally, North Dakota State Investment Board bought a new stake in shares of McKesson in the fourth quarter valued at about $3,969,000. 85.07% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have issued reports on the stock. Royal Bank Of Canada assumed coverage on shares of McKesson in a report on Wednesday. They set a "sector perform" rating and a $845.00 target price on the stock. UBS Group upped their price target on shares of McKesson from $1,050.00 to $1,080.00 and gave the stock a "buy" rating in a research report on Thursday, August 6th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $875.00 price objective on shares of McKesson in a research note on Friday, May 8th. Morgan Stanley reissued an "overweight" rating on shares of McKesson in a report on Friday, August 7th. Finally, JPMorgan Chase & Co. lowered their target price on McKesson from $1,107.00 to $1,015.00 and set an "overweight" rating for the company in a report on Friday, May 8th. Fourteen equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $973.44.

McKesson Stock Performance

MCK stock opened at $862.27 on Friday. The firm has a market cap of $100.53 billion, a price-to-earnings ratio of 23.07, a PEG ratio of 1.65 and a beta of 0.30. The firm has a 50-day simple moving average of $820.97 and a two-hundred day simple moving average of $843.86. McKesson Corporation has a one year low of $673.38 and a one year high of $999.00.

McKesson (NYSE:MCK - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The company reported $9.93 earnings per share for the quarter, beating analysts' consensus estimates of $9.56 by $0.37. The business had revenue of $105.38 billion for the quarter, compared to analysts' expectations of $103.88 billion. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The company's revenue was up 7.7% compared to the same quarter last year. During the same period last year, the business earned $8.26 EPS. McKesson has set its FY 2027 guidance at 44.200-45.000 EPS. As a group, equities analysts predict 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 issued a $0.94 dividend. This is an increase from McKesson's previous quarterly dividend of $0.82. This represents a $3.76 annualized dividend and a yield of 0.4%. The ex-dividend date of this dividend is Tuesday, September 1st. McKesson's dividend payout ratio is presently 8.78%.

Insider Activity

In other news, Director Bradley E. Lerman sold 301 shares of the firm's stock in a transaction on Monday, August 10th. The stock was sold at an average price of $892.33, for a total value of $268,591.33. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Napoleon B. Rutledge, Jr. sold 133 shares of the business's stock in a transaction 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 transaction, the chief accounting officer owned 632 shares in the company, valued at approximately $482,848. This trade represents a 17.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 29,049 shares of company stock worth $22,530,626. Company insiders own 0.06% of the company's stock.

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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