Jones Financial Companies Lllp Trims Holdings in McKesson Corporation $MCK

Key Points

• Jones Financial Companies Lllp reduced its holdings in McKesson Corporation by 31.6%, owning 4,550 shares worth approximately $3.06 million after selling 2,105 shares in the first quarter.
• McKesson recently announced an increase in its quarterly dividend to $0.82 per share, up from $0.71, with a payout ratio of 13.08%.
• Despite missing earnings estimates by $0.07, McKesson's revenue grew 23.4% year-over-year, totaling $97.83 billion for the quarter.

Jones Financial Companies Lllp decreased its position in shares of McKesson Corporation (NYSE:MCK - Free Report) by 31.6% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 4,550 shares of the company's stock after selling 2,105 shares during the period. Jones Financial Companies Lllp's holdings in McKesson were worth $3,062,000 at the end of the most recent quarter.

Other hedge funds have also made changes to their positions in the company. GAMMA Investing LLC grew its holdings 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 valued at $1,610,567,000 after purchasing an additional 2,389,992 shares in 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 acquiring an additional 10,179 shares in the last quarter. Boston Partners grew its stake in shares of McKesson by 33.3% in the first quarter. Boston Partners now owns 1,461,785 shares of the company's stock worth $984,927,000 after acquiring an additional 365,484 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in shares of McKesson by 9.1% during the first quarter. Price T Rowe Associates Inc. MD now owns 1,290,116 shares of the company's stock worth $868,237,000 after acquiring an additional 107,638 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its stake in shares of 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 acquiring an additional 95,806 shares in the last quarter. Institutional investors and hedge funds own 85.07% of the company's stock.

McKesson Trading Up 0.0%

Shares of McKesson stock opened at $705.88 on Thursday. The company has a fifty day simple moving average of $697.99 and a 200-day simple moving average of $692.62. The stock has a market cap of $87.80 billion, a price-to-earnings ratio of 28.15, a PEG ratio of 1.40 and a beta of 0.51. McKesson Corporation has a 12-month low of $464.42 and a 12-month high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share for the quarter, missing analysts' consensus estimates of $8.33 by ($0.07). The company had revenue of $97.83 billion during the quarter, compared to analysts' expectations 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 period last year, the firm earned $7.88 earnings per share. On average, analysts forecast that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be issued a dividend of $0.82 per share. This is an increase from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 annualized dividend and a yield of 0.5%. The ex-dividend date of this dividend is Tuesday, September 2nd. McKesson's dividend payout ratio is currently 13.08%.

Insider Transactions at McKesson

In related news, CEO Brian S. Tyler sold 11,930 shares of the company's stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the transaction, the chief executive officer owned 4,012 shares of the company's stock, valued at $2,830,987.56. This represents a 74.83% decrease in their ownership of the stock. The sale 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 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 completion of the transaction, the chief accounting officer owned 657 shares of the company's stock, valued at $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 90 days, insiders sold 43,560 shares of company stock valued at $30,438,602. 0.08% of the stock is owned by insiders.

Analyst Upgrades and Downgrades

Several research analysts recently commented on MCK shares. Cowen reissued a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. Evercore ISI boosted their price objective 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 raised 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. Wall Street Zen cut shares of McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Finally, Morgan Stanley reissued an "overweight" rating and issued a $810.00 price objective (up from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $725.10.

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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