McKesson Corporation (NYSE:MCK) has reported that its Executive Vice President and Chief Financial Officer, Britt J. Vitalone, sold 12,752 shares of company stock on May 23, 2024, for a total value of $7,116,763 at an average price of $558.09 per share. The transaction was made public in a recent filing with the Securities and Exchange Commission.
The sale was executed under a pre-arranged trading plan, known as a Rule 10b5-1(c) arrangement, which allows company insiders to sell shares over a predetermined period of time. This plan was set up on November 21, 2023, indicating that the sale was planned well in advance and not based on any immediate knowledge of internal corporate matters.
In addition to the sale, the SEC filing disclosed that Vitalone acquired 1,475 shares of McKesson stock at no cost on the same day. This transaction is part of the vesting of Restricted Stock Units (RSUs), which occurred as one-third of the total RSUs granted to the executive. According to the filing, these RSUs are set to vest in thirds over a period ending in 2026.
Furthermore, the filing showed a withholding of 581 shares valued at $324,215 to cover taxes related to the vesting of RSUs. This is a common practice where companies withhold a portion of vesting shares to cover the executive's tax obligations.
The transactions have resulted in Vitalone holding 14,928.377 shares of McKesson directly after the reported activities. Additionally, the executive has an indirect ownership of 548.4599 shares through the McKesson Corporation 401(k) Retirement Savings Plan.
McKesson Corporation, a leader in the wholesale pharmaceuticals industry, has not made any official statement regarding the transactions. The reported trades provide a glimpse into the financial activities of one of its top executives and are a routine disclosure required by the SEC for public company insiders.
InvestingPro Insights
In light of the recent executive transactions at McKesson Corporation (NYSE:MCK), investors may find additional context from real-time data and insights beneficial. According to InvestingPro, McKesson's management has been actively engaging in share buybacks, a move that often signals confidence in the company's future performance and a commitment to delivering shareholder value. Additionally, McKesson has a notable track record of raising its dividend for 16 consecutive years, underscoring its financial stability and reliability as an income-generating investment.
InvestingPro Data further reveals that McKesson has a market capitalization of $71.38 billion, reflecting its significant presence in the healthcare industry. The company's price-to-earnings (P/E) ratio stands at 24.37, with an adjusted P/E ratio for the last twelve months as of Q4 2024 at 20.13. This indicates that the company is trading at a relatively reasonable valuation compared to its earnings. Moreover, McKesson has demonstrated solid revenue growth, with an 11.65% increase over the last twelve months as of Q4 2024, suggesting a strong business performance.
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