Caption Management LLC Makes New Investment in McKesson Corporation $MCK

Key Points

• Caption Management LLC invested approximately $269,000 in McKesson Corporation by acquiring 400 shares in the first quarter of the year.
• Recent analyst reports show a mix of ratings for McKesson, with upgrades to a price target range of $725.10 to $810.00, reflecting overall positive growth expectations.
• McKesson announced an increase in its quarterly dividend to $0.82 per share, up from $0.71, indicating a commitment to returning value to shareholders.

Caption Management LLC acquired a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) in the first quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor acquired 400 shares of the company's stock, valued at approximately $269,000.

Several other hedge funds and other institutional investors have also made changes to their positions in the company. Oppenheimer Asset Management Inc. increased its position in McKesson by 54.0% during the 1st quarter. Oppenheimer Asset Management Inc. now owns 4,541 shares of the company's stock worth $3,056,000 after purchasing an additional 1,592 shares during the period. Dynamic Advisor Solutions LLC boosted its stake in shares of McKesson by 16.6% in the first quarter. Dynamic Advisor Solutions LLC now owns 778 shares of the company's stock valued at $524,000 after buying an additional 111 shares in the last quarter. Cambridge Investment Research Advisors Inc. grew its holdings in McKesson by 18.9% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 23,033 shares of the company's stock worth $15,501,000 after acquiring an additional 3,659 shares during the period. Wealth Enhancement Advisory Services LLC grew its holdings in McKesson by 4.3% during the first quarter. Wealth Enhancement Advisory Services LLC now owns 183,258 shares of the company's stock worth $123,332,000 after acquiring an additional 7,556 shares during the period. Finally, LPL Financial LLC raised its position in McKesson by 12.8% in the first quarter. LPL Financial LLC now owns 155,946 shares of the company's stock worth $104,950,000 after acquiring an additional 17,750 shares in the last quarter. Hedge funds and other institutional investors own 85.07% of the company's stock.

Insider Transactions at McKesson

In related news, CEO Brian S. Tyler sold 19,371 shares of the firm's stock in a transaction that occurred on Friday, July 11th. The shares were 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 of the company's stock, valued at approximately $19,735,884.48. This trade represents a 41.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the company's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $663.67, for a total transaction of $218,347.43. Following the transaction, the chief accounting officer directly owned 657 shares of the company's stock, valued at $436,031.19. This trade represents a 33.37% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 43,560 shares of company stock valued at $30,438,602. Corporate insiders own 0.08% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages have commented on MCK. Evercore ISI boosted their target price 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. Wall Street Zen cut shares of McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. Morgan Stanley reissued an "overweight" rating and set a $810.00 price objective (up previously from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Cowen reaffirmed a "buy" rating on shares of McKesson in a report on Thursday, August 7th. Finally, Wells Fargo & Company lifted their price target on shares of McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 13th. One investment 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 stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $725.10.

McKesson Price Performance

MCK stock traded down $4.42 during midday trading on Friday, hitting $687.03. The stock had a trading volume of 472,767 shares, compared to its average volume of 767,007. The company's 50-day moving average price is $699.12 and its 200 day moving average price is $691.74. The firm has a market cap of $85.45 billion, a PE ratio of 27.39, a price-to-earnings-growth ratio of 1.37 and a beta of 0.51. McKesson Corporation has a 12-month low of $464.42 and a 12-month high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $8.26 earnings per share (EPS) for the quarter, missing the consensus estimate 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%.McKesson's revenue for the quarter was up 23.4% compared to the same quarter last year. During the same quarter last year, the business earned $7.88 EPS. As a group, sell-side analysts anticipate that McKesson Corporation will post 32.77 EPS for the current year.

McKesson Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd will be issued a $0.82 dividend. 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 annualized dividend and a yield of 0.5%. McKesson's dividend payout ratio (DPR) is presently 13.08%.

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.