Empowered Funds LLC Raises Holdings in McKesson Corporation $MCK

Key Points

• Empowered Funds LLC increased its stake in McKesson Corporation by 7.5%, acquiring an additional 2,348 shares, bringing its total holdings to 33,584 shares worth approximately $22.6 million.
• Insider transactions showed significant sales, with CEO Brian S. Tyler selling 19,371 shares at an average price of $708.09, indicating a 41.00% decrease in his ownership.
• McKesson recently announced an increase in its quarterly dividend from $0.71 to $0.82 per share, reflecting a positive change in its financial strategy.

Empowered Funds LLC grew its position in McKesson Corporation (NYSE:MCK - Free Report) by 7.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 33,584 shares of the company's stock after purchasing an additional 2,348 shares during the quarter. Empowered Funds LLC's holdings in McKesson were worth $22,602,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors and hedge funds have also recently modified their holdings of the company. Brighton Jones LLC grew its position in shares of McKesson by 46.3% during the fourth quarter. Brighton Jones LLC now owns 2,523 shares of the company's stock worth $1,438,000 after purchasing an additional 798 shares in the last quarter. Cary Street Partners Financial LLC bought a new position in McKesson in the 4th quarter worth approximately $108,000. Ethic Inc. grew its holdings in McKesson by 43.0% during the 4th quarter. Ethic Inc. now owns 5,042 shares of the company's stock valued at $2,874,000 after buying an additional 1,516 shares in the last quarter. Graham Capital Management L.P. raised its position in shares of McKesson by 57.9% during the fourth quarter. Graham Capital Management L.P. now owns 3,971 shares of the company's stock valued at $2,263,000 after buying an additional 1,456 shares during the last quarter. Finally, Jefferies Financial Group Inc. boosted its position in shares of McKesson by 48.6% during the fourth quarter. Jefferies Financial Group Inc. now owns 12,626 shares of the company's stock worth $7,196,000 after acquiring an additional 4,131 shares during the last quarter. 85.07% of the stock is currently owned by institutional investors.

McKesson Price Performance

MCK stock traded down $8.48 during mid-day trading on Friday, reaching $711.32. The company had a trading volume of 522,385 shares, compared to its average volume of 704,488. The firm has a 50 day moving average of $697.81 and a 200 day moving average of $693.98. The company has a market capitalization of $88.48 billion, a PE ratio of 28.36, a price-to-earnings-growth ratio of 1.43 and a beta of 0.51. McKesson Corporation has a 12 month low of $464.42 and a 12 month 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 (EPS) 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 the consensus estimate of $95.93 billion. McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.McKesson's quarterly revenue was up 23.4% compared to the same quarter last year. During the same period in the previous year, the company posted $7.88 EPS. Analysts anticipate that McKesson Corporation will post 32.77 EPS for the current year.

McKesson Increases Dividend

The business also recently declared 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%. The ex-dividend date of this dividend is Tuesday, September 2nd. This is a positive change from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio is presently 13.08%.

Insiders Place Their Bets

In related news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the firm's stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $663.67, for a total transaction of $218,347.43. Following the sale, the chief accounting officer owned 657 shares of the company's stock, valued at $436,031.19. This trade represents a 33.37% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Brian S. Tyler sold 11,930 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the sale, the chief executive officer directly owned 4,012 shares of the company's stock, 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 a total of 43,560 shares of company stock valued at $30,438,602 over the last 90 days. 0.08% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

MCK has been the topic of a number of research reports. Morgan Stanley reiterated an "overweight" rating and issued a $810.00 price target (up from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Evercore ISI lifted their target price on McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a report on Wednesday, July 9th. Wall Street Zen downgraded McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Wells Fargo & Company raised 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. Finally, Cowen reaffirmed a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, McKesson currently has an average rating of "Moderate Buy" and an average target price of $725.10.

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.