AllianceBernstein L.P. has increased its investment in McKesson Corporation (NYSE:MCK) by 5.6% during the third quarter of 2023, as reported in its latest 13F filing with the Securities and Exchange Commission. The institutional investor now holds 2,394,699 shares of McKesson, following the acquisition of an additional 126,684 shares during this period. This stake represents approximately 0.6% of AllianceBernstein’s overall portfolio, making McKesson its 24th largest position. As of the most recent filing, AllianceBernstein’s investment in McKesson amounts to about $1.85 billion.
The trend of large institutional investments in McKesson continues. Other notable investors have also recently engaged with the stock. GGM Financials LLC initiated a new stake valued at $25,000, while the State of Wyoming entered the market with a position worth $29,000. Additionally, Hopwood Financial Services Inc. purchased shares valued at $31,000 in the third quarter. Abound Wealth Management notably increased its position by 104.3%, acquiring 47 shares for a total value of $37,000. Hedge funds and other institutional investors now hold approximately 85.07% of McKesson’s stock.
Insider Transactions and Stock Performance
In related news, McKesson’s Director, Maria Martinez, sold 349 shares on February 19, 2024, at an average price of $939.87, resulting in a total transaction value of approximately $328,014.63. Following this sale, Martinez retains ownership of 301 shares, valued at about $282,900.87. This sale marks a significant decrease of 53.69% in her stock ownership.
Similarly, Executive Vice President Thomas L. Rodgers sold 276 shares on January 5, 2024, at an average price of $816.18, totaling around $225,265.68. After this transaction, Rodgers owns 2,268 shares valued at approximately $1.85 million, reflecting a 10.85% reduction in his position. In the last three months, insiders have sold a total of 3,868 shares worth about $3.74 million. Insiders currently own only 0.08% of the company’s total stock.
Shares of McKesson opened at $941.51 on Friday. The stock has fluctuated significantly, with a 12-month low of $637.00 and a high of $999.00. The company’s market capitalization stands at $115.32 billion, with a price-to-earnings (P/E) ratio of 27.08 and a beta of 0.38.
Financial Performance and Future Outlook
On February 4, 2024, McKesson reported strong quarterly earnings, posting earnings per share (EPS) of $9.34, surpassing analysts’ expectations of $9.19 by $0.15. Revenue for the quarter reached $106.16 billion, exceeding projections of $105.98 billion. The company experienced an 11.4% revenue increase compared to the same quarter the previous year, with the prior year’s EPS recorded at $8.03. For fiscal year 2026, McKesson has provided guidance of $38.80-$39.20 EPS, while analysts predict an average of $32.77 for the current fiscal year.
In addition to solid financial performance, McKesson recently announced a quarterly dividend of $0.82 per share, payable on April 1, 2024. Shareholders on record as of March 2, 2024, will be eligible for this dividend, which represents an annualized yield of 0.3% and a payout ratio of 9.43%.
Research analysts remain optimistic about McKesson’s prospects, with thirteen analysts rating the stock as a Buy and four as Hold. The consensus price target is set at $960.93. Recent upgrades include Wells Fargo & Company, which raised its price target from $914.00 to $925.00, and TD Cowen, which increased its target from $1,000.00 to $1,012.00, both maintaining favorable ratings on the stock.
Founded in 1833 and headquartered in Irving, Texas, McKesson Corporation is a leading healthcare services and distribution company. It connects manufacturers, pharmacies, hospitals, and health systems to ensure the efficient movement of medicines and clinical supplies. Its core operations include pharmaceutical wholesale distribution, specialty pharmacy services, and the provision of medical-surgical supplies. McKesson continues to play a vital role in the healthcare ecosystem, adapting to the evolving needs of its clients and the market.
