Central Pacific Bank Trust Division has significantly increased its investment in McKesson Corporation (NYSE:MCK), raising its holdings by 54.4% in the third quarter, as detailed in a recent report to the Securities & Exchange Commission. After acquiring an additional 1,378 shares during the quarter, the institutional investor now owns a total of 3,913 shares, valued at approximately $3,023,000.
Several other institutional investors have also recently made moves with McKesson shares. Norges Bank established a new stake worth around $1.35 billion in the second quarter, while AllianceBernstein L.P. enhanced its position by 150.4%, accumulating 2,268,015 shares valued at $1.66 billion. Similarly, Arrowstreet Capital Limited Partnership increased its stake by 56.4%, bringing its total to 1,236,536 shares worth about $906 million. Wellington Management Group LLP vastly expanded its holdings by 4,559.6% to own 427,703 shares at a value of nearly $288 million. Voya Investment Management LLC also raised its stake by 92.3% during the same period, now holding 650,851 shares valued at approximately $438 million. Collectively, institutional investors and hedge funds own about 85.07% of McKesson’s stock.
In insider trading news, Chief Accounting Officer Napoleon B. Rutledge, Jr. sold 329 shares on November 7 for $861.63 each, totaling over $283,000. This sale resulted in a reduction of his holdings by 50.08%, leaving him with 328 shares valued at around $282,615.
Recently, McKesson’s stock opened at $823.15, demonstrating strong performance metrics. The company’s 50-day moving average is $821.84, while the 200-day moving average sits at $749.35. Over the past year, McKesson shares have seen a low of $558.13 and a high of $895.58. The firm boasts a market capitalization of $101.60 billion and possesses a P/E ratio of 25.62, along with a P/E/G ratio of 1.34, indicating a stable growth outlook.
In its latest quarterly earnings report released on November 5, McKesson reported earnings per share (EPS) of $9.86, exceeding analysts’ expectations of $8.84. Revenue for the quarter amounted to $103.15 billion, slightly below analyst predictions of $103.80 billion; however, it represented a 10.2% year-over-year growth compared to the same quarter last year, when it earned $7.07 EPS.
McKesson has also declared a quarterly dividend of $0.82, set to be distributed on January 2, 2024, to shareholders on record as of December 1. This equates to an annual dividend of $3.28, reflecting a yield of 0.4% and a payout ratio of 10.21%.
Looking ahead, analysts have been bullish on McKesson, with Morgan Stanley raising their target price to $916 from $857 and maintaining an “overweight” rating. Other notable analysts have expressed similar sentiment, with twelve recommending a buy, two giving a strong buy rating, and four suggesting hold options, resulting in a consensus “Moderate Buy” rating and an average price target of $892.86.
Overall, McKesson continues to show strong institutional support and a solid growth trajectory in the healthcare sector, indicating a potentially promising investment for stakeholders in the industry.