Magnetar Financial LLC Sells 3,359 Shares of McKesson Corporation $MCK

Key Points

• Magnetar Financial LLC has significantly reduced its stake in McKesson Corporation by 72.7%, selling 3,359 shares and now holding just 1,262 shares valued at $849,000.
• McKesson recently reported earnings of $8.26 per share, missing expectations, but its revenue rose 23.4% year-over-year, totaling $97.83 billion.
• The company announced an increase in its quarterly dividend from $0.71 to $0.82 per share, representing an annualized yield of 0.5%.

Magnetar Financial LLC lowered its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 72.7% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 1,262 shares of the company's stock after selling 3,359 shares during the period. Magnetar Financial LLC's holdings in McKesson were worth $849,000 at the end of the most recent reporting period.

Other large investors have also made changes to their positions in the company. GAMMA Investing LLC grew its position in shares of McKesson by 75,632.7% in the 1st 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 McKesson during the first quarter valued at $475,235,000. Farallon Capital Management LLC acquired a new stake in shares of McKesson during the fourth quarter worth $348,044,000. Wellington Management Group LLP lifted its position in shares of McKesson by 4,559.6% in the 1st quarter. Wellington Management Group LLP now owns 427,703 shares of the company's stock worth $287,840,000 after buying an additional 418,524 shares during the last quarter. Finally, Boston Partners lifted its holdings in McKesson by 33.3% in the first quarter. Boston Partners now owns 1,461,785 shares of the company's stock worth $984,927,000 after acquiring an additional 365,484 shares during the last quarter. 85.07% of the stock is owned by hedge funds and other institutional investors.

McKesson Price Performance

McKesson stock traded down $2.29 during midday trading on Friday, reaching $689.17. The stock had a trading volume of 158,489 shares, compared to its average volume of 882,855. The firm has a market cap of $85.72 billion, a price-to-earnings ratio of 27.48, a PEG ratio of 1.37 and a beta of 0.51. The firm's fifty day simple moving average is $699.90 and its two-hundred day simple moving average is $689.91. McKesson Corporation has a twelve month low of $464.42 and a twelve month high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported $8.26 earnings per share for the quarter, missing analysts' consensus estimates of $8.33 by ($0.07). The firm had revenue of $97.83 billion during the quarter, compared to analyst estimates of $95.93 billion. McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.McKesson's quarterly revenue was up 23.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $7.88 earnings per share. As a group, sell-side 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 issued a dividend of $0.82 per share. The ex-dividend date is Tuesday, September 2nd. This is a boost from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 annualized dividend and a dividend yield of 0.5%. McKesson's dividend payout ratio (DPR) is currently 13.08%.

Wall Street Analyst Weigh In

Several research analysts have commented on the stock. Bank of America upped their target price on shares of McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. Evercore ISI boosted their price objective on McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 9th. Cowen restated a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. Wall Street Zen lowered McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Finally, Morgan Stanley reissued an "overweight" rating and issued a $810.00 price target (up previously from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $725.10.

Insider Activity

In other McKesson news, CEO Brian S. Tyler sold 11,930 shares of the firm's stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $705.63, for a total value of $8,418,165.90. Following the transaction, the chief executive officer directly owned 4,012 shares of the company's stock, valued at approximately $2,830,987.56. This trade represents a 74.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the business's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $663.67, for a total value of $218,347.43. Following the completion of the transaction, the chief accounting officer directly owned 657 shares of the company's stock, valued at approximately $436,031.19. The trade was a 33.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 43,560 shares of company stock valued at $30,438,602 in the last 90 days. Corporate insiders own 0.08% of the company's stock.

McKesson 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.