Citizens Financial Group Inc. RI Decreases Stock Holdings in McKesson Corporation (NYSE:MCK)

Key Points

• Citizens Financial Group Inc. has decreased its stake in McKesson Corporation by 12.9%, now holding 3,688 shares valued at approximately $2.48 million.
• McKesson reported a quarterly dividend increase to $0.82 per share, reflecting a shift from the previous quarterly dividend of $0.71.
• Analysts have raised price targets for McKesson, with UBS Group and Bank of America setting new targets at $805.00 and $800.00, respectively, indicating positive sentiment towards the stock.

Citizens Financial Group Inc. RI decreased its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 12.9% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 3,688 shares of the company's stock after selling 545 shares during the period. Citizens Financial Group Inc. RI's holdings in McKesson were worth $2,484,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also recently added to or reduced their stakes in the company. CBIZ Investment Advisory Services LLC grew its position in shares of McKesson by 1,366.7% in the first quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after purchasing an additional 41 shares during the period. Capital A Wealth Management LLC acquired a new stake in McKesson in the 4th quarter worth about $26,000. Bank of Jackson Hole Trust increased its stake in McKesson by 64.3% during the 1st quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock worth $29,000 after buying an additional 18 shares in the last quarter. Cornerstone Planning Group LLC raised its holdings in shares of McKesson by 1,840.0% during the first quarter. Cornerstone Planning Group LLC now owns 97 shares of the company's stock valued at $67,000 after acquiring an additional 92 shares during the last quarter. Finally, Costello Asset Management INC purchased a new position in shares of McKesson in the first quarter valued at approximately $81,000. Institutional investors and hedge funds own 85.07% of the company's stock.

Insider Transactions at McKesson

In related news, EVP Leann B. Smith sold 341 shares of the firm's stock in a transaction dated Wednesday, May 28th. The stock was sold at an average price of $717.91, for a total transaction of $244,807.31. Following the completion of the transaction, the executive vice president directly owned 2,800 shares in the company, valued at $2,010,148. This trade represents a 10.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Thomas L. Rodgers sold 2,891 shares of the company's stock in a transaction on Friday, May 30th. The stock was sold at an average price of $712.18, for a total value of $2,058,912.38. Following the sale, 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 disclosure for this sale can be found here. In the last three months, insiders have sold 52,488 shares of company stock worth $37,242,862. 0.08% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several analysts recently commented on the company. Wall Street Zen cut McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Wells Fargo & Company set a $766.00 target price on shares of McKesson and gave the stock an "equal weight" rating in a research note on Tuesday, June 3rd. UBS Group increased their target price on shares of McKesson from $708.00 to $805.00 and gave the company a "buy" rating in a research report on Tuesday, April 29th. Evercore ISI raised their price target 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. Finally, Morgan Stanley reaffirmed an "overweight" rating and set a $810.00 price objective (up previously from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Three investment analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $718.73.

McKesson Stock Performance

Shares of NYSE MCK traded up $3.89 during midday trading on Friday, reaching $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 P/E ratio of 26.60, a PEG ratio of 1.34 and a beta of 0.50. The company has a 50 day simple moving average of $714.12 and a 200 day simple moving average of $679.09. 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 released its quarterly 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 net margin of 0.84% and a negative return on equity of 196.66%. The company had revenue of $97.83 billion during the quarter, compared to analysts' expectations of $95.93 billion. During the same period last year, the firm posted $7.88 earnings per share. McKesson's revenue was up 23.4% on a year-over-year basis. On average, research analysts expect 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 issued a $0.82 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $3.28 annualized dividend and a dividend yield of 0.5%. This is a boost from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio (DPR) is presently 10.99%.

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.