Ceredex Value Advisors LLC Makes New $20.88 Million Investment in McKesson Corporation $MCK

Key Points

• Ceredex Value Advisors LLC has invested approximately $20.88 million in McKesson Corporation by acquiring 31,025 shares during the first quarter.
• Analysts have been generally bullish, with upgrades in price targets, including Evercore ISI raising their target from $760.00 to $800.00 and Morgan Stanley increasing theirs to $810.00.
• McKesson announced a quarterly dividend increase, boosting it from $0.71 to $0.82 per share, reflecting a 0.5% yield and a 11.32% payout ratio.

Ceredex Value Advisors LLC bought a new position in McKesson Corporation (NYSE:MCK - Free Report) during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm bought 31,025 shares of the company's stock, valued at approximately $20,880,000.

Other large investors have also bought and sold shares of the company. Oppenheimer Asset Management Inc. raised its holdings in McKesson by 54.0% in the 1st quarter. Oppenheimer Asset Management Inc. now owns 4,541 shares of the company's stock worth $3,056,000 after acquiring an additional 1,592 shares during the last quarter. Dynamic Advisor Solutions LLC raised its position in McKesson by 16.6% in the 1st quarter. Dynamic Advisor Solutions LLC now owns 778 shares of the company's stock worth $524,000 after purchasing an additional 111 shares during the period. Cambridge Investment Research Advisors Inc. raised its position in McKesson by 18.9% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 23,033 shares of the company's stock worth $15,501,000 after purchasing an additional 3,659 shares during the period. Wealth Enhancement Advisory Services LLC increased its position in shares of 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 boosted its stake in shares of McKesson by 12.8% during the first quarter. LPL Financial LLC now owns 155,946 shares of the company's stock valued at $104,950,000 after purchasing an additional 17,750 shares in the last quarter. 85.07% of the stock is owned by institutional investors.

Insider Buying and Selling at McKesson

In other news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the stock in a transaction dated 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 in the company, valued at approximately $436,031.19. This represents a 33.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Brian S. Tyler sold 11,930 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the chief executive officer owned 4,012 shares of the company's stock, valued at approximately $2,830,987.56. The trade was a 74.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 62,930 shares of company stock valued at $44,112,466 in the last quarter. 0.08% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the stock. Bank of America raised 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. Evercore ISI raised their target price on shares of McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 9th. Morgan Stanley reiterated an "overweight" rating and set a $810.00 price target (up from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Wall Street Zen downgraded shares of McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. Finally, Cowen reaffirmed a "buy" rating on shares of McKesson in a report on Thursday, August 7th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $725.10.

McKesson Stock Performance

NYSE:MCK traded up $5.42 on Friday, hitting $686.44. 880,317 shares of the stock were exchanged, compared to its average volume of 891,772. The stock has a market capitalization of $85.38 billion, a price-to-earnings ratio of 27.37, a P/E/G ratio of 1.36 and a beta of 0.50. McKesson Corporation has a 52 week low of $464.42 and a 52 week high of $737.89. The company's 50-day moving average price is $703.12 and its 200 day moving average price is $686.81.

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). McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The firm had revenue of $97.83 billion during the quarter, compared to the consensus estimate of $95.93 billion. During the same quarter in the previous year, the firm posted $7.88 EPS. The company's revenue was up 23.4% on a year-over-year basis. As a group, equities research analysts predict that McKesson Corporation will post 32.77 earnings per share for the current year.

McKesson Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be issued a dividend of $0.82 per share. This is a positive change from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Tuesday, September 2nd. McKesson's dividend payout ratio is presently 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.