Ascent Group LLC Has $2.76 Million Holdings in McKesson Corporation $MCK

Key Points

• Ascent Group LLC increased its stakes in McKesson Corporation by 37.9% during the first quarter, owning a total of 4,099 shares valued at approximately $2.76 million.
• Other hedge funds also boosted their holdings, with GAMMA Investing LLC significantly increasing its shares by a staggering 75,632.7% in the same period.
• McKesson recently declared a quarterly dividend increase to $0.82 per share, set to be paid on October 1st, reflecting an annualized yield of 0.5%.

Ascent Group LLC boosted its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 37.9% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 4,099 shares of the company's stock after acquiring an additional 1,127 shares during the quarter. Ascent Group LLC's holdings in McKesson were worth $2,759,000 at the end of the most recent quarter.

A number of other institutional investors also recently added to or reduced their stakes in the business. Coppell Advisory Solutions LLC grew its position in McKesson by 1,943.6% in the 1st quarter. Coppell Advisory Solutions LLC now owns 6,744 shares of the company's stock valued at $4,539,000 after buying an additional 6,414 shares in the last quarter. United Services Automobile Association bought a new position in shares of McKesson in the first quarter valued at approximately $2,014,000. Arete Wealth Advisors LLC boosted its holdings in shares of McKesson by 83.5% in the first quarter. Arete Wealth Advisors LLC now owns 2,733 shares of the company's stock valued at $1,839,000 after acquiring an additional 1,244 shares in the last quarter. Caxton Associates LLP acquired a new position in shares of McKesson during the first quarter valued at approximately $233,000. Finally, Fred Alger Management LLC raised its holdings in McKesson by 1,131.7% during the first quarter. Fred Alger Management LLC now owns 38,072 shares of the company's stock worth $25,631,000 after purchasing an additional 34,981 shares in the last quarter. Institutional investors and hedge funds own 85.07% of the company's stock.

Insiders Place Their Bets

In related news, CEO Brian S. Tyler sold 11,930 shares of McKesson stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $705.63, for a total value of $8,418,165.90. Following the transaction, the chief executive officer owned 4,012 shares in the company, valued at $2,830,987.56. This trade represents a 74.83% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, 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 transaction of $218,347.43. Following the sale, the chief accounting officer owned 657 shares of the company's stock, valued at $436,031.19. This trade represents a 33.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 43,560 shares of company stock valued at $30,438,602 over the last 90 days. 0.08% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

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

McKesson Price Performance

Shares of MCK stock traded down $8.48 on Friday, hitting $711.32. The company's stock had a trading volume of 522,385 shares, compared to its average volume of 704,488. The stock has a market capitalization of $88.48 billion, a price-to-earnings ratio of 28.36, a P/E/G ratio of 1.43 and a beta of 0.51. McKesson Corporation has a fifty-two week low of $464.42 and a fifty-two week high of $737.89. The firm's fifty day moving average price is $697.81 and its 200-day moving average price is $693.98.

McKesson (NYSE:MCK - Get Free Report) last posted its 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 company had revenue of $97.83 billion for 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 quarterly revenue was up 23.4% on a year-over-year basis. During the same quarter last year, the business earned $7.88 earnings per share. Analysts predict that McKesson Corporation will post 32.77 EPS for the current fiscal year.

McKesson Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be given a $0.82 dividend. 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 13.08%.

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.