Diversified Trust Co Lowers Stake in McKesson Corporation $MCK

Key Points

• Diversified Trust Co reduced its stake in McKesson Corporation by 8.9% during the 2nd quarter, holding 5,540 shares valued at approximately $4,060,000 after the sale of 540 shares.
• Corporate insiders, including the Chief Accounting Officer and CEO, have sold substantial shares recently, with insiders selling a total of 43,560 shares valued at $30,438,602 in the past three months.
• Research analysts have mixed ratings for McKesson, with a recent report from Wells Fargo raising the price target to $772, while Wall Street Zen downgraded the stock from "buy" to "hold."

Diversified Trust Co reduced its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 8.9% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 5,540 shares of the company's stock after selling 540 shares during the period. Diversified Trust Co's holdings in McKesson were worth $4,060,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors and hedge funds also recently bought and sold shares of the company. GAMMA Investing LLC lifted its stake in McKesson by 75,632.7% in the first quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock worth $1,610,567,000 after acquiring an additional 2,389,992 shares during the last quarter. Northern Trust Corp grew its stake in shares of McKesson by 0.7% during the 1st quarter. Northern Trust Corp now owns 1,542,382 shares of the company's stock worth $1,038,008,000 after purchasing an additional 10,179 shares during the period. Boston Partners grew its stake in McKesson by 33.3% in the 1st quarter. Boston Partners now owns 1,461,785 shares of the company's stock valued at $984,927,000 after acquiring an additional 365,484 shares during the last quarter. Price T Rowe Associates Inc. MD lifted its holdings in McKesson by 9.1% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 1,290,116 shares of the company's stock valued at $868,237,000 after purchasing an additional 107,638 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in McKesson by 16.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,284,881 shares of the company's stock valued at $864,712,000 after purchasing an additional 181,831 shares in the last quarter. 85.07% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of analysts recently issued reports on MCK shares. Evercore ISI increased 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 raised their target price on McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 13th. Cowen restated a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. Morgan Stanley reissued an "overweight" rating and issued a $810.00 price target (up previously from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Finally, Wall Street Zen downgraded McKesson from a "buy" rating to a "hold" rating in a report on Saturday. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $725.10.

Insider Buying and Selling at McKesson

In related news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the stock in a transaction on Friday, August 8th. The stock was sold at an average price of $663.67, for a total value of $218,347.43. Following the sale, the chief accounting officer owned 657 shares in the company, valued at approximately $436,031.19. This trade represents a 33.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. 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 completion of the transaction, the chief executive officer directly owned 27,872 shares in the company, valued at approximately $19,735,884.48. This represents a 41.00% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 43,560 shares of company stock valued at $30,438,602. 0.08% of the stock is owned by corporate insiders.

McKesson Stock Up 1.2%

MCK traded up $7.94 during midday trading on Friday, hitting $698.07. 1,445,591 shares of the company were exchanged, compared to its average volume of 666,644. The firm has a market capitalization of $86.83 billion, a P/E ratio of 27.83, a P/E/G ratio of 1.39 and a beta of 0.51. The firm's 50 day moving average price is $695.15 and its 200-day moving average price is $696.44. McKesson Corporation has a 1-year low of $464.42 and a 1-year high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share for the quarter, missing analysts' consensus estimates of $8.33 by ($0.07). The firm had revenue of $97.83 billion for the quarter, compared to analyst estimates of $95.93 billion. McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.The firm's quarterly revenue was up 23.4% compared to the same quarter last year. During the same period last year, the company posted $7.88 earnings per share. On average, sell-side analysts predict that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be issued a $0.82 dividend. This is a boost from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 annualized dividend and a dividend yield of 0.5%. The ex-dividend date of this dividend is Tuesday, September 2nd. McKesson's dividend payout ratio is currently 13.08%.

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.