Baker Avenue Asset Management LP Invests $432,000 in McKesson Corporation (NYSE:MCK)

Key Points

• Baker Avenue Asset Management LP has invested $432,000 in McKesson Corporation, acquiring 642 shares in the first quarter, as reported in a recent SEC filing.
• Several hedge funds, including T. Rowe Price and GAMMA Investing LLC, have significantly increased their stakes in McKesson, with institutional ownership now at 85.07%.
• McKesson's quarterly dividend increased from $0.71 to $0.82 per share, with a payment date set for October 1st, reflecting a 0.5% yield.

Baker Avenue Asset Management LP bought a new position in McKesson Corporation (NYSE:MCK - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm bought 642 shares of the company's stock, valued at approximately $432,000.

Several other large investors have also added to or reduced their stakes in MCK. GAMMA Investing LLC increased 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 purchasing an additional 2,389,992 shares during the period. Farallon Capital Management LLC bought a new position in shares of McKesson during the fourth quarter valued at about $348,044,000. Marshall Wace LLP grew its stake in shares of McKesson by 59,720.3% during the fourth quarter. Marshall Wace LLP now owns 358,922 shares of the company's stock valued at $204,553,000 after buying an additional 358,322 shares during the last quarter. Leigh Baldwin & CO. LLC bought a new position in shares of McKesson during the fourth quarter valued at about $182,861,000. Finally, Deutsche Bank AG grew its stake in shares of McKesson by 64.0% during the fourth quarter. Deutsche Bank AG now owns 751,283 shares of the company's stock valued at $428,164,000 after buying an additional 293,148 shares during the last quarter. Institutional investors own 85.07% of the company's stock.

Analyst Upgrades and Downgrades

MCK has been the topic of a number of recent research reports. Wall Street Zen cut McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. Bank of America increased their target price on shares of McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a report on Friday, May 9th. UBS Group raised their price objective on shares of McKesson from $708.00 to $805.00 and gave the stock a "buy" rating in a report on Tuesday, April 29th. Wells Fargo & Company set a $766.00 price objective on shares of McKesson and gave the stock an "equal weight" rating in a report on Tuesday, June 3rd. Finally, Morgan Stanley reiterated an "overweight" rating and set a $810.00 target price (up from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Three research analysts have rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $710.17.

Insider Activity at McKesson

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 543 shares of the business's stock in a transaction on Monday, May 19th. The shares were sold at an average price of $726.51, for a total value of $394,494.93. Following the sale, the chief accounting officer owned 1,972 shares in the company, valued at $1,432,677.72. The trade was a 21.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Britt J. Vitalone sold 6,336 shares of the business's stock in a transaction on Thursday, May 22nd. The stock was sold at an average price of $717.30, for a total transaction of $4,544,812.80. Following the completion of the sale, the chief financial officer owned 14,760 shares in the company, valued at approximately $10,587,348. The trade was a 30.03% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 52,488 shares of company stock worth $37,242,862 in the last 90 days. Company insiders own 0.08% of the company's stock.

McKesson Stock Performance

Shares of McKesson stock traded down $0.84 on Tuesday, hitting $710.10. 41,141 shares of the company's stock were exchanged, compared to its average volume of 873,443. The company has a 50-day simple moving average of $716.48 and a 200-day simple moving average of $677.63. The stock has a market capitalization of $88.84 billion, a PE ratio of 27.49, a PEG ratio of 1.41 and a beta of 0.50. McKesson Corporation has a 1 year low of $464.42 and a 1 year high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings results on Thursday, May 8th. The company reported $10.12 earnings per share for the quarter, topping the consensus estimate of $9.83 by $0.29. The business had revenue of $90.82 billion for the quarter, compared to analysts' expectations of $94 billion. McKesson had a net margin of 0.92% and a negative return on equity of 201.12%. The company's revenue was up 18.9% compared to the same quarter last year. During the same quarter last year, the company posted $6.18 EPS. On average, analysts expect that McKesson Corporation will post 32.77 EPS for the current fiscal year.

McKesson Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors 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. The ex-dividend date is Tuesday, September 2nd. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.5%. McKesson's dividend payout ratio is presently 10.99%.

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.