McKesson Corporation

(New York Stock Exchange)
Back to all articles
Slightly Bullish +15

iA Global Asset Management Inc. Grows Stake in McKesson Corporation ...

AI-generated analysis

πŸ“ˆ iA Global Asset Management Inc. increased its MCK stake by 27,700%, holding 6,394 shares worth $5.53 million after buying 6,371 new shares.

πŸ›οΈ Multiple institutional investors including University of Texas and Swiss RE established new positions in the fourth quarter.

πŸ“‰ JPMorgan Chase lowered its price target to $1,015 while UBS raised theirs to $1,050 with a buy rating.

πŸ“‰ Wells Fargo reduced its price objective to $812 and assigned an equal weight rating to the stock.

πŸ“‰ Wall Street Zen downgraded McKesson from a buy to a hold rating in late June.

πŸ’° The consensus analyst price target for MCK is currently set at $960.53.

πŸ“Š McKesson reported Q1 earnings of $11.69 EPS, beating the $11.56 consensus estimate.

πŸ“‰ Revenue came in at $96.3 billion, missing analyst estimates of $101.35 billion for the quarter.

πŸ“ˆ Year-over-year revenue growth remained positive at 6.0% despite the miss in absolute numbers.

πŸ’Έ Insiders sold a total of 20,285 shares valued at $15.5 million over the last quarter.

πŸ“‰ CAO Napoleon B. Rutledge, Jr. sold 133 shares for $101,612 under a Rule 10b5-1 plan.

πŸ“‰ EVP Michele Lau sold 3,550 shares for $2.7 million, reducing her ownership by over 50%.

πŸ’΅ The company paid a quarterly dividend of $0.82 per share with an ex-dividend date of June 1st.

πŸ“ˆ FY 2027 earnings guidance is set between $43.80 and $44.60 per share.

πŸ“Š The stock trades at a PEG ratio of 1.24 with a market capitalization of $90.03 billion.

Bullish Signals
  • iA Global Asset Management Inc. significantly increased its holdings in McKesson, adding 6,371 shares to reach a total value of $5.53 million.
  • University of Texas and Swiss RE both established new institutional positions in the fourth quarter.
  • JPMorgan Chase maintains an overweight rating on the stock despite lowering its price target.
  • UBS Group raised its price target to $1,050 and issued a buy rating for McKesson.
  • McKesson beat quarterly earnings expectations with EPS of $11.69 versus a consensus of $11.56.
  • The company achieved positive year-over-year revenue growth of 6.0% despite missing absolute revenue estimates.
  • Analysts forecast an average EPS of $44.28 for the current fiscal year against guidance of $43.80-$44.60.
  • McKesson maintains a solid dividend yield of 0.4% with a payout ratio of 8.53%.
Risk Factors
  • McKesson missed quarterly revenue estimates, reporting $96.3 billion against analyst expectations of $101.35 billion.
  • Wells Fargo lowered its price objective to $812 and assigned an equal weight rating to the stock.
  • Wall Street Zen downgraded McKesson from a buy to a hold rating in late June.
  • Insiders sold 20,285 shares valued at $15.5 million in the last quarter, indicating reduced executive ownership.
  • The company reported a negative return on equity of -345.35% for the quarter.
Full Analysis
iA Global Asset Management Inc. significantly increased its stake in McKesson Corporation (NYSE: MCK) by purchasing an additional 6,371 shares during the first quarter, bringing total holdings to 6,394 shares valued at $5.53 million. While this specific increase is mathematically massive due to a tiny prior position, other institutional investors like University of Texas and Swiss RE also established new positions in the fourth quarter, indicating continued institutional interest despite hedge funds holding 85.07% of the stock. Analyst sentiment remains mixed with conflicting price targets and ratings. JPMorgan Chase lowered its price objective to $1,015 while maintaining an overweight rating, whereas UBS raised its target to $1,050 with a buy rating. Conversely, Wells Fargo cut its target to $812 with an equal weight rating, and Wall Street Zen downgraded the stock to a hold. The consensus average price target stands at $960.53 based on data from MarketBeat. Recent insider activity shows executives selling shares under pre-arranged Rule 10b5-1 trading plans. CAO Napoleon B. Rutledge, Jr. sold 133 shares for approximately $101,612, while EVP Michele Lau sold 3,550 shares for roughly $2.7 million. In total, insiders sold 20,285 shares valued at $15.5 million in the last quarter, leaving only 0.06% of the stock owned by insiders. Financially, McKesson reported quarterly earnings of $11.69 per share, beating estimates of $11.56, though revenue of $96.3 billion missed analyst expectations of $101.35 billion. The company maintains a market cap of $90.03 billion and has set FY 2027 guidance between $43.80 and $44.60 EPS. It recently paid a quarterly dividend of $0.82 per share, resulting in an annualized yield of 0.4%.