Allstate Corp Raises Position in McKesson Corporation $MCK

Key Points

• Allstate Corp increased its stake in McKesson Corporation by 23.5% to a total of 4,819 shares, valued at approximately $3.24 million, according to its latest SEC filing.
• McKesson announced a boosted quarterly dividend of $0.82 per share, up from $0.71, with the next payment scheduled for October 1st.
• After reporting quarterly earnings that missed analysts' expectations, McKesson's stock is currently trading down by 2.6%, alongside a consensus rating of "Moderate Buy" from analysts.

Allstate Corp lifted its position in McKesson Corporation (NYSE:MCK - Free Report) by 23.5% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 4,819 shares of the company's stock after buying an additional 916 shares during the period. Allstate Corp's holdings in McKesson were worth $3,243,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors also recently modified their holdings of MCK. GAMMA Investing LLC grew its holdings in shares of McKesson by 75,632.7% in the first quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock worth $1,610,567,000 after acquiring an additional 2,389,992 shares during the period. Nuveen LLC bought a new stake in shares of McKesson in the first quarter worth $475,235,000. Farallon Capital Management LLC bought a new stake in shares of McKesson in the fourth quarter worth $348,044,000. Wellington Management Group LLP grew its holdings in shares of McKesson by 4,559.6% in the first quarter. Wellington Management Group LLP now owns 427,703 shares of the company's stock worth $287,840,000 after acquiring an additional 418,524 shares during the period. Finally, Boston Partners grew its holdings in shares of McKesson by 33.3% in the first quarter. Boston Partners now owns 1,461,785 shares of the company's stock worth $984,927,000 after acquiring an additional 365,484 shares during the period. Institutional investors own 85.07% of the company's stock.

Insider Activity

In other news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the company's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $663.67, for a total transaction of $218,347.43. Following the transaction, the chief accounting officer owned 657 shares of the company's stock, valued at approximately $436,031.19. This represents a 33.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Brian S. Tyler sold 19,371 shares of the company's stock in a transaction that occurred on Friday, July 11th. The shares were sold at an average price of $708.09, for a total value of $13,716,411.39. Following the transaction, the chief executive officer directly owned 27,872 shares in the company, valued at approximately $19,735,884.48. This represents a 41.00% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 65,821 shares of company stock valued at $46,171,378. 0.08% of the stock is currently owned by insiders.

McKesson Price Performance

Shares of MCK stock traded down $0.85 during trading hours on Thursday, hitting $682.66. The stock had a trading volume of 164,516 shares, compared to its average volume of 888,462. McKesson Corporation has a one year low of $464.42 and a one year high of $737.89. The stock's 50-day moving average price is $704.08 and its two-hundred day moving average price is $686.28. The stock has a market capitalization of $84.91 billion, a price-to-earnings ratio of 27.25, a PEG ratio of 1.35 and a beta of 0.50.

McKesson (NYSE:MCK - Get Free Report) last issued 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 firm had revenue of $97.83 billion during the quarter, compared to the consensus estimate of $95.93 billion. During the same period last year, the firm posted $7.88 earnings per share. The company's revenue for the quarter was up 23.4% compared to the same quarter last year. As a group, equities 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 will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be paid a dividend of $0.82 per share. This is a positive change from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Tuesday, September 2nd. McKesson's payout ratio is currently 11.32%.

Analyst Ratings Changes

Several research firms recently weighed in on MCK. Evercore ISI lifted their target price on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. Morgan Stanley reiterated an "overweight" rating and set a $810.00 target price (up from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. Cowen reiterated a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. Bank of America lifted their target price on McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a research report on Friday, May 9th. Finally, Wells Fargo & Company lifted their target price on McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, McKesson currently 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.