JSF Financial LLC Takes $1.18 Million Position in McKesson Corporation (NYSE:MCK)

Key Points

• JSF Financial LLC has made a new investment of approximately $1.18 million in McKesson Corporation, acquiring 1,757 shares during the first quarter.
• McKesson's quarterly earnings surpassed analysts' estimates, reporting $10.12 earnings per share on revenue of $90.82 billion, although the revenue figure fell short of the expected $94 billion.
• Analysts have set new price targets for McKesson, with UBS Group raising its target to $805.00 and Morgan Stanley to $810.00, both recommending a "buy" rating.

JSF Financial LLC bought a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 1,757 shares of the company's stock, valued at approximately $1,182,000.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in MCK. CBIZ Investment Advisory Services LLC raised its position in McKesson by 1,366.7% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after purchasing an additional 41 shares during the last quarter. Capital A Wealth Management LLC bought a new position in McKesson during the 4th quarter valued at approximately $26,000. Cornerstone Planning Group LLC raised its position in McKesson by 1,840.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 97 shares of the company's stock valued at $67,000 after purchasing an additional 92 shares during the last quarter. Johnson Financial Group Inc. bought a new position in McKesson during the 4th quarter valued at approximately $76,000. Finally, Itau Unibanco Holding S.A. raised its position in McKesson by 350.0% during the 4th quarter. Itau Unibanco Holding S.A. now owns 144 shares of the company's stock valued at $82,000 after purchasing an additional 112 shares during the last quarter. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

McKesson Trading Up 0.8%

Shares of McKesson stock traded up $5.46 during trading hours on Friday, reaching $699.00. The stock had a trading volume of 525,478 shares, compared to its average volume of 876,346. McKesson Corporation has a twelve month low of $464.42 and a twelve month high of $737.89. The stock's 50 day moving average is $716.92 and its 200 day moving average is $674.88. The firm has a market capitalization of $87.45 billion, a PE ratio of 27.06, a PEG ratio of 1.45 and a beta of 0.48.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The company reported $10.12 EPS for the quarter, topping the consensus estimate of $9.83 by $0.29. McKesson had a negative return on equity of 201.12% and a net margin of 0.92%. The business had revenue of $90.82 billion for the quarter, compared to analyst estimates of $94 billion. During the same quarter in the previous year, the firm earned $6.18 EPS. The company's quarterly revenue was up 18.9% compared to the same quarter last year. As a group, sell-side analysts predict that McKesson Corporation will post 32.77 earnings per share for the current year.

McKesson Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be paid a $0.82 dividend. This is a positive change from McKesson's previous quarterly dividend of $0.71. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $3.28 annualized dividend and a dividend yield of 0.5%. McKesson's dividend payout ratio is currently 12.70%.

Insiders Place Their Bets

In related news, EVP Leann B. Smith sold 341 shares of the stock in a transaction that occurred on Wednesday, May 28th. The shares were sold at an average price of $717.91, for a total transaction of $244,807.31. Following the completion of the transaction, the executive vice president owned 2,800 shares of the company's stock, valued at approximately $2,010,148. This trade represents a 10.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Britt J. Vitalone sold 1,878 shares of the stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $717.91, for a total transaction of $1,348,234.98. Following the transaction, the chief financial officer directly owned 14,028 shares of the company's stock, valued at $10,070,841.48. The trade was a 11.81% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 52,488 shares of company stock worth $37,242,862. 0.08% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

A number of research firms have weighed in on MCK. Cfra Research downgraded McKesson from a "moderate buy" rating to a "hold" rating in a report on Friday, April 4th. Evercore ISI upped their target price on McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a report on Wednesday, July 9th. Wells Fargo & Company set a $766.00 price target on McKesson and gave the stock an "equal weight" rating in a research note on Tuesday, June 3rd. Wall Street Zen downgraded McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. Finally, Morgan Stanley restated an "overweight" rating and issued a $810.00 price target (up previously from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Three research analysts have rated the stock with a hold rating, eleven have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, McKesson has a consensus rating of "Moderate Buy" and an average target price of $710.17.

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.