CCM Investment Group LLC Makes New Investment in McKesson Corporation (NYSE:MCK)

Key Points

• CCM Investment Group LLC has acquired a new stake in McKesson Corporation, purchasing 8,856 shares valued at approximately $5.9 million, which represents about 0.6% of their portfolio.
• McKesson recently announced an increase in its quarterly dividend to $0.82 per share, a rise from the previous $0.71, reflecting a positive shift in its financial outlook.
• Several institutional investors, including GAMMA Investing LLC and Nuveen LLC, have significantly increased their holdings in McKesson, showcasing growing confidence in the company's performance.

CCM Investment Group LLC bought a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) during the 1st quarter, according to its most recent filing with the Securities & Exchange Commission. The fund bought 8,856 shares of the company's stock, valued at approximately $5,916,000. McKesson makes up approximately 0.6% of CCM Investment Group LLC's portfolio, making the stock its 23rd largest position.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. CBIZ Investment Advisory Services LLC raised its stake in shares of McKesson by 1,366.7% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after purchasing an additional 41 shares during the period. Capital A Wealth Management LLC bought a new stake in McKesson during the fourth quarter worth about $26,000. Bank of Jackson Hole Trust raised its holdings in McKesson by 64.3% during the first quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock worth $29,000 after acquiring an additional 18 shares in the last quarter. Pandora Wealth Inc. bought a new stake in McKesson during the first quarter worth about $40,000. Finally, Cornerstone Planning Group LLC raised its holdings in McKesson by 1,840.0% during the first quarter. Cornerstone Planning Group LLC now owns 97 shares of the company's stock worth $67,000 after acquiring an additional 92 shares in the last quarter. Institutional investors and hedge funds own 85.07% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently issued reports on MCK shares. Wells Fargo & Company set a $766.00 target price on McKesson and gave the stock an "equal weight" rating in a report on Tuesday, June 3rd. Wall Street Zen lowered McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. UBS Group boosted their price target on McKesson from $708.00 to $805.00 and gave the stock a "buy" rating in a research report on Tuesday, April 29th. Cowen reissued a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. Finally, Bank of America boosted their price target on McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. Three analysts have rated the stock with a hold rating, eleven have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $718.73.

McKesson Stock Performance

Shares of MCK stock traded down $13.99 during trading on Tuesday, hitting $658.78. The company had a trading volume of 1,644,064 shares, compared to its average volume of 798,322. The firm has a market capitalization of $81.94 billion, a P/E ratio of 26.27, a price-to-earnings-growth ratio of 1.34 and a beta of 0.50. The stock's 50-day moving average price is $712.03 and its 200 day moving average price is $680.75. McKesson Corporation has a one year low of $464.42 and a one year high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings results 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). McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The company had revenue of $97.83 billion during the quarter, compared to the consensus estimate of $95.93 billion. During the same quarter last year, the firm posted $7.88 earnings per share. The company's quarterly revenue was up 23.4% on a year-over-year basis. On average, research analysts anticipate that McKesson Corporation will post 32.77 earnings per share 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 paid a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date is Tuesday, September 2nd. This is a positive change from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio is currently 11.32%.

Insider Buying and Selling

In other news, CEO Brian S. Tyler sold 19,371 shares of the stock in a transaction 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 completion of the transaction, the chief executive officer directly owned 27,872 shares in the company, valued at approximately $19,735,884.48. This represents a 41.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Britt J. Vitalone sold 6,336 shares of the stock in a transaction on Thursday, May 22nd. The shares were sold at an average price of $717.30, for a total value of $4,544,812.80. Following the completion of the transaction, the chief financial officer owned 14,760 shares of the company's stock, valued at $10,587,348. The trade was a 30.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 52,817 shares of company stock worth $37,461,210 in the last ninety days. Insiders own 0.08% of the company's stock.

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.