Hilltop National Bank Invests $1.23 Million in McKesson Corporation $MCK

Key Points

• Hilltop National Bank has invested approximately $1.23 million in McKesson Corporation by acquiring 1,683 shares during the second quarter.
• McKesson recently declared a quarterly dividend of $0.82, with an annualized dividend yield of 0.4%, up from the previous quarterly dividend of $0.71.
• Despite reporting a revenue of $97.83 billion for the quarter, McKesson's EPS of $8.26 missed analyst expectations by $0.07.

Hilltop National Bank acquired a new position in McKesson Corporation (NYSE:MCK - Free Report) in the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor acquired 1,683 shares of the company's stock, valued at approximately $1,233,000.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Nuveen LLC bought a new position in McKesson in the 1st quarter worth $475,235,000. Wellington Management Group LLP boosted its holdings in McKesson by 4,559.6% in the 1st quarter. Wellington Management Group LLP now owns 427,703 shares of the company's stock worth $287,840,000 after buying an additional 418,524 shares during the period. Boston Partners boosted its holdings in McKesson by 33.3% in the 1st quarter. Boston Partners now owns 1,461,785 shares of the company's stock worth $984,927,000 after buying an additional 365,484 shares during the period. Voya Investment Management LLC boosted its holdings in McKesson by 92.3% in the 1st quarter. Voya Investment Management LLC now owns 650,851 shares of the company's stock worth $437,760,000 after buying an additional 312,473 shares during the period. Finally, 1832 Asset Management L.P. bought a new position in McKesson in the 1st quarter worth $140,742,000. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

McKesson Stock Down 0.7%

MCK opened at $759.65 on Friday. The firm has a 50-day simple moving average of $702.08 and a two-hundred day simple moving average of $702.43. McKesson Corporation has a 52 week low of $480.39 and a 52 week high of $776.14. The company has a market capitalization of $94.49 billion, a PE ratio of 30.29, a price-to-earnings-growth ratio of 1.37 and a beta of 0.52.

McKesson (NYSE:MCK - Get Free Report) last released 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). 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 for the quarter, compared to the consensus estimate of $95.93 billion. During the same period last year, the company earned $7.88 EPS. The firm's revenue for the quarter was up 23.4% on a year-over-year basis. As a group, sell-side analysts expect that McKesson Corporation will post 32.77 earnings per share for the current year.

McKesson Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd were issued a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.4%. 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. McKesson's payout ratio is 13.08%.

Insider Transactions at McKesson

In related news, CEO Brian S. Tyler sold 19,371 shares of the stock in a transaction dated 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 owned 27,872 shares of the company's stock, valued at approximately $19,735,884.48. This trade represents a 41.00% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the stock in a transaction dated 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 approximately $436,031.19. The trade was a 33.37% 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 valued at $30,438,602. 0.08% of the stock is owned by insiders.

Analyst Ratings Changes

Several brokerages recently weighed in on MCK. UBS Group upped their target price on shares of McKesson from $820.00 to $860.00 and gave the stock a "buy" rating in a report on Wednesday, September 24th. Evercore ISI upped their target price on shares of McKesson from $800.00 to $825.00 and gave the stock an "outperform" rating in a report on Wednesday, September 24th. JPMorgan Chase & Co. upped their target price on shares of McKesson from $821.00 to $853.00 and gave the stock an "overweight" rating in a report on Friday, September 26th. Morgan Stanley upped their target price on shares of McKesson from $810.00 to $857.00 and gave the stock an "overweight" rating in a report on Wednesday, September 24th. Finally, Wells Fargo & Company increased their price objective on shares of McKesson from $772.00 to $816.00 and gave the company an "equal weight" rating in a report on Wednesday, September 24th. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $829.08.

McKesson 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.

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