Foster & Motley Inc. Trims Holdings in McKesson Corporation $MCK

Key Points

• Foster & Motley Inc. reduced its stake in McKesson Corporation by 6.5%, ending the quarter with 15,989 shares valued at approximately $11.7 million.
• Several analysts have raised their price targets for McKesson, with Leerink Partners and UBS Group increasing their targets to $850 and $860, respectively, and a consensus rating of "Moderate Buy" is established.
• McKesson announced a new quarterly dividend of $0.82, an increase from the previous $0.71, which translates to an annualized dividend yield of 0.4%.

Foster & Motley Inc. trimmed its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 6.5% during the second quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 15,989 shares of the company's stock after selling 1,117 shares during the quarter. Foster & Motley Inc.'s holdings in McKesson were worth $11,717,000 as of its most recent SEC filing.

Several other large investors have also added to or reduced their stakes in MCK. Bank of Jackson Hole Trust increased its position in shares of McKesson by 64.3% during the first quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock valued at $29,000 after buying an additional 18 shares during the period. CBIZ Investment Advisory Services LLC grew its stake in McKesson by 1,366.7% during the first quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after acquiring an additional 41 shares in the last quarter. GFG Capital LLC bought a new stake in McKesson during the 2nd quarter worth approximately $30,000. Saudi Central Bank purchased a new stake in McKesson in the 1st quarter worth approximately $34,000. Finally, Flaharty Asset Management LLC bought a new position in McKesson in the 1st quarter valued at $39,000. Institutional investors own 85.07% of the company's stock.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the company. Leerink Partners boosted their target price on McKesson from $785.00 to $850.00 and gave the stock an "outperform" rating in a research report on Wednesday, September 24th. UBS Group lifted their price target on McKesson from $820.00 to $860.00 and gave the company a "buy" rating in a research report on Wednesday, September 24th. Cowen restated a "buy" rating on shares of McKesson in a research report on Wednesday, September 24th. Wall Street Zen upgraded shares of McKesson from a "hold" rating to a "buy" rating in a research report on Sunday, September 28th. Finally, Mizuho increased their price target on shares of McKesson from $750.00 to $770.00 and gave the stock a "neutral" rating in a report on Wednesday, September 24th. One research analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, McKesson currently has a consensus rating of "Moderate Buy" and a consensus target price of $834.54.

Insiders Place Their Bets

In related news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the business'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 transaction, the chief accounting officer owned 657 shares in the company, valued at $436,031.19. The trade was a 33.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Brian S. Tyler sold 11,930 shares of the stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $705.63, for a total value of $8,418,165.90. Following the completion of the sale, the chief executive officer owned 4,012 shares of the company's stock, valued at approximately $2,830,987.56. This trade represents a 74.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 24,189 shares of company stock valued at $16,722,190 over the last quarter. 0.08% of the stock is currently owned by company insiders.

McKesson Trading Up 1.7%

Shares of NYSE:MCK opened at $788.27 on Friday. The stock has a market capitalization of $98.05 billion, a P/E ratio of 31.43, a price-to-earnings-growth ratio of 1.40 and a beta of 0.52. The stock's 50-day moving average price is $716.48 and its 200-day moving average price is $709.96. McKesson Corporation has a 12-month low of $492.39 and a 12-month high of $793.97.

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

McKesson Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd were paid a $0.82 dividend. The ex-dividend date of this dividend was Tuesday, September 2nd. This is a positive change from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 annualized dividend and a dividend yield of 0.4%. McKesson's payout ratio is presently 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.

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