King Luther Capital Management Corp Purchases 873 Shares of McKesson Corporation (NYSE:MCK)

Key Points

• King Luther Capital Management Corp increased its stake in McKesson Corporation by 2.8%, owning 32,045 shares valued at approximately $21.57 million after acquiring an additional 873 shares.
• McKesson announced a quarterly dividend increase, raising the payout from $0.71 to $0.82, with a yield of 0.5% for investors of record as of September 2nd.
• Despite reporting an EPS of $8.26, McKesson missed analysts' expectations of $8.33, though its revenue exceeded forecasts at $97.83 billion.

King Luther Capital Management Corp lifted its position in shares of McKesson Corporation (NYSE:MCK - Free Report) by 2.8% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 32,045 shares of the company's stock after acquiring an additional 873 shares during the quarter. King Luther Capital Management Corp's holdings in McKesson were worth $21,566,000 at the end of the most recent reporting period.

Other hedge funds also recently modified their holdings of the company. CBIZ Investment Advisory Services LLC boosted its holdings in shares of 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 acquiring an additional 41 shares in the last quarter. Capital A Wealth Management LLC acquired a new stake in shares of McKesson during the 4th quarter valued at $26,000. Bank of Jackson Hole Trust boosted its holdings in shares of McKesson by 64.3% during the 1st quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock valued at $29,000 after acquiring an additional 18 shares in the last quarter. Pandora Wealth Inc. acquired a new stake in shares of McKesson during the 1st quarter valued at $40,000. Finally, Cornerstone Planning Group LLC boosted its holdings in shares of 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 acquiring an additional 92 shares in the last quarter. Institutional investors and hedge funds own 85.07% of the company's stock.

Insiders Place Their Bets

In other news, CFO Britt J. Vitalone sold 1,878 shares of McKesson 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 $1,348,234.98. Following the completion of the transaction, the chief financial officer directly owned 14,028 shares in the company, valued at approximately $10,070,841.48. This trade represents a 11.81% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Leann B. Smith sold 341 shares of McKesson 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 transaction, the executive vice president owned 2,800 shares of the company's stock, valued at $2,010,148. The trade was a 10.86% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 52,817 shares of company stock valued at $37,461,210 over the last ninety days. 0.08% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on MCK shares. Evercore ISI raised their price objective on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Wells Fargo & Company set a $766.00 target price on McKesson and gave the stock an "equal weight" rating in a research report on Tuesday, June 3rd. Bank of America raised their target price on McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. Morgan Stanley reaffirmed an "overweight" rating and set a $810.00 target price (up from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. Finally, Cowen reissued a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. 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 MarketBeat, McKesson has a consensus rating of "Moderate Buy" and an average price target of $718.73.

McKesson Price Performance

MCK traded down $13.99 on Tuesday, hitting $658.78. The company had a trading volume of 1,644,064 shares, compared to its average volume of 798,322. McKesson Corporation has a 52-week low of $464.42 and a 52-week high of $737.89. The stock has a fifty day simple moving average of $712.03 and a 200-day simple moving average of $680.75. The firm has a market capitalization of $81.94 billion, a P/E ratio of 26.27, a P/E/G ratio of 1.34 and a beta of 0.50.

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

McKesson Increases Dividend

The business 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. This represents a $3.28 annualized dividend and a yield of 0.5%. This is a boost from McKesson's previous quarterly dividend of $0.71. The ex-dividend date is Tuesday, September 2nd. McKesson's dividend payout ratio (DPR) is 11.32%.

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.