Canada Pension Plan Investment Board Decreases Stake in McKesson Corporation $MCK

Key Points

• The Canada Pension Plan Investment Board reduced its stake in McKesson Corporation by 70.1%, holding 19,451 shares worth approximately $13.09 million after selling 45,610 shares.
• In recent insider activity, McKesson's CAO sold 329 shares and CEO sold 19,371 shares of the company's stock, indicating a significant decrease in their holdings.
• McKesson declared a quarterly dividend increase to $0.82 per share, with an ex-dividend date of September 2nd, representing an approximate 0.5% yield.

Canada Pension Plan Investment Board cut its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 70.1% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 19,451 shares of the company's stock after selling 45,610 shares during the period. Canada Pension Plan Investment Board's holdings in McKesson were worth $13,090,000 at the end of the most recent reporting period.

A number of other hedge funds have also bought and sold shares of the business. Capital A Wealth Management LLC purchased a new position in shares of McKesson during the fourth quarter valued at approximately $26,000. Bank of Jackson Hole Trust grew its position in McKesson by 64.3% in the 1st quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock worth $29,000 after purchasing an additional 18 shares during the period. CBIZ Investment Advisory Services LLC raised its stake in McKesson by 1,366.7% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after buying an additional 41 shares during the last quarter. Pandora Wealth Inc. bought a new position in shares of McKesson during the 1st quarter valued at $40,000. Finally, Dagco Inc. purchased a new position in shares of McKesson in the 1st quarter worth $47,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

Insider Activity at McKesson

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of McKesson stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $663.67, for a total value of $218,347.43. Following the sale, the chief accounting officer owned 657 shares of the company's stock, valued at $436,031.19. The trade was a 33.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, CEO Brian S. Tyler sold 19,371 shares of the company's stock in a transaction that occurred on Friday, July 11th. The stock was sold at an average price of $708.09, for a total value of $13,716,411.39. Following the sale, the chief executive officer directly owned 27,872 shares in the company, valued at $19,735,884.48. This trade represents a 41.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 62,930 shares of company stock valued at $44,112,466 in the last 90 days. 0.08% of the stock is currently owned by company insiders.

Analyst Ratings Changes

A number of analysts recently commented on the company. Evercore ISI upped their price objective on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. Cowen reaffirmed a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. Bank of America boosted their price objective on McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a research note on Friday, May 9th. Wall Street Zen lowered shares of McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $810.00 price target (up previously from $770.00) on shares of McKesson in a report on Wednesday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $725.10.

McKesson Trading Up 0.8%

NYSE MCK opened at $686.44 on Tuesday. McKesson Corporation has a 12 month low of $464.42 and a 12 month high of $737.89. The stock's 50 day moving average is $701.72 and its 200 day moving average is $689.22. The stock has a market cap of $85.38 billion, a PE ratio of 27.37, a P/E/G ratio of 1.37 and a beta of 0.51.

McKesson (NYSE:MCK - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $8.26 EPS for the quarter, missing the consensus estimate of $8.33 by ($0.07). The company had revenue of $97.83 billion during the quarter, compared to analysts' expectations of $95.93 billion. McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.McKesson's quarterly revenue was up 23.4% compared to the same quarter last year. During the same period last year, the firm posted $7.88 EPS. On average, analysts forecast 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. Investors of record on Tuesday, September 2nd will be paid a dividend of $0.82 per share. The ex-dividend date of this dividend is Tuesday, September 2nd. 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 yield of 0.5%. McKesson's dividend payout ratio is currently 11.32%.

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.

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