DnB Asset Management AS Raises Position in McKesson Corporation $MCK

Key Points

• DnB Asset Management AS increased its stake in McKesson Corporation by 26.3% during the first quarter, acquiring an additional 9,801 shares to reach a total of 47,027 shares valued at approximately $31.6 million.
• McKesson has received several upgrades from analysts, with Bank of America raising its price target from $755.00 to $800.00 and maintaining a "buy" rating, reflecting a positive outlook for the company.
• The company announced a quarterly dividend increase, now set at $0.82 per share, up from $0.71, with the dividend payout ratio at 13.08% and a yield of 0.5%.

DnB Asset Management AS raised its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 26.3% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 47,027 shares of the company's stock after buying an additional 9,801 shares during the quarter. DnB Asset Management AS's holdings in McKesson were worth $31,649,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also modified their holdings of the business. Clark Capital Management Group Inc. increased its holdings in shares of McKesson by 0.5% in the 1st quarter. Clark Capital Management Group Inc. now owns 117,661 shares of the company's stock worth $79,185,000 after purchasing an additional 626 shares in the last quarter. Clifford Group LLC bought a new stake in shares of McKesson in the first quarter worth $221,000. Banque Transatlantique SA grew its holdings in shares of McKesson by 14,660.0% in the first quarter. Banque Transatlantique SA now owns 2,214 shares of the company's stock worth $1,377,000 after acquiring an additional 2,199 shares during the period. Alliancebernstein L.P. grew its holdings in shares of McKesson by 5.9% in the first quarter. Alliancebernstein L.P. now owns 905,629 shares of the company's stock worth $609,479,000 after acquiring an additional 50,297 shares during the period. Finally, AQR Capital Management LLC grew its holdings in McKesson by 3.5% during the first quarter. AQR Capital Management LLC now owns 954,710 shares of the company's stock valued at $642,511,000 after purchasing an additional 32,530 shares during the period. Institutional investors own 85.07% of the company's stock.

Insider Buying and Selling

In related news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $663.67, for a total transaction of $218,347.43. Following the completion of the transaction, the chief accounting officer directly owned 657 shares of the company's stock, valued at approximately $436,031.19. This represents a 33.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Brian S. Tyler sold 19,371 shares of the company's stock in a transaction that occurred 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 owned 27,872 shares in the company, valued at approximately $19,735,884.48. This trade represents a 41.00% decrease in their ownership of the stock. 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 Performance

Shares of McKesson stock traded down $4.42 during trading hours on Friday, hitting $687.03. The company's stock had a trading volume of 472,767 shares, compared to its average volume of 767,007. The company has a market cap of $85.45 billion, a PE ratio of 27.39, a PEG ratio of 1.37 and a beta of 0.51. McKesson Corporation has a 12-month low of $464.42 and a 12-month high of $737.89. The business has a 50 day moving average price of $699.12 and a two-hundred day moving average price of $691.74.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $8.26 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 firm had revenue of $97.83 billion for the quarter, compared to the consensus estimate of $95.93 billion. During the same period in the previous year, the company posted $7.88 earnings per share. McKesson's quarterly revenue was up 23.4% on a year-over-year basis. As a group, research analysts anticipate that McKesson Corporation will post 32.77 earnings per share for the current year.

McKesson Increases Dividend

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

Wall Street Analysts Forecast Growth

Several analysts have issued reports on MCK shares. Wall Street Zen lowered McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Morgan Stanley reissued an "overweight" rating and set a $810.00 price target (up previously from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Wells Fargo & Company boosted their price target on McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a report on Wednesday, August 13th. Cowen reissued a "buy" rating on shares of McKesson in a report on Thursday, August 7th. Finally, 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. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $725.10.

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.