AlphaQuest LLC Acquires 1,306 Shares of McKesson Corporation $MCK

Key Points

• AlphaQuest LLC increased its stake in McKesson Corporation by 103.7%, owning 2,566 shares valued at $1,727,000 as of the latest SEC filing.
• Several institutional investors, including Capital A Wealth Management and CBIZ Investment Advisory Services, have also made significant changes to their holdings in McKesson during the first quarter.
• McKesson announced a quarterly dividend increase to $0.82, reflecting a commitment to returning value to shareholders, with a payout ratio currently at 11.32%.

AlphaQuest LLC raised its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 103.7% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 2,566 shares of the company's stock after purchasing an additional 1,306 shares during the quarter. AlphaQuest LLC's holdings in McKesson were worth $1,727,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also recently modified their holdings of MCK. GAMMA Investing LLC boosted its holdings in McKesson by 75,632.7% in the 1st quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock worth $1,610,567,000 after buying an additional 2,389,992 shares during the period. Northern Trust Corp lifted its holdings in McKesson by 0.7% during the 1st quarter. Northern Trust Corp now owns 1,542,382 shares of the company's stock worth $1,038,008,000 after purchasing an additional 10,179 shares in the last quarter. Boston Partners grew its holdings in McKesson by 33.3% during the 1st quarter. Boston Partners now owns 1,461,785 shares of the company's stock valued at $984,927,000 after buying an additional 365,484 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of McKesson by 9.1% during the first quarter. Price T Rowe Associates Inc. MD now owns 1,290,116 shares of the company's stock valued at $868,237,000 after buying an additional 107,638 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of McKesson by 9.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,103,050 shares of the company's stock worth $628,639,000 after buying an additional 95,806 shares in the last quarter. Hedge funds and other institutional investors own 85.07% of the company's stock.

Analyst Ratings Changes

MCK has been the topic of a number of analyst reports. Wall Street Zen lowered shares of McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Evercore ISI upped their price target on shares of McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a report on Wednesday, July 9th. Cowen reissued a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. Wells Fargo & Company upped their target price on McKesson from $766.00 to $772.00 and gave the stock an "equal weight" rating in a research note on Wednesday, August 13th. Finally, Morgan Stanley reiterated an "overweight" rating and set a $810.00 price target (up previously from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $725.10.

Insider Buying and Selling

In related news, EVP Thomas L. Rodgers sold 2,891 shares of McKesson stock in a transaction on Friday, May 30th. The shares were sold at an average price of $712.18, for a total value of $2,058,912.38. Following the sale, the executive vice president owned 2,544 shares in the company, valued at $1,811,785.92. The trade was a 53.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Brian S. Tyler sold 11,930 shares of the company's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the completion of the transaction, the chief executive officer owned 4,012 shares of the company's stock, valued at $2,830,987.56. This trade represents a 74.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 65,821 shares of company stock valued at $46,171,378 over the last quarter. 0.08% of the stock is owned by company insiders.

McKesson Stock Up 0.4%

Shares of McKesson stock traded up $2.94 on Wednesday, hitting $683.46. The stock had a trading volume of 1,031,883 shares, compared to its average volume of 890,176. McKesson Corporation has a one year low of $464.42 and a one year high of $737.89. The stock's 50-day simple moving average is $705.00 and its two-hundred day simple moving average is $686.29. The stock has a market cap of $85.01 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 announced its quarterly earnings results 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 firm had revenue of $97.83 billion for the quarter, compared to analysts' expectations of $95.93 billion. McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The company's quarterly revenue was up 23.4% on a year-over-year basis. During the same period in the previous year, the company earned $7.88 EPS. As a group, equities analysts predict that McKesson Corporation will post 32.77 EPS for the current fiscal year.

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be issued a dividend of $0.82 per share. This is a boost 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 is Tuesday, September 2nd. McKesson's dividend payout ratio is currently 11.32%.

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.