Citigroup Inc. Raises Stock Holdings in McKesson Corporation (NYSE:MCK)

Key Points

• Citigroup Inc. significantly increased its stake in McKesson Corporation by 107.8% in Q1, owning 140,058 shares valued at $94.26 million.
• McKesson's stock price is currently supported by strong recommendations from analysts, with most ratings being "buy" and a target price nearing $800.
• The company recently announced a quarterly dividend increase from $0.71 to $0.82 per share, highlighting its ongoing commitment to return value to shareholders.

Citigroup Inc. raised its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 107.8% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 140,058 shares of the company's stock after buying an additional 72,666 shares during the quarter. Citigroup Inc. owned about 0.11% of McKesson worth $94,258,000 at the end of the most recent quarter.

A number of other large investors have also added to or reduced their stakes in the stock. Brighton Jones LLC grew its holdings in shares of McKesson by 46.3% in the fourth quarter. Brighton Jones LLC now owns 2,523 shares of the company's stock worth $1,438,000 after acquiring an additional 798 shares during the period. Legacy Financial Advisors Inc. grew its holdings in McKesson by 12.5% during the fourth quarter. Legacy Financial Advisors Inc. now owns 558 shares of the company's stock valued at $318,000 after purchasing an additional 62 shares during the period. Heritage Trust Co bought a new stake in McKesson during the fourth quarter valued at about $1,453,000. Sterling Capital Management LLC grew its holdings in McKesson by 6.6% during the fourth quarter. Sterling Capital Management LLC now owns 12,643 shares of the company's stock valued at $7,205,000 after purchasing an additional 788 shares during the period. Finally, Qtron Investments LLC grew its holdings in McKesson by 16.4% during the fourth quarter. Qtron Investments LLC now owns 2,723 shares of the company's stock valued at $1,552,000 after purchasing an additional 383 shares during the period. Hedge funds and other institutional investors own 85.07% of the company's stock.

Insider Buying and Selling at McKesson

In other McKesson news, EVP Thomas L. Rodgers sold 2,891 shares of the stock in a transaction on Friday, May 30th. The stock was sold at an average price of $712.18, for a total transaction of $2,058,912.38. Following the sale, the executive vice president owned 2,544 shares of the company's stock, valued at approximately $1,811,785.92. This trade represents a 53.19% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Brian S. Tyler sold 19,371 shares of the stock in a transaction on Friday, July 11th. The shares were sold at an average price of $708.09, for a total value of $13,716,411.39. Following the sale, the chief executive officer directly owned 27,872 shares in the company, valued at $19,735,884.48. This trade represents a 41.00% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 52,817 shares of company stock worth $37,461,210. 0.08% of the stock is currently owned by company insiders.

McKesson Price Performance

Shares of MCK traded down $13.99 during mid-day trading on Tuesday, reaching $658.78. 1,644,064 shares of the company's stock traded hands, compared to its average volume of 798,322. The stock has a market cap of $81.94 billion, a P/E ratio of 26.27, a P/E/G ratio of 1.34 and a beta of 0.50. The stock's 50-day moving average is $712.03 and its two-hundred day moving average is $680.75. McKesson Corporation has a 12 month low of $464.42 and a 12 month high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings data 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 negative return on equity of 196.66% and a net margin of 0.84%. The firm had revenue of $97.83 billion during the quarter, compared to the consensus estimate of $95.93 billion. During the same period last year, the company earned $7.88 EPS. The firm's revenue for the quarter was up 23.4% compared to the same quarter last year. 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. Investors of record on Tuesday, September 2nd will be paid a $0.82 dividend. This represents a $3.28 annualized dividend and a yield of 0.5%. This is an increase from McKesson's previous quarterly dividend of $0.71. The ex-dividend date of this dividend is Tuesday, September 2nd. McKesson's payout ratio is currently 11.32%.

Wall Street Analyst Weigh In

MCK has been the subject of several recent research reports. Evercore ISI boosted their price target on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Bank of America upped their price objective on McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. Cowen reaffirmed a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. Morgan Stanley reaffirmed an "overweight" rating and issued a $810.00 price objective (up previously from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Finally, Wall Street Zen lowered McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. Three research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $718.73.

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.