Invesco Ltd. Grows Holdings in McKesson Corporation (NYSE:MCK)

Key Points

• Invesco Ltd. increased its stake in McKesson Corporation by 0.7%, owning approximately 1,061,744 shares valued at $714.5 million at the end of the reporting period.
• McKesson has seen significant interest from institutional investors, with 85.07% of the stock owned by them and a notable increase in stakes from firms like GAMMA Investing LLC and Marshall Wace LLP.
• The company announced a quarterly dividend increase from $0.71 to $0.82, with the new payment scheduled for October 1st, signaling a positive shift in shareholder returns.

Invesco Ltd. grew its stake in McKesson Corporation (NYSE:MCK - Free Report) by 0.7% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,061,744 shares of the company's stock after buying an additional 7,108 shares during the period. Invesco Ltd. owned approximately 0.85% of McKesson worth $714,543,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also bought and sold shares of MCK. GAMMA Investing LLC lifted its holdings in shares of McKesson by 75,632.7% in the 1st quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock worth $1,610,567,000 after acquiring an additional 2,389,992 shares during the last quarter. Farallon Capital Management LLC bought a new stake in shares of McKesson in the 4th quarter worth approximately $348,044,000. Marshall Wace LLP raised its holdings in McKesson by 59,720.3% during the 4th quarter. Marshall Wace LLP now owns 358,922 shares of the company's stock valued at $204,553,000 after buying an additional 358,322 shares during the last quarter. Leigh Baldwin & CO. LLC bought a new stake in McKesson during the 4th quarter valued at $182,861,000. Finally, Deutsche Bank AG raised its holdings in McKesson by 64.0% during the 4th quarter. Deutsche Bank AG now owns 751,283 shares of the company's stock valued at $428,164,000 after buying an additional 293,148 shares during the last quarter. Hedge funds and other institutional investors own 85.07% of the company's stock.

Analysts Set New Price Targets

MCK has been the subject of a number of recent analyst reports. Wall Street Zen lowered shares of McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Bank of America boosted their price objective on shares of McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a research report on Friday, May 9th. Cowen reissued a "buy" rating on shares of McKesson in a research report on Thursday. Evercore ISI boosted their price objective on shares of McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. Finally, Morgan Stanley reaffirmed an "overweight" rating and issued a $810.00 target price (up from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. Three analysts have rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $718.73.

McKesson Stock Performance

MCK opened at $667.14 on Friday. The stock has a market capitalization of $82.98 billion, a P/E ratio of 26.60, a P/E/G ratio of 1.35 and a beta of 0.50. The company's 50-day simple moving average is $714.12 and its two-hundred day simple moving average is $679.75. McKesson Corporation has a 52-week low of $464.42 and a 52-week high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $8.33 by ($0.07). The company had revenue of $97.83 billion for the quarter, compared to the consensus estimate of $95.93 billion. McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. McKesson's revenue was up 23.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $7.88 EPS. Research analysts forecast that McKesson Corporation will post 32.77 EPS for the current fiscal year.

McKesson Increases Dividend

The firm also recently disclosed 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 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 dividend on an annualized basis and a dividend yield of 0.5%. McKesson's payout ratio is 10.99%.

Insider Buying and Selling

In other McKesson news, CFO Britt J. Vitalone sold 6,336 shares of McKesson stock in a transaction that occurred on Thursday, May 22nd. The shares were sold at an average price of $717.30, for a total transaction of $4,544,812.80. Following the transaction, the chief financial officer owned 14,760 shares of the company's stock, valued at $10,587,348. The trade was a 30.03% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Thomas L. Rodgers sold 2,891 shares of McKesson stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $712.18, for a total transaction of $2,058,912.38. Following the transaction, the executive vice president directly owned 2,544 shares in the company, valued at $1,811,785.92. This represents a 53.19% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 52,488 shares of company stock valued at $37,242,862 in the last 90 days. 0.08% of the stock is owned by insiders.

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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