LGT Group Foundation Takes Position in McKesson Corporation (NYSE:MCK)

Key Points

• The LGT Group Foundation invested approximately $9.64 million in McKesson Corporation, purchasing 14,325 shares in the first quarter.
• McKesson reported a quarterly revenue of $97.83 billion, exceeding estimates, though its earnings per share of $8.26 fell short of the consensus by $0.07.
• The company announced an increase in its quarterly dividend from $0.71 to $0.82 per share, with the next payment scheduled for October 1st.

LGT Group Foundation bought a new stake in shares of McKesson Corporation (NYSE:MCK - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund bought 14,325 shares of the company's stock, valued at approximately $9,641,000.

A number of other hedge funds have also recently modified their holdings of MCK. CBIZ Investment Advisory Services LLC lifted its stake 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 acquiring an additional 41 shares during the period. Capital A Wealth Management LLC bought a new position in McKesson during the 4th quarter valued at about $26,000. Bank of Jackson Hole Trust lifted its stake in 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 during the period. Pandora Wealth Inc. bought a new position in McKesson during the 1st quarter valued at about $40,000. Finally, Cornerstone Planning Group LLC lifted its stake 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 acquiring an additional 92 shares during the period. Institutional investors own 85.07% of the company's stock.

Insider Buying and Selling

In other McKesson news, EVP Thomas L. Rodgers sold 2,891 shares of the company's stock in a transaction that occurred on Friday, May 30th. The stock was sold at an average price of $712.18, for a total value of $2,058,912.38. Following the completion of the transaction, the executive vice president directly owned 2,544 shares in the company, valued at $1,811,785.92. This represents a 53.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Britt J. Vitalone sold 1,878 shares of the company's stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $717.91, for a total value of $1,348,234.98. Following the completion of the transaction, the chief financial officer owned 14,028 shares of the company's stock, valued at $10,070,841.48. The trade was a 11.81% 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 worth $37,461,210 in the last ninety days. Corporate insiders own 0.08% of the company's stock.

McKesson Trading Up 1.7%

McKesson stock traded up $11.36 during midday trading on Thursday, hitting $674.53. The stock had a trading volume of 669,749 shares, compared to its average volume of 870,451. The firm's fifty day moving average is $710.37 and its two-hundred day moving average is $681.11. The company has a market capitalization of $83.90 billion, a PE ratio of 26.90, a P/E/G ratio of 1.32 and a beta of 0.50. McKesson Corporation has a 52-week low of $464.42 and a 52-week 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 the consensus estimate of $8.33 by ($0.07). The firm had revenue of $97.83 billion during the quarter, compared to analysts' expectations of $95.93 billion. McKesson had a negative return on equity of 196.66% and a net margin of 0.84%. The company's revenue was up 23.4% compared to the same quarter last year. During the same period in the prior year, the company posted $7.88 earnings per share. As a group, equities research analysts predict that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors 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 annualized dividend and a yield of 0.5%. This is a positive change from McKesson's previous quarterly dividend of $0.71. McKesson's payout ratio is currently 11.32%.

Analysts Set New Price Targets

Several research firms have issued reports on MCK. UBS Group upped their target price on shares of McKesson from $708.00 to $805.00 and gave the company a "buy" rating in a research note on Tuesday, April 29th. Morgan Stanley restated an "overweight" rating and set a $810.00 target price (up previously from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Bank of America upped their target price on shares of McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a research note on Friday, May 9th. Cowen restated a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. Finally, Wall Street Zen lowered shares of McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Three research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $719.27.

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.