On June 6, 2023, Thomas Rodgers, Executive Vice President, Chief Strategy and Business Development Officer of McKesson Corp, sold 645 shares of the company's stock. This recent transaction comes as part of a series of insider sales over the past year, with Rodgers having sold a total of 8,881 shares and purchased none. The sale took place at a price of $395.7 per share, giving the stock a market cap of $52,155.342 billion.
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.
Insider Trends
Over the past year, there have been no insider buys for McKesson Corp, while there have been 20 insider sells. This trend can be visualized in the following insider trend image:
It is important to analyze insider buy/sell transactions and their relationship with the stock price. Insider selling can sometimes indicate a lack of confidence in the company's future prospects or a belief that the stock is overvalued. However, it is also possible that insiders are simply diversifying their investment portfolios or selling shares for personal reasons. In the case of McKesson Corp, the consistent insider selling over the past year may raise some concerns for investors, but it is essential to consider other factors such as the company's financial performance and overall market conditions before drawing any conclusions.
Valuation
McKesson Corp's shares were trading at $395.7 on the day of Thomas Rodgers's recent sale. The stock has a price-earnings ratio of 15.35, which is lower than the industry median of 16.77 and lower than the company's historical median price-earnings ratio. This suggests that the stock may be undervalued compared to its peers and its historical trading levels.
However, when considering the GuruFocus Value, the stock appears to be significantly overvalued. With a price of $395.7 and a GuruFocus Value of $276.00, McKesson Corp has a price-to-GF-Value ratio of 1.43, indicating that the stock is significantly overvalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that takes into account the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, while the recent insider selling by Thomas Rodgers may raise some concerns for investors, it is essential to consider other factors such as the company's financial performance, overall market conditions, and valuation metrics before making any investment decisions. Based on the current price-earnings ratio and GF Value, McKesson Corp's stock appears to be overvalued, which may warrant caution for potential investors. However, it is crucial to conduct further research and analysis to determine if this is an appropriate time to invest in the company.
