Goldman Sachs Group Inc. Sells 6,688 Shares of McKesson Corporation $MCK

Key Points

• Goldman Sachs reduced its stake in McKesson Corporation by 0.9%, now owning approximately 0.60% of the company, equating to around $508 million.
• Recent insider transactions include CAO Napoleon B. Rutledge, Jr. selling 329 shares and CEO Brian S. Tyler selling 11,930 shares, resulting in significant decreases in their ownership positions.
• McKesson has declared an increase in its quarterly dividend to $0.82 per share, up from $0.71, with a current dividend yield of 0.5% and a payout ratio of 13.08%.

Goldman Sachs Group Inc. lowered its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 0.9% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The fund owned 755,144 shares of the company's stock after selling 6,688 shares during the period. Goldman Sachs Group Inc. owned approximately 0.60% of McKesson worth $508,204,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in MCK. Brighton Jones LLC boosted its holdings in McKesson by 46.3% during the fourth quarter. Brighton Jones LLC now owns 2,523 shares of the company's stock worth $1,438,000 after buying an additional 798 shares during the last quarter. Cary Street Partners Financial LLC bought a new position in shares of McKesson during the 4th quarter valued at about $108,000. Ethic Inc. lifted its holdings in shares of McKesson by 43.0% during the 4th quarter. Ethic Inc. now owns 5,042 shares of the company's stock valued at $2,874,000 after purchasing an additional 1,516 shares in the last quarter. Graham Capital Management L.P. lifted its holdings in shares of McKesson by 57.9% during the 4th quarter. Graham Capital Management L.P. now owns 3,971 shares of the company's stock valued at $2,263,000 after purchasing an additional 1,456 shares in the last quarter. Finally, Jefferies Financial Group Inc. lifted its holdings in shares of McKesson by 48.6% during the 4th quarter. Jefferies Financial Group Inc. now owns 12,626 shares of the company's stock valued at $7,196,000 after purchasing an additional 4,131 shares in the last quarter. Institutional investors own 85.07% of the company's stock.

Analyst Upgrades and Downgrades

MCK has been the topic of several recent analyst reports. Wall Street Zen cut McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Morgan Stanley reiterated an "overweight" rating and set a $810.00 price objective (up previously from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Wells Fargo & Company lifted their price objective on McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a report on Wednesday, August 13th. Evercore ISI lifted their price objective on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Finally, Cowen reissued a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $725.10.

Insider Activity at McKesson

In other McKesson news, CEO Brian S. Tyler sold 19,371 shares of the business'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 transaction, the chief executive officer owned 27,872 shares of the company's stock, valued at $19,735,884.48. The trade was a 41.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the business's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $663.67, for a total value of $218,347.43. Following the transaction, the chief accounting officer directly owned 657 shares in the company, valued at $436,031.19. This trade represents a 33.37% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 43,560 shares of company stock worth $30,438,602 in the last ninety days. Insiders own 0.08% of the company's stock.

McKesson Stock Performance

McKesson stock traded down $8.48 during midday trading on Friday, reaching $711.32. The stock had a trading volume of 522,385 shares, compared to its average volume of 704,488. The firm's fifty day simple moving average is $697.81 and its 200-day simple moving average is $694.47. McKesson Corporation has a 1-year low of $464.42 and a 1-year high of $737.89. The stock has a market capitalization of $88.48 billion, a P/E ratio of 28.36, a price-to-earnings-growth ratio of 1.43 and a beta of 0.51.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share (EPS) 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 net margin of 0.84% and a negative return on equity of 196.66%. The firm's quarterly revenue was up 23.4% compared to the same quarter last year. During the same period in the prior year, the business posted $7.88 EPS. On average, sell-side analysts anticipate that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The business 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 a positive change 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 annualized dividend and a dividend yield of 0.5%. McKesson's payout ratio is presently 13.08%.

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.