Nuveen LLC Invests $475.24 Million in McKesson Corporation (NYSE:MCK)

Key Points

• Nuveen LLC has acquired 706,155 shares of McKesson Corporation (NYSE:MCK), valued at approximately $475 million, representing 0.56% of the company's total stock after the first quarter.
• Recent insider sales include EVP Leann B. Smith selling 341 shares and EVP Thomas L. Rodgers selling 2,891 shares, resulting in significant decreases of their respective positions.
• McKesson has increased its quarterly dividend from $0.71 to $0.82, with a dividend yield of 0.5% and an ex-dividend date set for September 2nd.

Nuveen LLC acquired a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 706,155 shares of the company's stock, valued at approximately $475,235,000. Nuveen LLC owned approximately 0.56% of McKesson at the end of the most recent quarter.

Other institutional investors also recently modified their holdings of the company. Brighton Jones LLC raised its position in shares of McKesson by 46.3% during the 4th quarter. Brighton Jones LLC now owns 2,523 shares of the company's stock valued at $1,438,000 after buying an additional 798 shares in the last quarter. Crux Wealth Advisors purchased a new position in McKesson in the 4th quarter worth $291,000. Sagespring Wealth Partners LLC bought a new stake in shares of McKesson in the 4th quarter valued at about $529,000. Advisors Capital Management LLC boosted its stake in shares of McKesson by 2.6% during the fourth quarter. Advisors Capital Management LLC now owns 45,959 shares of the company's stock valued at $26,193,000 after purchasing an additional 1,157 shares during the period. Finally, SageView Advisory Group LLC boosted its position in McKesson by 7.9% during the 4th quarter. SageView Advisory Group LLC now owns 1,028 shares of the company's stock valued at $586,000 after buying an additional 75 shares during the period. 85.07% of the stock is currently owned by institutional investors.

McKesson Trading Up 1.7%

NYSE:MCK traded up $11.36 during mid-day trading on Thursday, reaching $674.53. The company's stock had a trading volume of 667,349 shares, compared to its average volume of 895,797. The stock has a market cap of $83.90 billion, a P/E ratio of 26.90, a PEG ratio of 1.31 and a beta of 0.50. The firm's fifty day moving average price is $711.09 and its two-hundred day moving average price is $680.62. McKesson Corporation has a 12-month low of $464.42 and a 12-month high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported $8.26 earnings per share for the quarter, missing analysts' consensus estimates of $8.33 by ($0.07). McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The company had revenue of $97.83 billion for the quarter, compared to the consensus estimate of $95.93 billion. During the same quarter last year, the company earned $7.88 EPS. The firm's revenue for the quarter was up 23.4% on a year-over-year basis. Analysts predict that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be paid a $0.82 dividend. This is a boost from McKesson's previous quarterly dividend of $0.71. The ex-dividend date is Tuesday, September 2nd. This represents a $3.28 annualized dividend and a dividend yield of 0.5%. McKesson's dividend payout ratio (DPR) is currently 11.32%.

Insider Buying and Selling

In other McKesson news, EVP Thomas L. Rodgers sold 2,891 shares of McKesson stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $712.18, for a total transaction of $2,058,912.38. Following the transaction, the executive vice president owned 2,544 shares of the company's stock, valued at $1,811,785.92. The trade was a 53.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Britt J. Vitalone sold 6,336 shares of the firm's stock in a transaction on Thursday, May 22nd. The shares were sold at an average price of $717.30, for a total transaction of $4,544,812.80. Following the sale, the chief financial officer owned 14,760 shares in the company, valued at $10,587,348. The trade was a 30.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 52,817 shares of company stock valued at $37,461,210 in the last 90 days. 0.08% of the stock is owned by insiders.

Analyst Ratings Changes

MCK has been the subject of a number of recent analyst reports. Wells Fargo & Company set a $772.00 price target on McKesson and gave the company an "equal weight" rating in a research report on Wednesday. Morgan Stanley reissued an "overweight" rating and set a $810.00 price objective (up from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. Cowen restated a "buy" rating on shares of McKesson in a report on Thursday, August 7th. Bank of America raised their target price on McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a research note on Friday, May 9th. Finally, UBS Group increased their price objective on McKesson from $708.00 to $805.00 and gave the stock a "buy" rating in a report on Tuesday, April 29th. Three analysts have rated the stock with a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $719.27.

McKesson Company Profile

McKesson Corporation provides healthcare services in the United States and internationally. It operates through four segments: U.S. Pharmaceutical, Prescription Technology Solutions (RxTS), Medical-Surgical Solutions, and International. The U.S. Pharmaceutical segment distributes branded, generic, specialty, biosimilar and over-the-counter pharmaceutical drugs, and other healthcare-related products.