In a significant move reflecting evolving market dynamics, Foster & Motley Inc. substantially increased its stake in Cencora, Inc. (NYSE:COR) during the first quarter. This strategic acquisition saw the institutional investor boost its holdings by 3.8%, adding an additional 303 shares to its portfolio, bringing their total ownership to 8,210 shares. This increased position underscores a notable vote of confidence in the pharmaceutical distribution giant, with the investment valued at $2,283,000 as per their most recent 13F filing with the SEC.
Beyond Foster & Motley Inc., the landscape of institutional investing in Cencora has seen considerable shifts. Cornerstone Planning Group LLC, for instance, dramatically amplified its holdings by an impressive 106.7% in the same quarter, now possessing 93 shares valued at $26,000. New positions were also established by firms like Hoey Investments Inc., Banque Transatlantique SA, Vermillion Wealth Management Inc., and the University of Texas Texas AM Investment Management Co., collectively demonstrating a growing interest in Cencora Inc. stock.
The collective influence of these large-scale financial entities is profound, with hedge funds and other institutional investors commanding a substantial 97.52% of Cencora’s outstanding stock. Such a high percentage indicates strong institutional backing and often suggests a degree of stability and long-term interest in the company’s performance and strategic direction within the stock market.
Adding to the company’s financial narrative, Cencora recently declared a quarterly dividend of $0.55 per share, translating to an annualized dividend of $2.20 and a yield of 0.75%. This dividend news, paid on Monday, June 2nd, with an ex-dividend date of Friday, May 16th, highlights Cencora’s commitment to returning value to shareholders. The company’s dividend payout ratio (DPR) stands at 25.52%, reflecting a balanced approach to reinvestment and shareholder returns.
However, recent insider trading activity reveals a contrasting trend. The CEO of Cencora executed a significant sale of 4,968 shares on Friday, July 18th, at an average price of $294.11, totaling over $1.46 million. This transaction resulted in a 10.50% reduction in the CEO’s personal ownership, with their remaining stake valued at over $12.45 million, as detailed in the SEC filings.
Further insider sales include the Chairman’s transaction on Tuesday, July 22nd, offloading 14,578 shares at an average price of $292.67, amounting to more than $4.26 million. This sale represented a 4.49% decrease in the Chairman’s position. In total, insiders have divested 34,125 shares worth approximately $9.99 million over the past three months, though they still collectively hold 10.80% of the pharmaceutical stocks company.
Market analysts have closely watched Cencora, with several research firms issuing updated reports and price targets. Morgan Stanley, UBS Group, Wells Fargo & Company, Citigroup, and Jefferies Financial Group have all provided assessments, ranging from “hold” to “buy” ratings and adjusting price objectives upwards. The consensus among these thirteen equities research analysts is a “Moderate Buy” rating for Cencora, with an average price target set at $309.83, suggesting continued positive outlook for the stock’s future performance and financial analysis.
Cencora, Inc. itself operates as a vital player in the healthcare supply chain, primarily engaged in sourcing and distributing pharmaceutical products. Its U.S. Healthcare Solutions segment offers a comprehensive suite of services, including pharmaceutical distribution to various healthcare providers, pharmacy management, supply management software, clinical trial support, and data analytics. Furthermore, the company extends its reach to the animal health market, providing a wide array of products and services, solidifying its diverse operational footprint.
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