Charles Schwab Investment Management Inc. Boosts Position in McKesson Corporation (NYSE:MCK)

Key Points

• Charles Schwab Investment Management Inc. increased its stake in McKesson Corporation by 3.4%, acquiring an additional 28,045 shares, bringing its total holdings to 861,696 shares valued at approximately $579.9 million.
• McKesson recently declared a quarterly dividend of $0.82 per share, marking an increase from the previous dividend of $0.71, with a current dividend yield of 0.5%.
• Analysts have raised their price targets for McKesson, with UBS Group setting a new target of $805 and rating the stock as a "buy" amid a general consensus rating of "Moderate Buy."

Charles Schwab Investment Management Inc. increased its position in shares of McKesson Corporation (NYSE:MCK - Free Report) by 3.4% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 861,696 shares of the company's stock after purchasing an additional 28,045 shares during the period. Charles Schwab Investment Management Inc. owned approximately 0.69% of McKesson worth $579,913,000 as of its most recent SEC filing.

Other hedge funds have also recently added to or reduced their stakes in the company. ASR Vermogensbeheer N.V. purchased a new position in shares of McKesson during the 1st quarter worth approximately $11,109,000. Greykasell Wealth Strategies Inc. acquired a new position in McKesson during the first quarter worth $164,000. Hemington Wealth Management raised its position in McKesson by 23.5% in the first quarter. Hemington Wealth Management now owns 142 shares of the company's stock worth $95,000 after acquiring an additional 27 shares in the last quarter. Fi3 FINANCIAL ADVISORS LLC acquired a new stake in McKesson in the first quarter valued at $215,000. Finally, MGB Wealth Management LLC boosted its position in shares of McKesson by 10.5% during the 1st quarter. MGB Wealth Management LLC now owns 3,752 shares of the company's stock worth $2,521,000 after purchasing an additional 357 shares in the last quarter. Institutional investors and hedge funds own 85.07% of the company's stock.

McKesson Trading Up 0.6%

Shares of McKesson stock traded up $3.89 during mid-day trading on Friday, hitting $667.14. 1,298,642 shares of the stock were exchanged, compared to its average volume of 740,071. The stock has a market capitalization of $82.98 billion, a price-to-earnings ratio of 26.60, a price-to-earnings-growth ratio of 1.35 and a beta of 0.50. McKesson Corporation has a twelve month low of $464.42 and a twelve month high of $737.89. The company has a 50-day simple moving average of $714.12 and a 200 day simple moving average of $679.75.

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

Analyst Ratings Changes

MCK has been the subject of a number of research analyst reports. Morgan Stanley reiterated an "overweight" rating and issued a $810.00 price target (up previously from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Cowen restated a "buy" rating on shares of McKesson in a research report on Thursday. Bank of America increased their target price on shares of McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a report on Friday, May 9th. Wall Street Zen lowered McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. Finally, UBS Group upped their price target on McKesson from $708.00 to $805.00 and gave the stock a "buy" rating in a report on Tuesday, April 29th. Three investment analysts have rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $718.73.

Insider Buying and Selling

In other news, EVP Thomas L. Rodgers sold 2,891 shares of the stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $712.18, for a total transaction of $2,058,912.38. Following the transaction, the executive vice president directly owned 2,544 shares in the company, valued at $1,811,785.92. This represents a 53.19% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Napoleon B. Rutledge, Jr. sold 543 shares of the business's stock in a transaction that occurred on Monday, May 19th. The shares were sold at an average price of $726.51, for a total transaction of $394,494.93. Following the completion of the sale, the chief accounting officer owned 1,972 shares of the company's stock, valued at approximately $1,432,677.72. The trade was a 21.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 52,488 shares of company stock worth $37,242,862 over 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.