Fred Alger Management LLC Has $25.63 Million Stake in McKesson Corporation $MCK

Key Points

• Fred Alger Management LLC increased its stake in McKesson Corporation by 1,131.7%, acquiring an additional 34,981 shares is now holding a total of 38,072 shares valued at approximately $25.63 million.
• McKesson recently announced a quarterly dividend increase from $0.71 to $0.82 per share, with a dividend yield of 0.5% and a dividend payout ratio of 13.08%.
• Despite a revenue increase of 23.4% year-over-year, McKesson's latest earnings report missed consensus estimates, posting an earnings per share (EPS) of $8.26 against an expectation of $8.33.

Fred Alger Management LLC increased its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 1,131.7% during the 1st quarter, according to its most recent disclosure with the SEC. The institutional investor owned 38,072 shares of the company's stock after acquiring an additional 34,981 shares during the period. Fred Alger Management LLC's holdings in McKesson were worth $25,631,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds have also bought and sold shares of MCK. Oppenheimer Asset Management Inc. raised its stake in McKesson by 54.0% in the first quarter. Oppenheimer Asset Management Inc. now owns 4,541 shares of the company's stock valued at $3,056,000 after buying an additional 1,592 shares during the period. Dynamic Advisor Solutions LLC raised its stake in McKesson by 16.6% in the first quarter. Dynamic Advisor Solutions LLC now owns 778 shares of the company's stock valued at $524,000 after buying an additional 111 shares during the period. Cambridge Investment Research Advisors Inc. raised its stake in McKesson by 18.9% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 23,033 shares of the company's stock valued at $15,501,000 after buying an additional 3,659 shares during the period. Wealth Enhancement Advisory Services LLC raised its stake in McKesson by 4.3% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 183,258 shares of the company's stock valued at $123,332,000 after buying an additional 7,556 shares during the period. Finally, LPL Financial LLC raised its stake in McKesson by 12.8% in the first quarter. LPL Financial LLC now owns 155,946 shares of the company's stock valued at $104,950,000 after buying an additional 17,750 shares during the period. Institutional investors own 85.07% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have issued reports on the company. Wall Street Zen lowered McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. Evercore ISI increased their target price on McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 9th. Wells Fargo & Company increased 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 reiterated an "overweight" rating and set a $810.00 target price (up previously from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Finally, Cowen reiterated a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. One 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 company presently has an average rating of "Moderate Buy" and a consensus price target of $725.10.

Insiders Place Their Bets

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the firm's 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 sale, the chief accounting officer owned 657 shares of the company's stock, valued at approximately $436,031.19. This trade represents a 33.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Brian S. Tyler sold 11,930 shares of the firm's stock in a transaction on Friday, August 22nd. The shares were 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 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 disclosure for this sale can be found here. In the last ninety days, insiders sold 43,560 shares of company stock worth $30,438,602. Company insiders own 0.08% of the company's stock.

McKesson Price Performance

NYSE:MCK traded down $8.48 during trading hours on Friday, reaching $711.32. 522,385 shares of the company were exchanged, compared to its average volume of 704,488. The company has a market capitalization of $88.48 billion, a P/E ratio of 28.36, a P/E/G ratio of 1.43 and a beta of 0.51. McKesson Corporation has a 1-year low of $464.42 and a 1-year high of $737.89. The business has a 50 day moving average of $697.81 and a 200 day moving average of $694.47.

McKesson (NYSE:MCK - Get Free Report) last issued 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 company had revenue of $97.83 billion for the quarter, compared to analyst estimates of $95.93 billion. McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.The company's quarterly revenue was up 23.4% compared to the same quarter last year. During the same period in the prior year, the company earned $7.88 EPS. As a group, equities research analysts anticipate that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd will be issued a $0.82 dividend. 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%. This is a boost from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio (DPR) 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.