Canada Pension Plan Investment Board Takes Position in McKesson Corporation $MCK

Canada Pension Plan Investment Board bought a new stake in McKesson Corporation (NYSE:MCK) in the 2nd quarter, Holdings Channel reports. The institutional investor bought 165,738 shares of the company’s stock, valued at approximately $125,232,000.

Several other institutional investors also recently modified their holdings of the business. University of Texas Texas AM Investment Management Co. acquired a new stake in McKesson during the 4th quarter valued at approximately $25,000. Swiss RE Ltd. bought a new position in McKesson in the 4th quarter valued at about $26,000. State of Wyoming bought a new stake in McKesson during the second quarter worth $29,000. Kingdom Financial Group LLC. bought a new stake in shares of McKesson in the 4th quarter worth $33,000. Finally, Birchwood Financial Partners Inc. bought a new stake in McKesson in the 4th quarter worth about $33,000. Institutional investors own 85.07% of the company’s stock.

Wall Street Analyst Weigh In

MCK has been the topic of a number of recent analyst reports. JPMorgan Chase & Co. lowered their target price on McKesson from $1,107.00 to $1,015.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. Wells Fargo & Company boosted their price objective on McKesson from $812.00 to $933.00 and gave the stock an “equal weight” rating in a report on Tuesday, August 11th. Weiss Ratings lowered shares of McKesson from a “buy (b)” rating to a “buy (b-)” rating in a report on Tuesday, July 7th. Royal Bank Of Canada assumed coverage on shares of McKesson in a research note on Wednesday, August 19th. They issued a “sector perform” rating and a $845.00 target price on the stock. Finally, Robert W. Baird set a $1,015.00 price objective on shares of McKesson in a report on Thursday, August 6th. Fourteen analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $973.44.

Insiders Place Their Bets

In related news, EVP Thomas L. Rodgers sold 699 shares of the 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 sale, the executive vice president owned 2,268 shares in the company, valued at approximately $1,667,592.36. This trade represents a 23.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 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 shares were 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 approximately $482,848. The trade was a 17.39% 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 ninety days, insiders sold 23,111 shares of company stock worth $18,011,274. 0.06% of the stock is currently owned by insiders.

McKesson Trading Down 0.8%

Shares of MCK stock opened at $898.06 on Thursday. The stock has a market capitalization of $104.70 billion, a P/E ratio of 24.03, a P/E/G ratio of 1.78 and a beta of 0.30. The firm’s 50 day moving average is $827.60 and its 200 day moving average is $844.17. McKesson Corporation has a 12-month low of $677.28 and a 12-month high of $999.00.

McKesson (NYSE:MCK) last announced its earnings results on Wednesday, August 5th. The company reported $9.93 EPS for the quarter, beating analysts’ consensus estimates of $9.56 by $0.37. McKesson had a net margin of 1.12% and a negative return on equity of 253.21%. The business had revenue of $105.38 billion during the quarter, compared to analysts’ expectations of $103.88 billion. During the same period in the prior year, the company earned $8.26 earnings per share. The firm’s revenue was up 7.7% on a year-over-year basis. 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 year.

McKesson Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be paid a dividend of $0.94 per share. This is a positive change from McKesson’s previous quarterly dividend of $0.82. The ex-dividend date is Tuesday, September 1st. This represents a $3.76 dividend on an annualized basis and a dividend yield of 0.4%. McKesson’s dividend payout ratio is presently 10.06%.

Key Headlines Impacting McKesson

Here are the key news stories impacting McKesson this week:

• Positive Sentiment: McKesson’s agreement to acquire Precision Medicine Group would expand its clinical research and drug-commercialization capabilities. Management expects the business to complement its oncology operations and create additional growth opportunities in specialty pharmaceuticals. Reuters: McKesson to buy Precision Medicine Group
• Positive Sentiment: Short interest in McKesson fell 33% to about 2.42 million shares as of August 14, representing just 2.1% of shares outstanding and 2.2 days of average trading volume. The reduction suggests less bearish positioning and may provide technical support for the stock.
• Positive Sentiment: Analyst commentary remains constructive on McKesson’s specialty distribution, oncology and technology businesses. The company’s latest reported quarter also exceeded earnings and revenue expectations, supporting the view that its core operations remain resilient. Zacks: Why retain McKesson stock
• Neutral Sentiment: McKesson Ventures’ latest report highlighted artificial intelligence, enterprise demand and investor confidence as major forces reshaping pharmaceutical technology. This could create strategic opportunities, although the report does not announce a specific financial commitment or revenue impact for MCK. McKesson Ventures pharma technology report
• Negative Sentiment: The Precision Medicine transaction comes amid a McKesson reorganization and reported layoffs. Investors may be concerned about restructuring costs, execution risk and whether the acquisition will deliver sufficient returns to offset its $2.25 billion price tag. McKesson acquisition and reorganization
• Negative Sentiment: Longer-term risks remain from drug-pricing pressure and potential healthcare-policy changes. These concerns could limit margins even as McKesson expands into higher-growth specialty and biopharmaceutical services. Zacks McKesson risks

McKesson 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.