Evergreen Capital Management LLC Reduces Stake in McKesson Corporation $MCK

Key Points

• Evergreen Capital Management LLC significantly reduced its stake in McKesson Corporation by 62.3%, leaving it with 3,338 shares valued at approximately $2.25 million.
• McKesson's stock received several upgraded price targets from analysts, with Bank of America raising its target from $755 to $800 and Morgan Stanley setting a new target at $810.
• The company announced an increase in its quarterly dividend from $0.71 to $0.82 per share, reflecting a boost in its annualized payout and a dividend yield of 0.5%.

Evergreen Capital Management LLC lowered its position in McKesson Corporation (NYSE:MCK - Free Report) by 62.3% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 3,338 shares of the company's stock after selling 5,512 shares during the period. Evergreen Capital Management LLC's holdings in McKesson were worth $2,253,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other institutional investors have also added to or reduced their stakes in 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 purchasing an additional 2,389,992 shares during the last quarter. Northern Trust Corp lifted its stake in McKesson by 0.7% in the first 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 last quarter. Boston Partners lifted its stake in McKesson by 33.3% in the first quarter. Boston Partners now owns 1,461,785 shares of the company's stock worth $984,927,000 after purchasing an additional 365,484 shares during the last quarter. Price T Rowe Associates Inc. MD grew its stake 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 worth $868,237,000 after acquiring an additional 107,638 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC grew its stake in McKesson by 9.5% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,103,050 shares of the company's stock worth $628,639,000 after acquiring an additional 95,806 shares in the last quarter. Institutional investors own 85.07% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have commented on MCK shares. Morgan Stanley restated an "overweight" rating and issued a $810.00 target price (up from $770.00) on shares of McKesson in a research note 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 note on Wednesday, July 9th. Cowen restated a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. Bank of America upped their target price on shares of McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. Finally, Wall Street Zen lowered shares of McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. 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. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $725.10.

Insider Activity at McKesson

In related news, CEO Brian S. Tyler sold 19,371 shares of the 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 completion of the transaction, the chief executive officer directly owned 27,872 shares of the company's stock, valued at $19,735,884.48. This trade represents a 41.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the 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 completion of the transaction, the chief accounting officer directly owned 657 shares of the company's stock, valued at $436,031.19. The trade was a 33.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 62,930 shares of company stock valued at $44,112,466 over the last ninety days. 0.08% of the stock is currently owned by insiders.

McKesson Trading Up 0.1%

Shares of NYSE:MCK traded up $0.50 during trading on Thursday, reaching $691.34. The stock had a trading volume of 448,543 shares, compared to its average volume of 885,403. McKesson Corporation has a one year low of $464.42 and a one year high of $737.89. The company has a market capitalization of $85.99 billion, a P/E ratio of 27.53, a PEG ratio of 1.37 and a beta of 0.51. The firm's 50-day simple moving average is $700.53 and its 200 day simple moving average is $689.24.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported $8.26 EPS for the quarter, missing the consensus estimate of $8.33 by ($0.07). The company had revenue of $97.83 billion during the quarter, compared to analysts' expectations of $95.93 billion. McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The business's revenue for the quarter was up 23.4% compared to the same quarter last year. During the same period in the previous year, the business earned $7.88 earnings per share. Equities research analysts forecast that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors 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 an increase from McKesson's previous quarterly dividend of $0.71. McKesson's payout ratio is 13.08%.

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.