Crossmark Global Holdings Inc. Increases Stake in McKesson Co.

Crossmark Global Holdings Inc. has significantly expanded its investment in McKesson Co. (NYSE:MCK) during the third quarter, according to its latest 13F filing with the Securities and Exchange Commission (SEC). Specifically, the firm increased its holdings by an impressive 69.2%, acquiring 14,044 additional shares. This brings their total ownership to 34,353 shares, valued at approximately $16,985,000.

Changes in Institutional Positions

In the same period, various other hedge funds and institutional investors have also adjusted their positions in McKesson. For instance, Swedbank AB made a notable entry into McKesson shares in the first quarter, with an investment worth around $669.3 million. Additionally, International Assets Investment Management LLC increased its stake dramatically by 1,020.2% in the third quarter, now holding 806,878 shares worth about $398.9 million after adding 734,849 shares. Similarly, Bessemer Group Inc. saw a massive increase of 3,621.7% in its position in the first quarter, owning 349,395 shares valued at $187.6 million after a purchase of 340,007 shares. Another newcomer, Bristol Gate Capital Partners Inc., invested approximately $97.5 million in McKesson during the first quarter. Finally, Assenagon Asset Management S.A. boosted its stake by 581.0%, owning 151,240 shares currently worth around $74.8 million, following an acquisition of 129,031 shares in the last quarter. Collectively, institutional investors and hedge funds hold an impressive 85.07% of McKesson's stock.

Insider Activity at McKesson

In a related note, the CEO of McKesson, Brian S. Tyler, sold 3,753 shares on September 5th, fetching an average price of $561.10 per share. The total value of this transaction was approximately $2.1 million. After this sale, the CEO retains ownership of 78,586 shares in the company, amounting to a value of about $44.1 million. Insider ownership stands at a mere 0.11% of McKesson's stock.

Stock Performance and Earnings

On Friday, McKesson shares performed well, rising by 0.9% or $5.49, reaching a price of $613.00. The trading volume was notably high at 1,270,690 shares, well above the average of 846,233 shares. McKesson currently boasts a market capitalization of $79.49 billion, a P/E ratio of 31.75, and a P/E/G ratio of 1.29. It has a beta of 0.44 and its fifty-day moving average is set at $513.03, while the 200-day moving average is at $551.60. Over the past year, McKesson's stock has seen a low of $431.35 and a high of $637.51.

In its last earnings report released on November 6th, McKesson posted results that exceeded expectations, with earnings per share (EPS) of $7.07, surpassing the forecast of $6.88 by $0.19. The company reported revenue of $93.65 billion, above analyst predictions of $89.33 billion. However, McKesson recorded a negative return on equity of 243.82% and a net margin of 0.77%. This represents a year-over-year revenue growth of 21.3%. Analysts anticipate McKesson will report an EPS of 31.92 for the current year.

Quarterly Dividend Announcement

Moreover, McKesson recently declared its quarterly dividend, which is set to be distributed on January 2nd to shareholders of record as of December 2nd. The dividend amount is $0.71, translating to an annualized dividend of $2.84 and a yield of 0.46%. The ex-dividend date is also December 2nd. The company’s current dividend payout ratio stands at 14.71%.

Analyst Ratings and Future Expectations

McKesson has been the focus of numerous research analyst reports, with StockNews.com upgrading McKesson from a "hold" to a "buy" rating. Meanwhile, Wells Fargo lowered its target price for McKesson from $576.00 to $535.00, maintaining an "equal weight" rating. Citigroup also revised its target price from $670.00 to $630.00, reinforcing their "buy" rating. Evercore ISI raised their target price to $680.00, giving McKesson an "outperform" rating. Most recently, Robert W. Baird upgraded McKesson from a "neutral" to an "outperform" rating, increasing its price objective from $531.00 to $688.00. Overall, two analysts have given McKesson a hold rating, while fourteen have rated it a buy with one strong buy rating. The consensus opinion is classified as a "Moderate Buy" with an average target price of $625.64.

About McKesson

McKesson Corporation is a prominent player in the healthcare services industry, providing a range of services both domestically and internationally. It operates through several segments, including U.S. Pharmaceutical, Prescription Technology Solutions, Medical-Surgical Solutions, and International. Its U.S. Pharmaceutical segment specializes in the distribution of branded, generic, specialty, biosimilar, and over-the-counter drugs alongside other healthcare products.

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