Stockman Wealth Management Inc. Decreases Stake in McKesson Co.

Stockman Wealth Management Inc. has significantly decreased its shareholding in McKesson Co. (NYSE:MCK - Free Report) by a notable 49.7% during the third quarter, as reflected in its latest Form 13F filing with the Securities and Exchange Commission (SEC). After selling 2,897 shares during the quarter, the fund now holds 2,929 shares of McKesson, which were valued at approximately $1.45 million at the close of the most recent reporting period.

Actions of Other Investors

Other institutional investors and hedge funds have also been adjusting their positions in McKesson. LRI Investments LLC established a new position worth about $28,000 in the first quarter. Meanwhile, Wolff Wiese Magana LLC increased its stake by an impressive 742.9% during the third quarter, bringing its total to 59 shares valued at $29,000 after acquiring 52 additional shares. ORG Wealth Partners LLC and Carmichael Hill & Associates Inc. both made new investments in McKesson during the third quarter and second quarter, valued at approximately $40,000 and $52,000 respectively. Additionally, Centennial Bank AR invested about $53,000 in the second quarter. Currently, institutional and hedge funds hold around 85.07% of McKesson's stock.

Analyst Opinions on McKesson

Multiple analysts have shared their views on McKesson's shares. Leerink Partners recently reduced their price target from $665.00 to $630.00 while maintaining an "outperform" rating for the stock. In a separate report, StockNews.com upgraded McKesson's rating from "hold" to "buy." Similarly, Baird R W elevated its rating from "hold" to "strong-buy." Barclays also increased their price target from $596.00 to $616.00, giving an "overweight" rating. Moreover, Evercore ISI raised its price target from $560.00 to $680.00 with an "outperform" rating. In terms of analyst ratings, two investment analysts have labeled the stock with a hold rating, while fourteen have provided a buy rating and one has designated it as a strong buy. According to MarketBeat.com, McKesson's stock has an overall average rating of "Moderate Buy" with an average price target of $625.64.

Insider Transactions

In recent insider activity, McKesson's CEO, Brian S. Tyler, sold 3,753 shares of company stock on September 5th, at an average price of $561.10, totaling around $2.1 million. Following this position adjustment, the CEO retains ownership of 78,586 shares worth approximately $44.09 million. This sale has not significantly impacted his overall stake in the company, which is reflective of a mere 0.00% decrease. The details of this transaction have been disclosed officially through filings with the SEC.

Recent Price Movements

As of midday trading on a recent Friday, McKesson’s stock price rose by $5.49, reaching $613.00. The trading volume was recorded at 1,270,690 shares, which is higher than the average volume of 846,233 shares. Over the past year, MCK has seen a low of $431.35 and a high of $637.51. The company's market capitalization stands at about $79.49 billion, with a P/E ratio of 31.75 and a P/E/G ratio of 1.29. McKesson also demonstrates a beta of 0.44. Currently, the firm has a 50-day moving average price of $513.03 and a 200-day moving average price of $551.60.

Quarterly Earnings and Dividends

McKesson's latest quarterly earnings, announced on November 6th, revealed an EPS of $7.07, surpassing analysts' expectations of $6.88 by $0.19. The company achieved a net margin of 0.77%, albeit with a negative return on equity of 243.82%. Revenue for the quarter was $93.65 billion, exceeding estimates of $89.33 billion, and it represented a year-over-year revenue increase of 21.3%. Projections indicate that McKesson Co. will report an EPS of 31.92 for the current fiscal year. Furthermore, McKesson has declared a quarterly dividend payment scheduled for January 2nd, with $0.71 per share to be distributed to shareholders of record by December 2nd. This results in an annualized dividend of $2.84, reflecting a yield of 0.46%, and the ex-dividend date will also be December 2nd. Presently, McKesson maintains a dividend payout ratio of 14.71%.

Company Overview

McKesson Corporation offers a range of healthcare services across the U.S. and internationally, operating in four key segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International Services. The U.S. Pharmaceutical segment is responsible for distributing a variety of pharmaceuticals, including branded, generic, specialty, and over-the-counter drugs, along with other healthcare-related products.

Conclusion

With significant adjustments from institutional investors, a positive analyst outlook, and strong financial performance, McKesson Co. continues to be a noteworthy entity within the healthcare sector.

Stocks, Investments, Health