Cove Private Wealth LLC Grows Position in McKesson Corporation (NYSE:MCK)

Key Points

• Cove Private Wealth LLC increased its holdings in McKesson Corporation by 14.7%, now owning 4,675 shares valued at approximately $3.15 million, which constitutes 1.7% of its portfolio.
• McKesson reported Q1 earnings of $8.26 per share, missing expectations, but its revenue rose 23.4% year-over-year, reaching $97.83 billion.
• The company has recently declared a quarterly dividend of $0.82, a significant increase from the previous $0.71, with a yield of 0.5%.

Cove Private Wealth LLC grew its position in shares of McKesson Corporation (NYSE:MCK - Free Report) by 14.7% during the first quarter, according to its most recent filing with the SEC. The firm owned 4,675 shares of the company's stock after acquiring an additional 600 shares during the period. McKesson comprises about 1.7% of Cove Private Wealth LLC's holdings, making the stock its 12th largest holding. Cove Private Wealth LLC's holdings in McKesson were worth $3,146,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the company. SouthState Corp lifted its holdings in shares of McKesson by 48.4% during the first quarter. SouthState Corp now owns 469 shares of the company's stock valued at $316,000 after purchasing an additional 153 shares during the last quarter. CCM Investment Group LLC purchased a new position in shares of McKesson during the first quarter valued at approximately $5,916,000. Lockheed Martin Investment Management Co. purchased a new position in shares of McKesson during the first quarter valued at approximately $8,143,000. Nuveen LLC purchased a new position in shares of McKesson during the first quarter valued at approximately $475,235,000. Finally, Cooper Financial Group lifted its holdings in shares of McKesson by 3.0% during the first quarter. Cooper Financial Group now owns 2,861 shares of the company's stock valued at $1,926,000 after purchasing an additional 83 shares during the last quarter. Hedge funds and other institutional investors own 85.07% of the company's stock.

Analysts Set New Price Targets

MCK has been the subject of several recent research reports. Wells Fargo & Company set a $766.00 target price on shares of McKesson and gave the company an "equal weight" rating in a report on Tuesday, June 3rd. Cowen restated a "buy" rating on shares of McKesson in a report on Thursday, August 7th. Bank of America boosted their price objective on shares of McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a report on Friday, May 9th. Morgan Stanley restated an "overweight" rating and issued a $810.00 price objective (up from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Finally, Wall Street Zen lowered shares of McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Three 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's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $718.73.

McKesson Trading Down 2.1%

McKesson stock traded down $13.99 during midday trading on Tuesday, hitting $658.78. The stock had a trading volume of 1,644,064 shares, compared to its average volume of 798,322. The firm's fifty day moving average is $712.03 and its two-hundred day moving average is $680.75. The company has a market capitalization of $81.94 billion, a PE ratio of 26.27, a P/E/G ratio of 1.34 and a beta of 0.50. McKesson Corporation has a 52-week low of $464.42 and a 52-week high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last released its earnings results 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). The firm had revenue of $97.83 billion during the quarter, compared to analysts' expectations of $95.93 billion. McKesson had a negative return on equity of 196.66% and a net margin of 0.84%. The company's revenue was up 23.4% compared to the same quarter last year. During the same period in the prior year, the company posted $7.88 earnings per share. As a group, equities research analysts predict that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The company also recently announced 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 of this dividend is Tuesday, September 2nd. This represents a $3.28 annualized dividend and a yield of 0.5%. This is a positive change from McKesson's previous quarterly dividend of $0.71. McKesson's payout ratio is currently 11.32%.

Insider Buying and Selling

In related news, EVP Thomas L. Rodgers sold 2,891 shares of the stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $712.18, for a total value of $2,058,912.38. Following the completion of the sale, the executive vice president directly owned 2,544 shares of the company's stock, valued at approximately $1,811,785.92. This represents a 53.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Britt J. Vitalone sold 1,878 shares of the business's stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $717.91, for a total value of $1,348,234.98. Following the completion of the transaction, the chief financial officer directly owned 14,028 shares in the company, valued at approximately $10,070,841.48. This represents a 11.81% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 52,817 shares of company stock worth $37,461,210 in the last ninety days. Corporate 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.