Stockman Wealth Management Cuts Holdings in McKesson Co.

Stockman Wealth Management Inc. has significantly reduced its stake in McKesson Co. (NYSE:MCK - Free Report) by 49.7% during the third quarter, as indicated in its latest Form 13F filing with the Securities and Exchange Commission (SEC). Following the sale of 2,897 shares, the fund currently holds 2,929 shares of McKesson, which are valued at approximately $1,448,000.

Institutional Investor Activity

Other hedge funds and institutional investors have either increased their stakes or diminished their shareholdings in McKesson. For instance, LRI Investments LLC made a new investment in McKesson worth about $28,000 in the first quarter. Wolff Wiese Magana LLC saw a significant boost in its position during the third quarter, raising it by 742.9% to own 59 shares valued at $29,000 after acquiring an additional 52 shares. Additionally, ORG Wealth Partners LLC invested about $40,000 in McKesson during the third quarter, while Carmichael Hill & Associates Inc. and Centennial Bank AR made new investments in the second quarter, worth $52,000 and $53,000, respectively. Currently, institutional investors hold roughly 85.07% of McKesson's shares.

Analysts' Ratings

Recent analyses of MCK shares have produced various opinions from analysts. Leerink Partners reduced their price target on McKesson's shares from $665.00 to $630.00 and maintained an “outperform” rating in a report dated October 7. Additionally, StockNews.com upgraded McKesson from a “hold” to a “buy” rating. Baird R W also shifted its recommendation from a “hold” to a “strong-buy” rating recently. Barclays has increased its price target on McKesson’s shares from $596.00 to $616.00, giving the company an “overweight” rating, while Evercore ISI raised their target from $560.00 to $680.00 and maintained an “outperform” rating. The consensus among analysts shows that two have given a “hold” rating, fourteen provided “buy” ratings, and one rated it as a strong buy. According to MarketBeat.com, the average stock rating is “Moderate Buy” with a target price of $625.64.

Insider Trading

In related insider news, CEO Brian S. Tyler sold 3,753 shares of McKesson on September 5 at an average price of $561.10, resulting in total proceeds of approximately $2,105,808.30. Following this transaction, Tyler retains ownership of 78,586 shares valued at around $44,094,604.60, indicating no change in his overall position. Insiders currently own about 0.11% of McKesson shares.

Stock Performance

McKesson's stock performed well recently, increasing by $5.49 on a trading day, reaching $613.00 during midday trading. The total trading volume was 1,270,690 shares, which surpassed the average volume of 846,233 shares. Over the past year, McKesson’s stock has seen a low of $431.35 and a high of $637.51. The company has a market capitalization of approximately $79.49 billion, a P/E ratio of 31.75, and a P/E/G ratio of 1.29.

Quarterly Earnings Report

On November 6, McKesson released its quarterly earnings, reporting an EPS of $7.07, beating consensus estimates of $6.88 by $0.19. The company’s revenue stood at $93.65 billion, exceeding analyst expectations of $89.33 billion and marking a 21.3% increase from the previous year. Analysts forecast McKesson will post an EPS of about 31.92 for the current year.

Dividend Details

McKesson also announced a quarterly dividend of $0.71 per share, which will be distributed to shareholders on January 2. The record date is set for December 2, so interested investors should own shares by then to receive the dividend. This dividend translates to an annual yield of 0.46%, with a payout ratio of 14.71%.

About McKesson Corporation

McKesson Corporation is a leading provider of healthcare services, operating in the U.S. and globally. The company is divided into four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment is responsible for distributing a range of drugs and healthcare products.

Stockman, McKesson, Investments