Hsbc Holdings PLC Sells 36,892 Shares of McKesson Corporation $MCK

Key Points

• Hsbc Holdings PLC reduced its stake in McKesson Corporation by 12.8% during the first quarter, selling 36,892 shares and retaining a total of 251,578 shares valued at approximately $169 million.
• McKesson recently reported a quarterly earnings miss, posting $8.26 earnings per share, which was $0.07 below the consensus estimate, but its revenue rose by 23.4% year-over-year.
• The company has increased its quarterly dividend to $0.82, with a new annualized dividend yield of 0.5%, reflecting a boost from the previous dividend of $0.71.

Hsbc Holdings PLC decreased its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 12.8% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 251,578 shares of the company's stock after selling 36,892 shares during the quarter. Hsbc Holdings PLC owned approximately 0.20% of McKesson worth $168,978,000 at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of the business. T. Rowe Price Investment Management Inc. grew its stake in shares of McKesson by 8.5% in the fourth quarter. T. Rowe Price Investment Management Inc. now owns 2,847,385 shares of the company's stock worth $1,622,754,000 after purchasing an additional 222,496 shares during the last quarter. GAMMA Investing LLC grew its stake in shares of 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. Northern Trust Corp grew its stake in shares of McKesson by 0.7% in the first quarter. Northern Trust Corp now owns 1,542,382 shares of the company's stock worth $1,038,008,000 after purchasing an additional 10,179 shares during the last quarter. Boston Partners lifted its holdings in McKesson by 33.3% in the first quarter. Boston Partners now owns 1,461,785 shares of the company's stock valued at $984,927,000 after buying an additional 365,484 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in McKesson by 9.5% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,103,050 shares of the company's stock valued at $628,639,000 after buying an additional 95,806 shares during the period. Institutional investors own 85.07% of the company's stock.

McKesson Trading Up 0.8%

Shares of NYSE MCK opened at $676.8290 on Wednesday. The firm's 50-day moving average price is $708.26 and its 200-day moving average price is $683.16. McKesson Corporation has a 1-year low of $464.42 and a 1-year high of $737.89. The firm has a market capitalization of $84.18 billion, a P/E ratio of 26.99, a P/E/G ratio of 1.33 and a beta of 0.50.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The company reported $8.26 earnings per share 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 analyst estimates of $95.93 billion. During the same quarter in the prior year, the company posted $7.88 EPS. McKesson's revenue for the quarter was up 23.4% on a year-over-year basis. Equities research analysts forecast that McKesson Corporation will post 32.77 EPS for the current year.

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be issued a $0.82 dividend. The ex-dividend date 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 currently 11.32%.

Insider Buying and Selling

In related news, CEO Brian S. Tyler sold 11,930 shares of the company's stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $677.76, for a total value of $8,085,676.80. Following the sale, the chief executive officer owned 15,942 shares in the company, valued at $10,804,849.92. This represents a 42.80% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the company'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 completion of the sale, the chief accounting officer owned 657 shares in the company, valued at $436,031.19. This represents a 33.37% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 64,204 shares of company stock worth $45,152,392 over the last ninety days. Insiders own 0.08% of the company's stock.

Analyst Ratings Changes

Several equities analysts recently issued reports on the stock. Evercore ISI boosted their target price on shares of McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Bank of America boosted their target price on shares of McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a report on Friday, May 9th. Wells Fargo & Company boosted their target price on shares of McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a report on Wednesday, August 13th. Cowen restated a "buy" rating on shares of McKesson in a report on Thursday, August 7th. Finally, Morgan Stanley restated an "overweight" rating and issued a $810.00 target price (up previously from $770.00) on shares of McKesson in a report on Wednesday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus price target of $719.27.

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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