McKesson Corporation $MCK is Jacobs Levy Equity Management Inc.'s 8th Largest Position

Key Points

• Jacobs Levy Equity Management Inc. reduced its holdings in McKesson Corporation by 14.5%, now owning 521,314 shares valued at approximately $350.84 million.
• Several other hedge funds have adjusted their stakes in McKesson, with Brighton Jones LLC increasing its stake by 46.3% during the fourth quarter.
• McKesson recently declared a quarterly dividend of $0.82 per share, increasing from the previous $0.71, with a dividend yield of 0.5%.

Jacobs Levy Equity Management Inc. cut its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 14.5% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 521,314 shares of the company's stock after selling 88,729 shares during the period. McKesson comprises about 1.4% of Jacobs Levy Equity Management Inc.'s holdings, making the stock its 8th largest position. Jacobs Levy Equity Management Inc. owned 0.42% of McKesson worth $350,839,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently bought and sold shares of MCK. GAMMA Investing LLC raised its stake in McKesson by 75,632.7% in the first quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock valued at $1,610,567,000 after buying an additional 2,389,992 shares in the last quarter. Nuveen LLC acquired a new stake in McKesson in the first quarter valued at $475,235,000. Farallon Capital Management LLC acquired a new stake in McKesson in the fourth quarter valued at $348,044,000. Wellington Management Group LLP raised its stake in McKesson by 4,559.6% in the first quarter. Wellington Management Group LLP now owns 427,703 shares of the company's stock valued at $287,840,000 after buying an additional 418,524 shares in the last quarter. Finally, Boston Partners raised its stake 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 in the last quarter. 85.07% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of McKesson stock in a transaction that occurred 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. The trade was a 33.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Brian S. Tyler sold 11,930 shares of McKesson 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 completion of the sale, 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 position. The disclosure for this sale can be found here. Insiders sold a total of 43,560 shares of company stock worth $30,438,602 in the last ninety days. 0.08% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

A number of research firms have weighed in on MCK. Cowen restated a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. 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 report on Wednesday, July 16th. Evercore ISI lifted 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. Wells Fargo & Company lifted their target price on McKesson from $766.00 to $772.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 13th. Finally, Wall Street Zen cut McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. One research 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 company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $725.10.

McKesson Stock Down 0.6%

MCK stock traded down $4.42 during trading on Friday, hitting $687.03. The company had a trading volume of 472,767 shares, compared to its average volume of 767,007. The firm has a market cap of $85.45 billion, a PE ratio of 27.39, a price-to-earnings-growth ratio of 1.37 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 firm has a 50-day moving average price of $699.12 and a 200-day moving average price of $691.74.

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 the consensus estimate of $8.33 by ($0.07). The company had revenue of $97.83 billion during the quarter, compared to analyst estimates of $95.93 billion. McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The business's revenue was up 23.4% on a year-over-year basis. During the same quarter last year, the firm earned $7.88 EPS. Sell-side analysts anticipate that McKesson Corporation will post 32.77 earnings per share for the current year.

McKesson Increases Dividend

The firm also recently disclosed 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 yield of 0.5%. This is a boost from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio is presently 13.08%.

McKesson Company 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.