Divergent Planning LLC Acquires New Shares in McKesson Corporation $MCK

Key Points

• Divergent Planning LLC acquired a new stake in McKesson Corporation during the 2nd quarter, purchasing 403 shares valued at approximately $295,000.
• Institutional investors own 85.07% of McKesson's stock, with several hedge funds significantly increasing their positions in the company over the past quarter.
• McKesson recently increased its quarterly dividend from $0.71 to $0.82, representing an annualized dividend yield of 0.5%.

Divergent Planning LLC bought a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 403 shares of the company's stock, valued at approximately $295,000.

Other hedge funds have also recently bought and sold shares of the company. Capital A Wealth Management LLC bought a new position in McKesson during the fourth quarter worth $26,000. Bank of Jackson Hole Trust raised its holdings in shares of McKesson by 64.3% during the first quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock worth $29,000 after purchasing an additional 18 shares during the period. CBIZ Investment Advisory Services LLC boosted its holdings in shares of McKesson by 1,366.7% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after buying an additional 41 shares during the period. Saudi Central Bank bought a new stake in shares of McKesson during the 1st quarter valued at about $34,000. Finally, Flaharty Asset Management LLC acquired a new stake in McKesson during the first quarter worth about $39,000. Institutional investors and hedge funds own 85.07% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the company. Wall Street Zen lowered McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Morgan Stanley restated an "overweight" rating and issued a $810.00 target price (up previously from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. Evercore ISI upped their target price on shares of McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 9th. Wells Fargo & Company lifted their price objective on shares of McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 13th. Finally, Cowen restated a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $725.10.

McKesson Price Performance

Shares of NYSE:MCK traded up $7.94 on Friday, reaching $698.07. 1,445,591 shares of the company traded hands, compared to its average volume of 872,692. McKesson Corporation has a fifty-two week low of $464.42 and a fifty-two week high of $737.89. The company's 50 day moving average is $695.36 and its 200-day moving average is $695.68. The stock has a market capitalization of $86.83 billion, a PE ratio of 27.83, a P/E/G ratio of 1.38 and a beta of 0.51.

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 company had revenue of $97.83 billion for the quarter, compared to analyst estimates of $95.93 billion. During the same period last year, the firm earned $7.88 earnings per share. The firm's revenue for the quarter was up 23.4% on a year-over-year basis. As a group, analysts expect that McKesson Corporation will post 32.77 EPS for the current year.

McKesson Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be given a $0.82 dividend. This represents a $3.28 annualized dividend and a dividend 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 13.08%.

Insider Buying and Selling

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of McKesson 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 transaction, the chief accounting officer directly owned 657 shares in the company, valued at approximately $436,031.19. The trade was a 33.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CEO Brian S. Tyler sold 11,930 shares of McKesson stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the transaction, the chief executive officer owned 4,012 shares in the company, valued at approximately $2,830,987.56. The trade was a 74.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 43,560 shares of company stock worth $30,438,602 in the last 90 days. 0.08% of the stock is owned by company insiders.

McKesson Company 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.