McKesson Corporation $MCK is Scharf Investments LLC's Largest Position

Key Points

• Scharf Investments LLC has reduced its stake in McKesson Corporation by 8.5%, now holding approximately 348,429 shares, which constitutes the largest position in its portfolio at about 7.4%.
• McKesson recently announced a quarterly dividend of $0.82 per share, an increase from the previous $0.71, reflecting a dividend yield of 0.5%.
• The company reported earnings of $8.26 per share for the latest quarter, missing estimates, despite revenues reaching $97.83 billion, a 23.4% year-over-year increase.

Scharf Investments LLC lowered its position in McKesson Corporation (NYSE:MCK - Free Report) by 8.5% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 348,429 shares of the company's stock after selling 32,521 shares during the quarter. McKesson makes up approximately 7.4% of Scharf Investments LLC's portfolio, making the stock its biggest position. Scharf Investments LLC owned about 0.28% of McKesson worth $255,333,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Capital A Wealth Management LLC purchased a new stake in McKesson in the fourth quarter worth $26,000. Bank of Jackson Hole Trust lifted its position in shares of McKesson by 64.3% during the 1st quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock valued at $29,000 after buying an additional 18 shares in the last quarter. CBIZ Investment Advisory Services LLC lifted its holdings in McKesson by 1,366.7% in 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 in the last quarter. Saudi Central Bank bought a new stake in McKesson in the 1st quarter worth approximately $34,000. Finally, Flaharty Asset Management LLC bought a new stake in McKesson in the 1st quarter worth approximately $39,000. Institutional investors own 85.07% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on MCK shares. Cowen restated a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. Evercore ISI lifted their price target on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. Wall Street Zen downgraded McKesson from a "buy" rating to a "hold" rating in a research note on Saturday. Morgan Stanley restated an "overweight" rating and issued a $810.00 target price (up from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Finally, Wells Fargo & Company upped their price target on McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 13th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, McKesson presently has a consensus rating of "Moderate Buy" and a consensus price target of $725.10.

McKesson Price Performance

MCK stock opened at $698.07 on Monday. The company has a 50-day moving average of $695.15 and a two-hundred day moving average of $696.81. McKesson Corporation has a 52-week low of $464.42 and a 52-week high of $737.89. The stock has a market capitalization of $86.83 billion, a price-to-earnings ratio of 27.83, a price-to-earnings-growth ratio of 1.39 and a beta of 0.51.

McKesson (NYSE:MCK - Get Free Report) last posted 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). 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 during the quarter, compared to the consensus estimate of $95.93 billion. During the same quarter last year, the firm posted $7.88 EPS. The business's revenue was up 23.4% on a year-over-year basis. Equities analysts expect that McKesson Corporation will post 32.77 EPS for the current fiscal year.

McKesson Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be paid a dividend of $0.82 per share. The ex-dividend date is Tuesday, September 2nd. This represents a $3.28 annualized dividend and a dividend yield of 0.5%. This is a boost from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio (DPR) is presently 13.08%.

Insider Transactions at McKesson

In other McKesson news, CEO Brian S. Tyler sold 19,371 shares of the stock in a transaction that occurred on Friday, July 11th. The shares were 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 in the company, valued at $19,735,884.48. This represents a 41.00% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the company'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 transaction of $218,347.43. Following the sale, the chief accounting officer directly owned 657 shares of the company's stock, valued at approximately $436,031.19. This trade represents a 33.37% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 43,560 shares of company stock worth $30,438,602. 0.08% of the stock is 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.

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