American Century Companies Inc. Lowers Stake in McKesson Corporation $MCK

Key Points

• American Century Companies Inc. reduced its stake in McKesson Corporation by 77.1%, selling 39,819 shares during the first quarter and ending up with 11,823 shares valued at approximately $7.96 million.
• McKesson's recent earnings report showed a quarterly EPS of $8.26, falling short of analysts' expectations of $8.33, while revenue increased by 23.4% year-over-year.
• The company announced a quarterly dividend increase to $0.82 per share from the previous $0.71, representing a dividend yield of 0.5% and a payout ratio of 11.32%.

American Century Companies Inc. trimmed its stake in McKesson Corporation (NYSE:MCK - Free Report) by 77.1% during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 11,823 shares of the company's stock after selling 39,819 shares during the period. American Century Companies Inc.'s holdings in McKesson were worth $7,957,000 at the end of the most recent quarter.

A number of other hedge funds have also recently modified their holdings of MCK. GAMMA Investing LLC grew its position in shares of McKesson by 75,632.7% in the 1st quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock valued at $1,610,567,000 after buying an additional 2,389,992 shares during the last quarter. Nuveen LLC purchased a new position in shares of McKesson in the 1st quarter valued at $475,235,000. Farallon Capital Management LLC purchased a new position in shares of McKesson in the 4th quarter valued at $348,044,000. Boston Partners grew its position in shares of McKesson by 33.3% in 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 during the last quarter. Finally, Leigh Baldwin & CO. LLC acquired a new stake in McKesson during the 4th quarter worth $182,861,000. 85.07% of the stock is owned by hedge funds and other institutional investors.

McKesson Stock Up 0.7%

Shares of NYSE MCK traded up $4.68 during midday trading on Tuesday, hitting $691.32. The company had a trading volume of 755,994 shares, compared to its average volume of 938,827. McKesson Corporation has a twelve month low of $464.42 and a twelve month high of $737.89. The business has a 50-day simple moving average of $701.11 and a two-hundred day simple moving average of $689.23. The firm has a market capitalization of $85.99 billion, a price-to-earnings ratio of 27.56, a price-to-earnings-growth ratio of 1.37 and a beta of 0.51.

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

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd will be given a dividend of $0.82 per share. The ex-dividend date is Tuesday, September 2nd. This is an increase from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 dividend on an annualized basis and a yield of 0.5%. McKesson's dividend payout ratio (DPR) is presently 11.32%.

Analyst Ratings Changes

Several brokerages have issued reports on MCK. Cowen reissued a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. 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. Bank of America raised 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. Wall Street Zen downgraded shares of McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Finally, Evercore ISI raised 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. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $725.10.

Insider Transactions at McKesson

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of McKesson stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $663.67, for a total transaction of $218,347.43. Following the completion of the transaction, the chief accounting officer owned 657 shares in the company, valued at approximately $436,031.19. The trade was a 33.37% decrease in their ownership of the stock. The sale 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 McKesson stock in a transaction dated Friday, July 11th. The stock was sold at an average price of $708.09, for a total transaction of $13,716,411.39. Following the transaction, the chief executive officer owned 27,872 shares of the company's stock, valued at approximately $19,735,884.48. The trade was a 41.00% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 62,930 shares of company stock valued at $44,112,466. 0.08% of the stock is currently owned by company insiders.

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.