Aberdeen Group plc Grows Position in McKesson Corporation $MCK

Key Points

• Aberdeen Group plc increased its stake in McKesson Corporation by 2.4% during the second quarter, owning 69,971 shares valued at $51.27 million.
• Several analysts have upgraded McKesson's stock, with target prices ranging from $816 to $850 and an average rating of "Moderate Buy."
• McKesson recently announced a quarterly dividend increase from $0.71 to $0.82 per share, representing an annual yield of 0.4%.

Aberdeen Group plc lifted its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 2.4% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 69,971 shares of the company's stock after buying an additional 1,633 shares during the period. Aberdeen Group plc owned approximately 0.06% of McKesson worth $51,273,000 at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of MCK. MassMutual Private Wealth & Trust FSB lifted its holdings in McKesson by 1.6% in the second quarter. MassMutual Private Wealth & Trust FSB now owns 863 shares of the company's stock valued at $632,000 after acquiring an additional 14 shares during the period. CVA Family Office LLC lifted its holdings in McKesson by 6.0% in the first quarter. CVA Family Office LLC now owns 265 shares of the company's stock valued at $178,000 after acquiring an additional 15 shares during the period. Palisade Asset Management LLC lifted its holdings in McKesson by 2.1% in the first quarter. Palisade Asset Management LLC now owns 715 shares of the company's stock valued at $481,000 after acquiring an additional 15 shares during the period. SteelPeak Wealth LLC lifted its holdings in McKesson by 0.5% in the first quarter. SteelPeak Wealth LLC now owns 2,771 shares of the company's stock valued at $1,867,000 after acquiring an additional 15 shares during the period. Finally, Keystone Financial Services lifted its holdings in McKesson by 1.2% in the first quarter. Keystone Financial Services now owns 1,404 shares of the company's stock valued at $945,000 after acquiring an additional 17 shares during the period. 85.07% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on MCK shares. Wells Fargo & Company increased their target price on McKesson from $772.00 to $816.00 and gave the company an "equal weight" rating in a report on Wednesday, September 24th. Bank of America increased their target price on McKesson from $800.00 to $850.00 and gave the company a "buy" rating in a report on Wednesday, September 24th. Leerink Partners raised their price objective on McKesson from $785.00 to $850.00 and gave the stock an "outperform" rating in a research note on Wednesday, September 24th. Wall Street Zen raised McKesson from a "hold" rating to a "buy" rating in a research note on Sunday, September 28th. Finally, Mizuho raised their price objective on McKesson from $750.00 to $770.00 and gave the stock a "neutral" rating in a research note on Wednesday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $829.08.

McKesson Trading Up 0.8%

NYSE:MCK opened at $763.89 on Friday. McKesson Corporation has a 12-month low of $492.39 and a 12-month high of $776.14. The stock has a 50-day moving average price of $707.48 and a 200 day moving average price of $706.39. The stock has a market capitalization of $95.01 billion, a P/E ratio of 30.46, a P/E/G ratio of 1.38 and a beta of 0.52.

McKesson (NYSE:MCK - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $8.33 by ($0.07). McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.The business had revenue of $97.83 billion for the quarter, compared to analysts' expectations of $95.93 billion. During the same quarter in the prior year, the business posted $7.88 EPS. The business's revenue for the quarter was up 23.4% compared to the same quarter last year. On average, research analysts predict that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd were given a dividend of $0.82 per share. This is an increase from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 annualized dividend and a dividend yield of 0.4%. The ex-dividend date was Tuesday, September 2nd. McKesson's dividend payout ratio (DPR) is 13.08%.

Insider Activity

In related news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $663.67, for a total transaction of $218,347.43. Following the completion of the sale, the chief accounting officer owned 657 shares in the company, valued at approximately $436,031.19. This trade represents a 33.37% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Brian S. Tyler sold 11,930 shares of the stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $705.63, for a total value of $8,418,165.90. Following the sale, the chief executive officer owned 4,012 shares of the company's stock, valued at $2,830,987.56. This represents a 74.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 24,189 shares of company stock valued at $16,722,190 in the last quarter. 0.08% of the stock is currently owned by company insiders.

About McKesson

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.

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