On September 6, 2023, Brian Tyler, the CEO of McKesson Corp (MCK, Financial), sold 3,938 shares of the company. This move is part of a larger trend of insider selling at McKesson Corp, as we will explore in this article.
Who is Brian Tyler?
Brian Tyler is the CEO of McKesson Corp, a global leader in healthcare supply chain management solutions, retail pharmacy, community oncology and specialty care, and healthcare information technology. Tyler has been with the company for over two decades, serving in various leadership roles before becoming CEO. His deep understanding of the company and the industry makes his stock transactions particularly noteworthy.
About McKesson Corp
McKesson Corp is a Fortune 500 company that provides health care 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 Sell Analysis
Over the past year, Brian Tyler has sold a total of 52,123 shares and purchased 0 shares. This recent sale of 3,938 shares is part of a larger trend of insider selling at McKesson Corp. In fact, there have been 25 insider sells and 0 insider buys over the past year.
The insider's selling activities can sometimes be an indicator of the company's future performance. However, it's important to note that insider selling can occur for a variety of reasons, and it doesn't necessarily mean that the insider believes the stock's price will decline.
McKesson Corp's Stock Price and Valuation
On the day of the insider's recent sale, shares of McKesson Corp were trading at $407, giving the company a market cap of $56.71 billion. The price-earnings ratio is 15.68, which is lower than the industry median of 16.62 and also lower than the company’s historical median price-earnings ratio.
With a price of $407 and a GuruFocus Value of $347.62, McKesson Corp has a price-to-GF-Value ratio of 1.17. This suggests that the stock is modestly overvalued based on its GF Value.
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 company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent sale of McKesson Corp shares, along with the company's current valuation, suggests that potential investors should exercise caution. While the company's fundamentals remain strong, the stock appears to be modestly overvalued at the current price.
