8 Knots Management LLC Decreases Stock Holdings in McKesson Corporation $MCK

Key Points

• 8 Knots Management LLC reduced its stake in McKesson Corporation by 52.1%, selling 51,692 shares and now holds 47,446 shares, making it the firm's 10th largest holding.
• McKesson's quarterly earnings report showed $8.26 EPS, below analysts' expectations, but revenue increased by 23.4% year-over-year to $97.83 billion.
• The company announced an increased quarterly dividend of $0.82, effective October 1st, which represents a 0.5% yield and a boost from the previous dividend of $0.71.

8 Knots Management LLC lowered its position in shares of McKesson Corporation (NYSE:MCK - Free Report) by 52.1% in the first quarter, according to the company in its most recent disclosure with the SEC. The firm owned 47,446 shares of the company's stock after selling 51,692 shares during the quarter. McKesson accounts for about 4.0% of 8 Knots Management LLC's investment portfolio, making the stock its 10th biggest holding. 8 Knots Management LLC's holdings in McKesson were worth $31,931,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently bought and sold shares of MCK. Capital A Wealth Management LLC acquired a new position in McKesson during the fourth quarter valued at approximately $26,000. Bank of Jackson Hole Trust boosted its holdings in shares of McKesson by 64.3% in the first quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock valued at $29,000 after buying an additional 18 shares during the period. CBIZ Investment Advisory Services LLC boosted its holdings in shares of McKesson by 1,366.7% in the first quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after buying an additional 41 shares during the period. Saudi Central Bank acquired a new position in shares of McKesson in the first quarter valued at approximately $34,000. Finally, Pandora Wealth Inc. acquired a new position in shares of McKesson in the first quarter valued at approximately $40,000. Institutional investors and hedge funds own 85.07% of the company's stock.

McKesson Stock Down 0.6%

Shares of MCK traded down $4.42 during trading hours on Friday, hitting $687.03. The company had a trading volume of 472,767 shares, compared to its average volume of 808,316. The firm has a market cap of $85.45 billion, a price-to-earnings ratio of 27.39, a PEG ratio of 1.37 and a beta of 0.51. The business has a fifty day moving average of $699.12 and a 200-day moving average of $690.52. 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 the consensus estimate of $8.33 by ($0.07). The company had revenue of $97.83 billion during the quarter, compared to the consensus estimate of $95.93 billion. McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. McKesson's revenue for the quarter was up 23.4% compared to the same quarter last year. During the same period in the previous year, the company earned $7.88 earnings per share. On average, equities analysts expect that McKesson Corporation will post 32.77 EPS for the current fiscal year.

McKesson Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be paid a $0.82 dividend. This represents a $3.28 annualized dividend and a dividend yield of 0.5%. This is a boost from McKesson's previous quarterly dividend of $0.71. The ex-dividend date is Tuesday, September 2nd. McKesson's dividend payout ratio is currently 13.08%.

Insider Activity

In related news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the company's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $663.67, for a total value of $218,347.43. Following the transaction, the chief accounting officer directly owned 657 shares in the company, valued at approximately $436,031.19. This represents a 33.37% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Brian S. Tyler sold 19,371 shares of the company's stock in a transaction dated Friday, July 11th. The shares were sold at an average price of $708.09, for a total transaction of $13,716,411.39. Following the completion of the transaction, the chief executive officer owned 27,872 shares in the company, valued at $19,735,884.48. This trade represents a 41.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 43,560 shares of company stock worth $30,438,602 over the last 90 days. 0.08% of the stock is currently owned by corporate insiders.

Analyst Ratings Changes

MCK has been the topic of a number of research reports. Cowen reissued a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. Evercore ISI boosted their price objective on shares of McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 9th. Wall Street Zen lowered shares of McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Bank of America boosted their price objective on shares of McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. Finally, Morgan Stanley reissued an "overweight" rating and issued a $810.00 price objective (up previously from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $725.10.

McKesson 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.