McKesson Corporation $MCK Shares Acquired by Quarry LP

Key Points

• Quarry LP increased its stake in McKesson Corporation by 121.0% in the first quarter, holding shares worth approximately $1,029,000 after acquiring an additional 837 shares.
• McKesson recently announced a boosted quarterly dividend of $0.82, up from the previous $0.71, reflecting a dividend yield of 0.5%.
• Despite reporting earnings per share of $8.26, McKesson missed analysts' estimates of $8.33; however, its revenue grew by 23.4% year-over-year to $97.83 billion.

Quarry LP boosted its stake in McKesson Corporation (NYSE:MCK - Free Report) by 121.0% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,529 shares of the company's stock after acquiring an additional 837 shares during the period. Quarry LP's holdings in McKesson were worth $1,029,000 at the end of the most recent reporting period.

Other institutional investors have also recently added to or reduced their stakes in the company. Saudi Central Bank bought a new stake in McKesson during the first quarter valued at $34,000. Connecticut Wealth Management LLC grew its position in McKesson by 0.6% in the 1st quarter. Connecticut Wealth Management LLC now owns 6,171 shares of the company's stock valued at $4,153,000 after buying an additional 38 shares in the last quarter. Baird Financial Group Inc. grew its position in McKesson by 5.9% in the 1st quarter. Baird Financial Group Inc. now owns 36,175 shares of the company's stock valued at $24,345,000 after buying an additional 2,029 shares in the last quarter. Vident Advisory LLC grew its position in McKesson by 172.6% in the 1st quarter. Vident Advisory LLC now owns 9,947 shares of the company's stock valued at $6,695,000 after buying an additional 6,298 shares in the last quarter. Finally, The Manufacturers Life Insurance Company lifted its holdings in McKesson by 0.3% in the 1st quarter. The Manufacturers Life Insurance Company now owns 626,284 shares of the company's stock valued at $421,481,000 after acquiring an additional 2,039 shares during the last quarter. 85.07% of the stock is owned by institutional investors and hedge funds.

McKesson Stock Performance

Shares of MCK opened at $686.44 on Friday. McKesson Corporation has a twelve month low of $464.42 and a twelve month high of $737.89. The firm has a market cap of $85.38 billion, a PE ratio of 27.37, a PEG ratio of 1.36 and a beta of 0.50. The firm's 50 day moving average price is $702.44 and its 200 day moving average price is $687.98.

McKesson (NYSE:MCK - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The company reported $8.26 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 period in the prior year, the business earned $7.88 EPS. The company's revenue for the quarter was up 23.4% compared to the same quarter last year. 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 company also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be paid a $0.82 dividend. 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 is presently 11.32%.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. Bank of America upped their price target on shares of McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a report on Friday, May 9th. Evercore ISI upped their price target on shares of McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Morgan Stanley reissued an "overweight" rating and issued a $810.00 price target (up from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Wells Fargo & Company upped their price target on shares of McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a report on Wednesday, August 13th. Finally, Cowen reissued a "buy" rating on shares of McKesson in a report on Thursday, August 7th. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $725.10.

Insider Buying and Selling at McKesson

In related news, CEO Brian S. Tyler sold 11,930 shares of the company's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the transaction, the chief executive officer owned 4,012 shares in the company, valued at $2,830,987.56. This represents a 74.83% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the company's stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $663.67, for a total transaction of $218,347.43. Following the transaction, the chief accounting officer owned 657 shares in the company, 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. Insiders sold a total of 62,930 shares of company stock worth $44,112,466 in the last 90 days. 0.08% of the stock is owned by corporate insiders.

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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