CHURCHILL MANAGEMENT Corp Acquires New Position in McKesson Corporation $MCK

Key Points

• CHURCHILL MANAGEMENT Corp has acquired a new stake in McKesson Corporation, purchasing approximately 5,098 shares valued at around $3.74 million in the second quarter.
• CEO Brian S. Tyler sold 11,930 shares of McKesson stock, representing a 74.83% decrease in his ownership, while insider sales across the company totaled 43,560 shares worth over $30 million in the last three months.
• McKesson recently announced a quarterly dividend increase to $0.82, up from $0.71, reflecting a 0.4% yield and resulting in a low payout ratio of 13.08%.

CHURCHILL MANAGEMENT Corp acquired a new stake in McKesson Corporation (NYSE:MCK - Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 5,098 shares of the company's stock, valued at approximately $3,736,000.

A number of other hedge funds have also recently modified their holdings of the company. Warren Street Wealth Advisors LLC acquired a new position in McKesson in the second quarter valued at about $223,000. Pure Financial Advisors LLC lifted its position in McKesson by 9.7% in the second quarter. Pure Financial Advisors LLC now owns 1,108 shares of the company's stock valued at $812,000 after buying an additional 98 shares during the last quarter. Consolidated Planning Corp lifted its position in McKesson by 11.3% in the second quarter. Consolidated Planning Corp now owns 2,246 shares of the company's stock valued at $1,646,000 after buying an additional 228 shares during the last quarter. Robeco Institutional Asset Management B.V. lifted its position in McKesson by 10.3% in the second quarter. Robeco Institutional Asset Management B.V. now owns 195,912 shares of the company's stock valued at $143,560,000 after buying an additional 18,243 shares during the last quarter. Finally, SOA Wealth Advisors LLC. acquired a new position in McKesson in the second quarter valued at about $121,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

Insider Activity at McKesson

In related news, 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 sale, the chief executive officer owned 4,012 shares of the company's stock, valued at $2,830,987.56. This trade represents a 74.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the firm's stock in a transaction that occurred 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 completion of the sale, the chief accounting officer directly owned 657 shares in the company, valued at approximately $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 sold 43,560 shares of company stock worth $30,438,602. 0.08% of the stock is owned by corporate insiders.

McKesson Stock Performance

Shares of MCK opened at $765.57 on Thursday. The stock has a market capitalization of $95.22 billion, a PE ratio of 30.52, a P/E/G ratio of 1.39 and a beta of 0.51. McKesson Corporation has a 1 year low of $480.39 and a 1 year high of $776.14. The company's 50-day simple moving average is $701.10 and its 200-day simple moving average is $701.71.

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. On average, sell-side analysts predict that McKesson Corporation will post 32.77 earnings per share for the current year.

McKesson Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd were issued a $0.82 dividend. This represents a $3.28 annualized dividend and a yield of 0.4%. This is a positive change from McKesson's previous quarterly dividend of $0.71. The ex-dividend date of this dividend was Tuesday, September 2nd. McKesson's dividend payout ratio is 13.08%.

Wall Street Analyst Weigh In

MCK has been the topic of a number of recent analyst reports. Morgan Stanley upped their target price on shares of McKesson from $810.00 to $857.00 and gave the company an "overweight" rating in a research report on Wednesday, September 24th. Wall Street Zen raised shares of McKesson from a "hold" rating to a "buy" rating in a research report on Sunday. Bank of America upped their target price on shares of McKesson from $800.00 to $850.00 and gave the company a "buy" rating in a research report on Wednesday, September 24th. JPMorgan Chase & Co. upped their target price on shares of McKesson from $821.00 to $853.00 and gave the company an "overweight" rating in a research report on Friday, September 26th. Finally, Deutsche Bank Aktiengesellschaft increased their price target on shares of McKesson from $775.00 to $856.00 and gave the stock a "buy" rating in a research report on Wednesday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $829.08.

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.

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