Gateway Investment Advisers LLC Has $2.60 Million Position in McKesson Corporation $MCK

Key Points

• Gateway Investment Advisers LLC reduced its shareholding in McKesson Corporation by 48.6%, now owning 3,544 shares valued at approximately $2.6 million after selling 3,349 shares in the second quarter.
• McKesson announced a quarterly dividend hike from $0.71 to $0.82 per share, representing a 0.5% yield, which will be paid on October 1st.
• The company reported earnings per share (EPS) of $8.26 for the last quarter, slightly below analysts' expectations, while its revenue surged by 23.4% year-over-year to $97.83 billion.

Gateway Investment Advisers LLC lowered its stake in McKesson Corporation (NYSE:MCK - Free Report) by 48.6% during the second quarter, according to its most recent Form 13F filing with the SEC. The firm owned 3,544 shares of the company's stock after selling 3,349 shares during the period. Gateway Investment Advisers LLC's holdings in McKesson were worth $2,597,000 as of its most recent filing with the SEC.

A number of other hedge funds and other institutional investors also recently made changes to their positions in MCK. MassMutual Private Wealth & Trust FSB increased its position in shares of McKesson by 1.6% in the 2nd quarter. MassMutual Private Wealth & Trust FSB now owns 863 shares of the company's stock worth $632,000 after purchasing an additional 14 shares during the last quarter. CVA Family Office LLC boosted its position in McKesson by 6.0% in the first quarter. CVA Family Office LLC now owns 265 shares of the company's stock valued at $178,000 after buying an additional 15 shares in the last quarter. Palisade Asset Management LLC raised its stake in shares of McKesson by 2.1% during the first quarter. Palisade Asset Management LLC now owns 715 shares of the company's stock worth $481,000 after buying an additional 15 shares during the last quarter. SteelPeak Wealth LLC increased its position in shares of McKesson by 0.5% during the first quarter. SteelPeak Wealth LLC now owns 2,771 shares of the company's stock worth $1,867,000 after acquiring an additional 15 shares in the last quarter. Finally, Parallel Advisors LLC lifted its stake in McKesson by 0.6% in the first quarter. Parallel Advisors LLC now owns 2,501 shares of the company's stock valued at $1,683,000 after acquiring an additional 16 shares during the last quarter. 85.07% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms recently issued reports on MCK. Cowen reiterated a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. Wells Fargo & Company increased their price target on shares of McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 13th. Morgan Stanley reaffirmed an "overweight" rating and issued a $810.00 price target (up previously from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Evercore ISI boosted their target price on McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 9th. Finally, Wall Street Zen cut McKesson from a "buy" rating to a "hold" rating in a report on Saturday. One investment analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $725.10.

McKesson Stock Performance

MCK traded up $7.94 during mid-day trading on Friday, reaching $698.07. The stock had a trading volume of 1,445,591 shares, compared to its average volume of 666,644. The firm's fifty day simple moving average is $695.15 and its two-hundred day simple moving average is $696.44. McKesson Corporation has a 52 week low of $464.42 and a 52 week high of $737.89. The stock has a market capitalization of $86.83 billion, a P/E ratio of 27.83, a P/E/G ratio of 1.39 and a beta of 0.51.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings data 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%.The company's revenue was up 23.4% on a year-over-year basis. During the same quarter in the prior year, the firm earned $7.88 EPS. As a group, analysts expect that McKesson Corporation will post 32.77 EPS for the current fiscal year.

McKesson Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be paid a dividend of $0.82 per share. 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. This represents a $3.28 annualized dividend and a yield of 0.5%. McKesson's dividend payout ratio is 13.08%.

Insider Activity

In other McKesson news, CEO Brian S. Tyler sold 11,930 shares of the stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 4,012 shares in the company, valued at $2,830,987.56. This represents a 74.83% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of McKesson 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 transaction, the chief accounting officer directly owned 657 shares of the company's stock, valued at $436,031.19. This trade represents a 33.37% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 43,560 shares of company stock valued at $30,438,602 in the last 90 days. Company insiders own 0.08% of the company's stock.

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.