First National Trust Co Lowers Stake in McKesson Corporation (NYSE:MCK)

Key Points

• First National Trust Co reduced its holdings in McKesson Corporation by 16.4%, now owning 2,201 shares valued at approximately $1.48 million.
• McKesson's recent earnings report showed $10.12 EPS, exceeding analysts' expectations, with quarterly revenue reported at $90.82 billion.
• The company announced an increase in its quarterly dividend to $0.82 per share, up from $0.71, representing an annual yield of 0.46%.

First National Trust Co decreased its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 16.4% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 2,201 shares of the company's stock after selling 432 shares during the period. First National Trust Co's holdings in McKesson were worth $1,481,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also made changes to their positions in the company. GAMMA Investing LLC boosted its holdings 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. Farallon Capital Management LLC bought a new stake in shares of McKesson during the 4th quarter valued at $348,044,000. Marshall Wace LLP increased its holdings in McKesson by 59,720.3% in the 4th quarter. Marshall Wace LLP now owns 358,922 shares of the company's stock valued at $204,553,000 after acquiring an additional 358,322 shares during the last quarter. Leigh Baldwin & CO. LLC bought a new stake in McKesson in the 4th quarter valued at $182,861,000. Finally, Deutsche Bank AG increased its holdings in McKesson by 64.0% in the 4th quarter. Deutsche Bank AG now owns 751,283 shares of the company's stock valued at $428,164,000 after acquiring an additional 293,148 shares during the last quarter. Institutional investors own 85.07% of the company's stock.

McKesson Stock Up 0.7%

Shares of NYSE:MCK traded up $4.89 during midday trading on Friday, reaching $698.43. The company's stock had a trading volume of 960,996 shares, compared to its average volume of 561,144. The firm has a market capitalization of $87.38 billion, a PE ratio of 27.04, a P/E/G ratio of 1.40 and a beta of 0.50. The stock has a fifty day moving average of $716.58 and a 200 day moving average of $675.60. McKesson Corporation has a twelve month low of $464.42 and a twelve month high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last released its quarterly earnings results on Thursday, May 8th. The company reported $10.12 EPS for the quarter, beating the consensus estimate of $9.83 by $0.29. The company had revenue of $90.82 billion for the quarter, compared to analyst estimates of $94 billion. McKesson had a net margin of 0.92% and a negative return on equity of 201.12%. The firm's revenue was up 18.9% on a year-over-year basis. During the same quarter last year, the business earned $6.18 earnings per share. Sell-side analysts anticipate that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be paid a $0.82 dividend. This is an increase 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 payout ratio is 10.99%.

Insider Transactions at McKesson

In other news, EVP Thomas L. Rodgers sold 2,891 shares of the firm's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $712.18, for a total value of $2,058,912.38. Following the transaction, the executive vice president directly owned 2,544 shares of the company's stock, valued at approximately $1,811,785.92. This trade represents a 53.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Britt J. Vitalone sold 6,336 shares of the firm's stock in a transaction dated Thursday, May 22nd. The stock was sold at an average price of $717.30, for a total transaction of $4,544,812.80. Following the completion of the transaction, the chief financial officer directly owned 14,760 shares in the company, valued at approximately $10,587,348. This represents a 30.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 52,488 shares of company stock valued at $37,242,862. Company insiders own 0.08% of the company's stock.

Analysts Set New Price Targets

MCK has been the topic of a number of research reports. Cfra Research downgraded shares of McKesson from a "moderate buy" rating to a "hold" rating in a report on Friday, April 4th. Wells Fargo & Company set a $766.00 target price on shares of McKesson and gave the stock an "equal weight" rating in a research note on Tuesday, June 3rd. Bank of America upped their price target on shares of McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. Wall Street Zen cut shares of McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Finally, UBS Group increased their target price on shares of McKesson from $708.00 to $805.00 and gave the company a "buy" rating in a research report on Tuesday, April 29th. Three research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $710.17.

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.