McKesson CEO Sells Shares while Stock Continues Steady Growth
Date: October 12, 2023
McKesson Co. (NYSE:MCK) made headlines on Monday, October 9th with the disclosure that CEO Brian S. Tyler had sold 3,471 shares of the company’s stock at an average price of $450.00 per share, resulting in a total transaction value of $1,561,950.00. Following this sale, Tyler now holds 67,408 shares of McKesson’s stock valued at $30,333,600.
The Securities & Exchange Commission filing regarding this transaction can be accessed through this hyperlink.
On Wednesday, October 11th, McKesson Co.’s share prices rose by $2.15 during mid-day trading to reach $456.66. A total of 953,943 shares were traded on that day as compared to the average volume of 884,420 shares. Furthermore, the firm has demonstrated a consistent performance over time with a fifty-day simple moving average of $428.82 and a two-hundred-day simple moving average of $403.29.
McKesson Co., one of the largest healthcare supply chain management companies globally, has experienced impressive growth in recent years despite global challenges faced by the healthcare industry due to COVID-19 and other factors impacting the economy.
With a market capitalization of approximately $61.60 billion and a beta rating of 0.58, McKesson has shown resilience and adaptability within its market segment. The company boasts a favorable price-to-earnings ratio (P/E) of 16.95 and a P/E-to-growth ratio (P/E/G) of 1.56.
Over the past few months, McKesson has received positive attention from analysts who remain optimistic about its performance in the long-term future. Morgan Stanley revised its price objective for McKesson from $426.00 to $459.00, maintaining an “overweight” rating for the stock on Thursday, August 3rd. Similarly, Argus upgraded its price target to $480.00 and assigned a “buy” rating to the stock.
StockNews.com also joined in praising McKesson’s strength by assigning a “strong-buy” rating to the company on Thursday, October 5th. UBS Group increased their target price from $470.00 to $480.00 while reiterating a “buy” rating on Thursday, August 3rd. Additionally, SpectralCast reaffirmed its “maintains” rating on shares of McKesson in a research report released on Thursday, June 29th.
Based on Bloomberg data analysis, McKesson currently holds a consensus rating of “Moderate Buy,” with an average price target of approximately $457.54.
Moreover, shareholders received good news when McKesson recently announced an increase in its quarterly dividend payout. Stockholders of record as of Friday, September 1st received dividends amounting to $0.62 per share compared to the previous quarterly dividend payout of $0.54 per share. The boosted dividend translates into an annualized dividend yield of 0.54%.
Investors interested in the long-term stability and growth potential offered by healthcare supply chain management would find McKesson Co.’s performance noteworthy despite ongoing challenges faced by the industry as a whole.
As we observe the continued progress marked by this transaction and the consistent growth of McKesson Co., market analysts remain cautiously optimistic that shareholder value will be sustained over time.
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McKesson Generates Impressive Quarterly Earnings and Gains Confidence from Institutional Investors
On October 12, 2023, healthcare distribution company McKesson (NYSE:MCK) released its quarterly earnings data from August 2nd. The report revealed that the company exceeded analysts’ expectations with an impressive $7.27 earnings per share (EPS) for the quarter, surpassing the consensus estimate of $5.85 by a substantial margin of $1.42.
Despite this positive development, investors were met with perplexity as McKesson’s net margin stood at a mere 1.32% and it reported a negative return on equity of 252.54%. These figures raise concerns regarding the company’s profitability and financial sustainability. However, it is worth noting that McKesson’s revenue for the quarter amounted to $74.48 billion, exceeding analyst predictions of $70.28 billion.
Furthermore, when comparing this quarter to the same period of the previous year, McKesson showcased growth with a revenue increase of 10.9%. This surge in revenue indicates that the company has made notable strides in expanding its market presence and attracting new business opportunities.
In analyzing McKesson’s performance further, we turn our attention to institutional investors who have taken positions in the company’s stock in recent times. BlackRock Inc., one of the world’s leading investment management corporations, augmented its stake in McKesson by 1.1% during the second quarter of this year.
Similarly, State Street Corp displayed confidence in McKesson’s potential by increasing its holdings by 3.0% during Q2 as well. Price T Rowe Associates Inc., MD significantly raised its stake in MCK during Q1 by an astonishing 324%, showcasing substantial trust and optimism in the future prospects of the healthcare distributor.
Geode Capital Management LLC also expressed confidence in McKesson by boosting its stake by 0.9% over Q2 – indicating their belief that this industry giant has room to grow and thrive despite recent challenges faced within the sector.
Finally, Morgan Stanley raised its holdings in McKesson by 11.0% during the fourth quarter as further evidence of institutional investor confidence in the company’s performance and potential for long-term success.
With 82.69% of the stock currently owned by institutional investors and hedge funds, this demonstrates a high degree of trust from established financial institutions in McKesson’s ability to deliver results in spite of recent headwinds faced within the healthcare industry.
As investors ponder the significance of McKesson’s recent earnings report and what it means for their portfolios, it is pertinent to note that equities research analysts anticipate that the company will post $27.21 earnings per share for the current fiscal year on average.
Given McKesson’s positive revenue growth, the impressive earnings per share for this quarter, and institutional investors’ continued interest in acquiring shares of this healthcare distributor, it will be interesting to observe how these developments shape the company’s trajectory moving forward.
