On November 3, 2023, Leann Smith, the Executive Vice President and Chief Human Resources Officer of McKesson Corp (NYSE:MCK), sold 660 shares of the company. This move is part of a broader trend of insider selling at McKesson Corp over the past year.
McKesson Corp is a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology. The company partners with pharmaceutical manufacturers, providers, pharmacies, governments, and other organizations in healthcare to help provide the right medicines, medical products, and healthcare services to the right patients at the right time, safely and cost-effectively.
Over the past year, the insider has sold a total of 660 shares and purchased 0 shares. This trend of selling by the insider is mirrored in the broader insider transaction history of McKesson Corp, which shows 0 insider buys and 26 insider sells over the past year.
On the day of the insider's recent sale, shares of McKesson Corp were trading for $461.26 apiece, giving the stock a market cap of $61.41 billion. The price-earnings ratio of 17.21 is slightly higher than the industry median of 17.08, but lower than the companys historical median price-earnings ratio.
The GuruFocus Value of McKesson Corp is $374.14, resulting in a price-to-GF-Value ratio of 1.23. This suggests that the stock is modestly overvalued.
The GF Value is an intrinsic value estimate developed by GuruFocus. It is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the companys past returns and growth, and future estimates of business performance from Morningstar analysts.
The recent sale by the insider, along with the broader trend of insider selling at McKesson Corp, could be a signal to investors to exercise caution. While the company's fundamentals remain strong, the stock's current valuation suggests it may be modestly overvalued. As always, investors should conduct their own due diligence and consider multiple factors before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.