InTrack Investment Management Inc Reduces Stake in McKesson Co.

InTrack Investment Management Inc has reduced its stake in McKesson Co. (NYSE:MCK) by 9.4% during the fourth quarter. According to the company’s latest filing with the Securities and Exchange Commission, InTrack now holds 4,940 shares of McKesson’s stock after selling off 512 shares in that quarter. This stock represents about 2.0% of InTrack's overall holdings, positioning McKesson as the firm's ninth largest investment. By the end of the most recent quarter, InTrack's holdings in McKesson were valued at $2,933,000.

Changes from Other Investors

Additionally, various institutional investors have made modifications to their positions in McKesson recently. Distillate Capital Partners LLC saw an outrageous growth of 127,542.9% in its holdings during the second quarter, accumulating 35,740 shares valued at $20,874,000 after acquiring an extra 35,712 shares. Meanwhile, Chase Investment Counsel Corp increased its stake by 50.8% during the same period, now owning 8,985 shares worth $5,247,000 after adding 3,027 shares. Newbridge Financial Services Group Inc. also made headlines, skyrocketing its position by 2,143.1%, bringing their total to 1,458 shares valued at $851,000. Furthermore, Commerce Bank raised its holdings by 2.0%, now owning 156,781 shares worth $77,516,000. Sanctuary Advisors LLC joined the ranks of investors, acquiring a new position in McKesson valued at around $12,331,000. Overall, institutional investors collectively own 85.07% of McKesson’s stock.

Current Stock Performance

As of Friday, McKesson’s stock opened at $592.69. The company recorded a 52-week low of $464.42 and a high of $637.51. With a market capitalization of $75.24 billion, McKesson has a price-to-earnings ratio of 30.69, a PEG ratio of 1.26, and a beta of 0.52. The company’s fifty-day moving average is $595.51, while the two-hundred-day moving average is $561.29.

Earnings Report

McKesson recently released its quarterly earnings data on November 6. The company reported an earnings per share (EPS) of $7.07, surpassing the consensus estimate of $6.88 by $0.19. The total revenue for the quarter was $93.65 billion, significantly exceeding the predicted figure of $89.33 billion. However, McKesson reported a negative return on equity of 207.50% and a net margin of 0.77%. The revenue for the quarter marked a 21.3% year-over-year increase, compared to an EPS of $6.23 in the prior year's quarter. Analysts expect the EPS for McKesson Co. to be approximately 32.73 for the current year.

Dividend Announcement

The company has also declared a quarterly dividend, which was paid on January 2. Shareholders recorded on December 2 received a dividend of $0.71 per share. This translates to an annualized dividend of $2.84, offering a yield of 0.48%. The ex-dividend date fell on December 2, and McKesson's dividend payout ratio stands at 14.71%.

Insider Activity

In a recent insider transaction, Executive Vice President Leann B. Smith sold 579 shares of McKesson on January 2. The shares changed hands at an average price of $572.79, totaling approximately $331,645.41 for the transaction. Post-sale, Smith holds 864 shares valued at about $494,890.56, indicating a 40.12% decline in her position. This transaction was also publicly disclosed in a Securities and Exchange Commission filing.

Analyst Ratings

In the realm of analyst ratings, several firms have revised their outlook on McKesson. Leerink Partners cut its target price from $665.00 to $630.00 while maintaining an "outperform" designation. Morgan Stanley adjusted their target price upward from $612.00 to $642.00 and issued an "overweight" rating. StockNews.com upgraded McKesson from a "hold" to a "buy" rating. Additionally, Evercore ISI increased its target price from $560.00 to $680.00, maintaining an "outperform" rating. Citigroup also revised its target down from $713.00 to $677.00, while affirming a "buy" rating. Current data indicates that two analysts rate the stock as a hold, fourteen offer a buy recommendation, and one rates it as a strong buy, leading to an overall average rating of "Moderate Buy" with a target price of $646.14.

Company Overview

McKesson Corporation, located in the United States, offers a wide range of healthcare services globally. The operation is divided into four primary segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International operations. The U.S. Pharmaceutical sector focuses on distributing pharmaceutical drugs including branded, generic, specialty, and over-the-counter products along with other healthcare-related goods.

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