Lockheed Martin Investment Management Co. Purchases New Position in McKesson Corporation (NYSE:MCK)

Key Points

• Lockheed Martin Investment Management Co. acquired 12,100 shares of McKesson Corporation valued at approximately $8.14 million in the first quarter, indicating institutional interest in the stock.
• McKesson recently announced an increase in its quarterly dividend from $0.71 to $0.82, demonstrating a commitment to returning value to shareholders.
• Despite reporting earnings of $8.26 per share that missed estimates, McKesson's revenue was up 23.4% year-over-year, reaching $97.83 billion.

Lockheed Martin Investment Management Co. bought a new stake in McKesson Corporation (NYSE:MCK - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 12,100 shares of the company's stock, valued at approximately $8,143,000.

Other hedge funds have also recently added to or reduced their stakes in the company. GAMMA Investing LLC increased 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 worth $1,610,567,000 after acquiring an additional 2,389,992 shares in the last quarter. Nuveen LLC bought a new stake in shares of McKesson in the first quarter worth about $475,235,000. Farallon Capital Management LLC bought a new stake in shares of McKesson in the fourth quarter worth about $348,044,000. Marshall Wace LLP increased its holdings in shares of McKesson by 59,720.3% in the fourth quarter. Marshall Wace LLP now owns 358,922 shares of the company's stock worth $204,553,000 after acquiring an additional 358,322 shares in the last quarter. Finally, Leigh Baldwin & CO. LLC bought a new stake in shares of McKesson in the fourth quarter worth about $182,861,000. Institutional investors and hedge funds own 85.07% of the company's stock.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on the company. Cowen reiterated a "buy" rating on shares of McKesson in a report on Thursday, August 7th. Morgan Stanley reiterated an "overweight" rating and set a $810.00 price objective (up from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Wells Fargo & Company set a $766.00 price objective on McKesson and gave the stock an "equal weight" rating in a report on Tuesday, June 3rd. Bank of America increased their price objective on McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a report on Friday, May 9th. Finally, Wall Street Zen downgraded McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Three research 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 company's stock. According to data from MarketBeat, McKesson presently has an average rating of "Moderate Buy" and an average price target of $718.73.

McKesson Trading Down 2.1%

Shares of MCK traded down $13.99 on Tuesday, reaching $658.78. 1,644,064 shares of the company's stock traded hands, compared to its average volume of 798,322. The stock has a market cap of $81.94 billion, a PE ratio of 26.27, a PEG ratio of 1.34 and a beta of 0.50. The stock's 50 day simple moving average is $712.03 and its two-hundred day simple moving average is $680.75. 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 issued its quarterly earnings results on Wednesday, August 6th. The company reported $8.26 EPS for the quarter, missing analysts' consensus estimates of $8.33 by ($0.07). McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The business had revenue of $97.83 billion for the quarter, compared to analysts' expectations of $95.93 billion. During the same period in the previous year, the business posted $7.88 earnings per share. The business's revenue was up 23.4% compared to the same quarter last year. 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. Stockholders 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 is an increase from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.5%. McKesson's dividend payout ratio is 11.32%.

Insider Transactions at McKesson

In other news, CEO Brian S. Tyler sold 19,371 shares of the firm's stock in a transaction on 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 of the company's stock, valued at $19,735,884.48. This trade represents a 41.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Leann B. Smith sold 1,248 shares of the firm's stock in a transaction on Thursday, May 22nd. The stock was sold at an average price of $717.30, for a total value of $895,190.40. Following the completion of the transaction, the executive vice president directly owned 2,621 shares of the company's stock, valued at $1,880,043.30. The trade was a 32.26% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 52,817 shares of company stock valued at $37,461,210. 0.08% of the stock is currently owned by company insiders.

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.