McKesson Corporation $MCK is Lakewood Asset Management LLC's 6th Largest Position

Key Points

• Lakewood Asset Management LLC reduced its position in McKesson Corporation by 35.2%, making it the firm's 6th largest holding, valued at approximately $4.77 million.
• Analysts have increased their price targets for McKesson, with ratings varying from "equal weight" to "buy," leading to a consensus target price of $829.08.
• McKesson recently declared a quarterly dividend increase to $0.82, representing a 0.4% yield, up from the previous $0.71 per share.

Lakewood Asset Management LLC decreased its position in McKesson Corporation (NYSE:MCK - Free Report) by 35.2% in the 2nd quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 6,505 shares of the company's stock after selling 3,531 shares during the period. McKesson accounts for 3.2% of Lakewood Asset Management LLC's investment portfolio, making the stock its 6th biggest holding. Lakewood Asset Management LLC's holdings in McKesson were worth $4,767,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently modified their holdings of the stock. Nuveen LLC purchased a new stake in McKesson in the 1st quarter worth approximately $475,235,000. Wellington Management Group LLP raised its position in shares of McKesson by 4,559.6% during the 1st quarter. Wellington Management Group LLP now owns 427,703 shares of the company's stock valued at $287,840,000 after buying an additional 418,524 shares in the last quarter. Boston Partners grew its stake in shares of McKesson by 33.3% during the first quarter. Boston Partners now owns 1,461,785 shares of the company's stock valued at $984,927,000 after buying an additional 365,484 shares during the last quarter. Voya Investment Management LLC grew its stake in shares of McKesson by 92.3% during the first quarter. Voya Investment Management LLC now owns 650,851 shares of the company's stock valued at $437,760,000 after buying an additional 312,473 shares during the last quarter. Finally, 1832 Asset Management L.P. bought a new position in shares of McKesson during the first quarter valued at about $140,742,000. 85.07% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Wells Fargo & Company raised their price target on shares of McKesson from $772.00 to $816.00 and gave the stock an "equal weight" rating in a report on Wednesday. JPMorgan Chase & Co. upped their target price on shares of McKesson from $821.00 to $853.00 and gave the stock an "overweight" rating in a research note on Friday. UBS Group boosted their price objective on shares of McKesson from $820.00 to $860.00 and gave the company a "buy" rating in a report on Wednesday. TD Cowen boosted their price objective on shares of McKesson from $830.00 to $864.00 and gave the company a "buy" rating in a report on Wednesday. Finally, Deutsche Bank Aktiengesellschaft upped their target price on shares of McKesson from $775.00 to $856.00 and gave the company a "buy" rating in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have assigned a Hold rating to the company's stock. Based on data from MarketBeat, McKesson presently has an average rating of "Moderate Buy" and a consensus price target of $829.08.

McKesson Trading Up 3.3%

Shares of MCK opened at $760.82 on Friday. McKesson Corporation has a twelve month low of $479.15 and a twelve month high of $770.00. The company has a market cap of $94.63 billion, a P/E ratio of 30.34, a P/E/G ratio of 1.36 and a beta of 0.51. The company's fifty day simple moving average is $697.79 and its 200-day simple moving average is $699.59.

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 the consensus estimate of $8.33 by ($0.07). The company had revenue of $97.83 billion during the quarter, compared to analysts' expectations of $95.93 billion. McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.The company's quarterly revenue was up 23.4% on a year-over-year basis. During the same period in the prior year, the business earned $7.88 EPS. Analysts predict 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. Investors of record on Tuesday, September 2nd will be paid a $0.82 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $3.28 annualized dividend and a yield of 0.4%. This is a boost from McKesson's previous quarterly dividend of $0.71. McKesson's payout ratio is 13.08%.

Insider Transactions at McKesson

In other news, CEO Brian S. Tyler sold 19,371 shares of the firm's stock in a transaction dated Friday, July 11th. The shares were sold at an average price of $708.09, for a total value of $13,716,411.39. Following the sale, the chief executive officer directly owned 27,872 shares in the company, valued at approximately $19,735,884.48. This trade represents a 41.00% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the firm's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $663.67, for a total transaction of $218,347.43. Following the completion of the sale, the chief accounting officer owned 657 shares in the company, valued at $436,031.19. This represents a 33.37% decrease in their ownership of the stock. 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 three months. 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.

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