Lord Abbett & CO. LLC Buys 946 Shares of McKesson Corporation $MCK

Key Points

• Lord Abbett & CO. LLC has increased its stake in McKesson Corporation by 1.1%, owning 83,947 shares valued at approximately $56.5 million as of the end of the first quarter.
• McKesson recently declared a quarterly dividend increase from $0.71 to $0.82 per share, with a payment date set for October 1st.
• The company's latest quarterly earnings report showed a revenue of $97.83 billion, exceeding analysts' expectations, though it slightly missed EPS estimates.

Lord Abbett & CO. LLC grew its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 1.1% in the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 83,947 shares of the company's stock after buying an additional 946 shares during the quarter. Lord Abbett & CO. LLC owned 0.07% of McKesson worth $56,495,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. Capital A Wealth Management LLC acquired a new position in shares of McKesson during the fourth quarter valued at about $26,000. Bank of Jackson Hole Trust lifted its position in shares of McKesson by 64.3% during the first quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock valued at $29,000 after purchasing an additional 18 shares in the last quarter. CBIZ Investment Advisory Services LLC lifted its position in shares of McKesson by 1,366.7% during the first 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 in the last quarter. Pandora Wealth Inc. bought a new position in shares of McKesson during the first quarter valued at about $40,000. Finally, Dagco Inc. bought a new position in shares of McKesson during the first quarter valued at about $47,000. 85.07% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Bank of America raised their price target on shares of McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a research report on Friday, May 9th. Morgan Stanley reaffirmed an "overweight" rating and issued a $810.00 price objective (up previously from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. Evercore ISI lifted their price objective on shares of McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 9th. Wall Street Zen lowered shares of McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Finally, Cowen reaffirmed a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $719.27.

McKesson Stock Performance

NYSE:MCK traded up $5.07 during midday trading on Tuesday, reaching $676.26. 313,957 shares of the stock traded hands, compared to its average volume of 887,845. The company has a fifty day moving average of $708.83 and a 200 day moving average of $683.20. McKesson Corporation has a 12 month low of $464.42 and a 12 month high of $737.89. The stock has a market capitalization of $84.11 billion, a P/E ratio of 26.99, a PEG ratio of 1.34 and a beta of 0.50.

McKesson (NYSE:MCK - Get Free Report) last posted 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 firm had revenue of $97.83 billion for the quarter, compared to the consensus estimate of $95.93 billion. During the same quarter in the prior year, the company earned $7.88 earnings per share. The company's quarterly revenue was up 23.4% compared to the same quarter last year. On average, analysts predict that McKesson Corporation will post 32.77 EPS for the current fiscal year.

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be given 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 dividend yield of 0.5%. This is a boost from McKesson's previous quarterly dividend of $0.71. McKesson's payout ratio is currently 11.32%.

Insider Activity at McKesson

In other McKesson news, CEO Brian S. Tyler sold 11,930 shares of the firm's stock in a transaction dated Friday, August 15th. The shares were sold at an average price of $677.76, for a total transaction of $8,085,676.80. Following the completion of the sale, the chief executive officer directly owned 15,942 shares in the company, valued at approximately $10,804,849.92. This trade represents a 42.80% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Thomas L. Rodgers sold 2,891 shares of the firm's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $712.18, for a total transaction of $2,058,912.38. Following the sale, the executive vice president owned 2,544 shares of the company's stock, valued at approximately $1,811,785.92. This represents a 53.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 64,204 shares of company stock worth $45,152,392 in the last ninety days. 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.