Channel Wealth LLC Lowers Holdings in McKesson Corporation $MCK

Key Points

• Channel Wealth LLC reduced its stake in McKesson Corporation by 48.3% during the second quarter, leaving them with 2,174 shares valued at approximately $1.59 million.
• McKesson recently reported quarterly earnings of $8.26 per share, slightly missing analysts' estimates, but their revenue increased substantially by 23.4% year-over-year.
• The company has increased its quarterly dividend from $0.71 to $0.82, with a dividend yield of 0.5%, and will be paid out on October 1st.

Channel Wealth LLC decreased its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 48.3% in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 2,174 shares of the company's stock after selling 2,031 shares during the quarter. Channel Wealth LLC's holdings in McKesson were worth $1,593,000 as of its most recent SEC filing.

A number of other large investors have also modified their holdings of MCK. Oppenheimer Asset Management Inc. grew its holdings in shares of McKesson by 54.0% in the first quarter. Oppenheimer Asset Management Inc. now owns 4,541 shares of the company's stock valued at $3,056,000 after purchasing an additional 1,592 shares during the period. Dynamic Advisor Solutions LLC grew its holdings 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 purchasing an additional 111 shares during the period. Cambridge Investment Research Advisors Inc. lifted its position in McKesson by 18.9% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 23,033 shares of the company's stock valued at $15,501,000 after buying an additional 3,659 shares during the last quarter. Acadian Asset Management LLC lifted its position in McKesson by 22.0% in the first quarter. Acadian Asset Management LLC now owns 378,926 shares of the company's stock valued at $254,979,000 after buying an additional 68,294 shares during the last quarter. Finally, Wealth Enhancement Advisory Services LLC lifted its position in McKesson by 4.3% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 183,258 shares of the company's stock valued at $123,332,000 after buying an additional 7,556 shares during the last quarter. Hedge funds and other institutional investors own 85.07% of the company's stock.

Insider Buying and Selling at McKesson

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the business's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $663.67, for a total transaction of $218,347.43. Following the sale, the chief accounting officer directly owned 657 shares in the company, valued at approximately $436,031.19. The trade was a 33.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Brian S. Tyler sold 11,930 shares of McKesson stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $705.63, for a total value of $8,418,165.90. Following the transaction, the chief executive officer directly owned 4,012 shares of the company's stock, valued at $2,830,987.56. This trade represents a 74.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 43,560 shares of company stock worth $30,438,602 over the last 90 days. Insiders own 0.08% of the company's stock.

Analysts Set New Price Targets

A number of research analysts have commented on the stock. Cowen reaffirmed a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. Evercore ISI upped their target price on shares of McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. Morgan Stanley reaffirmed an "overweight" rating and issued a $810.00 target price (up previously from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. Wall Street Zen cut shares of McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Finally, Wells Fargo & Company increased their price target on shares of McKesson from $766.00 to $772.00 and gave the stock 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 issued a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $725.10.

McKesson Trading Up 1.2%

NYSE:MCK traded up $7.94 during mid-day trading on Friday, hitting $698.07. The stock had a trading volume of 1,445,591 shares, compared to its average volume of 872,692. The stock has a 50-day simple moving average of $695.36 and a two-hundred day simple moving average of $695.68. The company has a market capitalization of $86.83 billion, a PE ratio of 27.83, a PEG ratio of 1.38 and a beta of 0.51. McKesson Corporation has a twelve month low of $464.42 and a twelve month high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share for the quarter, missing the consensus estimate of $8.33 by ($0.07). The firm had revenue of $97.83 billion during the quarter, compared to analyst estimates of $95.93 billion. McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The firm's revenue was up 23.4% compared to the same quarter last year. During the same period last year, the business earned $7.88 EPS. Sell-side analysts predict that McKesson Corporation will post 32.77 EPS for the current fiscal year.

McKesson Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd will be given a dividend of $0.82 per share. This represents a $3.28 annualized dividend and a dividend yield of 0.5%. The ex-dividend date is Tuesday, September 2nd. This is an increase from McKesson's previous quarterly dividend of $0.71. McKesson's payout ratio is presently 13.08%.

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.