Ellsworth Advisors LLC Takes Position in McKesson Corporation $MCK

Key Points

• Ellsworth Advisors LLC has acquired a new stake in McKesson Corporation, purchasing 7,962 shares valued at approximately $5.36 million, which constitutes 1.4% of their investment portfolio.
• McKesson's CEO, Brian S. Tyler, sold 19,371 shares recently, marking a 41% decrease in his ownership, while the company also announced an increase in its quarterly dividend to $0.82.
• Analysts remain optimistic on McKesson, with several brokerage firms raising their price targets, attributing an average rating of "Moderate Buy" and a consensus price target of $725.10.

Ellsworth Advisors LLC purchased a new stake in McKesson Corporation (NYSE:MCK - Free Report) during the first quarter, according to its most recent 13F filing with the SEC. The firm purchased 7,962 shares of the company's stock, valued at approximately $5,358,000. McKesson makes up 1.4% of Ellsworth Advisors LLC's holdings, making the stock its 23rd largest holding.

A number of other large investors have also modified their holdings of the business. Capital A Wealth Management LLC purchased a new stake in McKesson in the fourth quarter valued at approximately $26,000. Bank of Jackson Hole Trust boosted its position in McKesson by 64.3% in the 1st quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock worth $29,000 after purchasing an additional 18 shares in the last quarter. CBIZ Investment Advisory Services LLC boosted its position in McKesson by 1,366.7% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock worth $30,000 after purchasing an additional 41 shares in the last quarter. Saudi Central Bank purchased a new stake in McKesson in the 1st quarter worth approximately $34,000. Finally, Flaharty Asset Management LLC purchased a new stake in McKesson in the 1st quarter worth approximately $39,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

Insiders Place Their Bets

In other news, CEO Brian S. Tyler sold 11,930 shares of the stock in a transaction 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 completion of the transaction, the chief executive officer directly owned 4,012 shares in the company, valued at approximately $2,830,987.56. This represents a 74.83% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, 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 transaction, the chief accounting officer 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 disclosure for this sale can be found here. Insiders sold a total of 43,560 shares of company stock valued at $30,438,602 over the last ninety days. Corporate insiders own 0.08% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have commented on MCK shares. Evercore ISI upped their price objective on 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 upped their target price on McKesson from $766.00 to $772.00 and gave the stock an "equal weight" rating in a research note on Wednesday, August 13th. Morgan Stanley reaffirmed an "overweight" rating and set a $810.00 target price (up from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Cowen reaffirmed a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. Finally, Wall Street Zen downgraded McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $725.10.

McKesson Price Performance

NYSE MCK traded down $8.48 during mid-day trading on Friday, hitting $711.32. The stock had a trading volume of 522,385 shares, compared to its average volume of 704,488. McKesson Corporation has a twelve month low of $464.42 and a twelve month high of $737.89. The stock has a market capitalization of $88.48 billion, a price-to-earnings ratio of 28.36, a PEG ratio of 1.43 and a beta of 0.51. The firm's 50 day moving average is $697.81 and its 200 day moving average is $694.47.

McKesson (NYSE:MCK - Get Free Report) last issued 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 during the quarter, compared to analyst estimates of $95.93 billion. During the same period last year, the business earned $7.88 earnings per share. The firm's revenue was up 23.4% compared to the same quarter last year. As a group, equities research analysts expect that McKesson Corporation will post 32.77 earnings per share for the current year.

McKesson Increases Dividend

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

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.