Lazari Capital Management Inc. Invests $443,000 in McKesson Co. (NYSE:MCK)

Lazari Capital Management Inc. has made a significant investment in McKesson Co. (NYSE:MCK) during the fourth quarter. According to their recent filing with the Securities and Exchange Commission (SEC), the firm acquired 777 shares, valued at approximately $443,000.

Institutional Investor Activity

Other institutional investors have also been active with McKesson shares. For instance, Synergy Asset Management LLC purchased a new stake valued at about $32,000 in the fourth quarter. Additionally, MidAtlantic Capital Management Inc. acquired shares worth around $29,000 during the third quarter. Another firm, Crews Bank & Trust, also bought shares valued at roughly $33,000 in the fourth quarter. Meanwhile, Wolff Wiese Magana LLC saw a massive increase in its stake by 742.9% during the third quarter, now holding 59 shares valued at $29,000 after acquiring an additional 52 shares. RPg Family Wealth Advisory LLC also entered the scene with a stake worth about $31,000 during the third quarter. In total, it is reported that about 85.07% of McKesson’s stock is owned by institutional investors.

Insider Transactions at McKesson

Additionally, there have been movements in insider ownership. On December 9, EVP Leann B. Smith sold 579 shares of McKesson’s stock at an average price of $602.81, totaling approximately $349,026.99. Following this sale, Smith retained 1,443 shares, currently valued at $869,854.83. This trade indicated a decrease of 28.64% in Smith's ownership of McKesson stock. The details of this transaction were disclosed in a filing with the SEC, highlighting that company insiders own about 0.11% of the stock.

Stock Performance Overview

As for McKesson’s stock market performance, shares opened at $594.85. The company holds a market capitalization of $75.51 billion, with a price-to-earnings ratio of 30.81. The stock has fluctuated between a 52-week low of $464.42 and a high of $637.51. Its 50-day moving average stands at $590.79, while the 200-day moving average is at $561.94.

Earnings Report Highlights

On November 6, McKesson reported its quarterly earnings, delivering an earnings per share (EPS) of $7.07. This figure exceeded analysts’ expectations of $6.88 by $0.19. The company reported total revenue of $93.65 billion for the quarter, outperforming the forecast of $89.33 billion. However, McKesson had a negative return on equity of 207.50% and a net margin of 0.77% for the same period. This quarter’s revenue grew 21.3% year-over-year, showing a remarkable improvement from last year’s EPS of $6.23. Analysts expect McKesson to post a forward EPS of 32.72 for the current fiscal year.

Dividend News

McKesson has also announced a quarterly dividend, scheduled to be paid on April 1. Shareholders on record as of March 3 will receive a dividend payment of $0.71, translating to an annualized dividend of $2.84. This yields a return of 0.48% and denotes a dividend payout ratio (DPR) of 14.71%.

Analytical Insights

Recent research notes on McKesson highlight varying price targets. Mizuho initiated coverage with a ‘neutral’ rating and a target price of $630. Evercore ISI has increased their target from $560 to $680, assigning an ‘outperform’ rating. Wells Fargo also raised its price target from $535 to $641 while maintaining a rating of ‘equal weight’. Baird R W upgraded its assessment of McKesson from 'hold' to 'strong buy'. Lastly, Morgan Stanley adjusted its target from $612 to $642, designating a rating of ‘overweight’. Overall, while two analysts have rated the stock as 'hold', fourteen maintain a 'buy' rating, with one strong buy rating assigned, contributing to an average consensus price target of $646.14.

About McKesson

McKesson Corporation operates as a significant provider of healthcare services both in the U.S. and globally. It functions through four major segments: U.S. Pharmaceutical, Prescription Technology Solutions, Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment is responsible for receiving and distributing various types of pharmaceutical drugs, including branded, generic, specialty, and biosimilar products.

Investment, Healthcare, Stocks