Lynwood Price Capital Management LP Increases Stock Holdings in McKesson Corporation (NYSE:MCK)

Key Points

• Lynwood Price Capital Management LP increased its shareholding in McKesson Corporation by 73.0%, acquiring an additional 9,200 shares to total 21,800 shares, representing 8.4% of its investment portfolio.
• McKesson recently reported $10.12 EPS for the last quarter, surpassing analysts' expectations of $9.83, with revenue increasing by 18.9% year-over-year.
• The company announced a quarterly dividend increase to $0.82 per share, reflecting a 0.5% dividend yield, with the payment scheduled for October 1st.

Lynwood Price Capital Management LP lifted its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 73.0% in the first quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 21,800 shares of the company's stock after buying an additional 9,200 shares during the quarter. McKesson comprises 8.4% of Lynwood Price Capital Management LP's portfolio, making the stock its 7th biggest holding. Lynwood Price Capital Management LP's holdings in McKesson were worth $14,671,000 as of its most recent SEC filing.

Other institutional investors have also made changes to their positions in the company. CBIZ Investment Advisory Services LLC raised its holdings in McKesson by 1,366.7% during the 1st 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. Capital A Wealth Management LLC bought a new stake in McKesson during the 4th quarter worth about $26,000. Cornerstone Planning Group LLC raised its holdings in McKesson by 1,840.0% during the 1st quarter. Cornerstone Planning Group LLC now owns 97 shares of the company's stock worth $67,000 after purchasing an additional 92 shares during the last quarter. Johnson Financial Group Inc. bought a new stake in McKesson during the 4th quarter worth about $76,000. Finally, Itau Unibanco Holding S.A. raised its holdings in McKesson by 350.0% during the 4th quarter. Itau Unibanco Holding S.A. now owns 144 shares of the company's stock worth $82,000 after purchasing an additional 112 shares during the last quarter. 85.07% of the stock is owned by institutional investors.

Insider Activity

In other McKesson news, CEO Brian S. Tyler sold 19,371 shares of the company's stock in a transaction that occurred on Friday, July 11th. The stock was sold at an average price of $708.09, for a total transaction of $13,716,411.39. Following the completion of the transaction, the chief executive officer owned 27,872 shares of the company's stock, valued at $19,735,884.48. This represents a 41.00% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CAO Napoleon B. Rutledge, Jr. sold 543 shares of the company's stock in a transaction that occurred on Monday, May 19th. The stock was sold at an average price of $726.51, for a total value of $394,494.93. Following the sale, the chief accounting officer owned 1,972 shares in the company, valued at approximately $1,432,677.72. This represents a 21.59% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 52,488 shares of company stock worth $37,242,862. 0.08% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Wall Street Zen cut McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Bank of America upped their price target on McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a research note on Friday, May 9th. Mizuho upped their price target on McKesson from $630.00 to $690.00 and gave the company a "neutral" rating in a research note on Thursday, April 3rd. Morgan Stanley reaffirmed an "overweight" rating and issued a $810.00 price target (up from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Finally, Cfra Research cut McKesson from a "moderate buy" rating to a "hold" rating in a research note on Friday, April 4th. Three research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, McKesson currently has an average rating of "Moderate Buy" and a consensus target price of $710.17.

McKesson Stock Up 0.7%

Shares of MCK traded up $4.89 on Friday, hitting $698.43. The company's stock had a trading volume of 960,996 shares, compared to its average volume of 561,144. The firm's fifty day moving average price is $716.92 and its 200-day moving average price is $674.88. McKesson Corporation has a fifty-two week low of $464.42 and a fifty-two week high of $737.89. The firm has a market capitalization of $87.38 billion, a price-to-earnings ratio of 27.04, a P/E/G ratio of 1.40 and a beta of 0.50.

McKesson (NYSE:MCK - Get Free Report) last released its quarterly earnings results on Thursday, May 8th. The company reported $10.12 earnings per share for the quarter, topping analysts' consensus estimates of $9.83 by $0.29. McKesson had a negative return on equity of 201.12% and a net margin of 0.92%. The firm had revenue of $90.82 billion during the quarter, compared to the consensus estimate of $94 billion. During the same quarter in the prior year, the firm posted $6.18 EPS. The business's revenue was up 18.9% on a year-over-year basis. As a group, equities analysts predict that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd will be given a dividend of $0.82 per share. This is an increase from McKesson's previous quarterly dividend of $0.71. 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%. McKesson's payout ratio is currently 10.99%.

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.