McKesson Corporation $MCK Position Trimmed by Kayne Anderson Rudnick Investment Management LLC

Key Points

• Kayne Anderson Rudnick Investment Management LLC reduced its stake in McKesson Corporation by 6.6%, selling 929 shares and holding 13,177 shares valued at approximately $8.87 million.
• McKesson recently announced a quarterly dividend of $0.82, up from the previous $0.71, indicating a 0.5% yield, to be paid on October 1st.
• Several large institutional investors have increased their positions, with ICONIQ Capital LLC leading at a 23.7% increase during the first quarter.

Kayne Anderson Rudnick Investment Management LLC decreased its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 6.6% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The fund owned 13,177 shares of the company's stock after selling 929 shares during the period. Kayne Anderson Rudnick Investment Management LLC's holdings in McKesson were worth $8,868,000 as of its most recent filing with the SEC.

Several other large investors have also modified their holdings of the stock. Capital A Wealth Management LLC bought a new position in McKesson during the fourth quarter worth $26,000. Bank of Jackson Hole Trust lifted its stake in McKesson by 64.3% during the first quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock worth $29,000 after purchasing an additional 18 shares during the last quarter. CBIZ Investment Advisory Services LLC lifted its stake in McKesson by 1,366.7% during the first quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock worth $30,000 after purchasing an additional 41 shares during the last quarter. Pandora Wealth Inc. bought a new position in McKesson during the first quarter worth $40,000. Finally, Dagco Inc. bought a new position in McKesson during the first quarter worth $47,000. Institutional investors own 85.07% of the company's stock.

Analysts Set New Price Targets

Several brokerages recently issued reports on MCK. Cowen restated a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. Evercore ISI raised their target price on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a research note on Wednesday, July 9th. Wall Street Zen cut McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. Wells Fargo & Company raised their target price on McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 13th. Finally, Morgan Stanley reiterated an "overweight" rating and issued a $810.00 target price (up from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $725.10.

Insider Transactions at McKesson

In related news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of McKesson stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $663.67, for a total value of $218,347.43. Following the transaction, the chief accounting officer owned 657 shares of the company's stock, valued at approximately $436,031.19. This trade represents a 33.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Brian S. Tyler sold 19,371 shares of McKesson stock in a transaction dated Friday, July 11th. The stock was sold at an average price of $708.09, for a total value of $13,716,411.39. Following the completion of the transaction, the chief executive officer directly owned 27,872 shares in the company, valued at $19,735,884.48. This represents a 41.00% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 62,930 shares of company stock worth $44,112,466 in the last three months. 0.08% of the stock is currently owned by company insiders.

McKesson Trading Up 0.8%

NYSE:MCK traded up $5.42 during mid-day trading on Friday, reaching $686.44. 880,317 shares of the stock were exchanged, compared to its average volume of 891,772. The business has a fifty day moving average price of $703.12 and a 200 day moving average price of $686.81. The firm has a market capitalization of $85.38 billion, a PE ratio of 27.37, a PEG ratio of 1.36 and a beta of 0.50. McKesson Corporation has a 1-year low of $464.42 and a 1-year high of $737.89.

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

McKesson Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be paid 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 an increase from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio (DPR) is 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.