McKesson Corporation $MCK Shares Purchased by Raymond James Financial Inc.

Key Points

• Raymond James Financial Inc. increased its stake in McKesson Corporation by 11.6%, acquiring a total of 250,821 shares worth approximately $168.8 million.
• Analysts have raised their price targets for McKesson, with Evercore ISI setting a new target at $800, while UBS Group increased theirs to $805, reflecting strong confidence in the stock.
• McKesson announced a quarterly dividend increase to $0.82 per share, up from $0.71, with a dividend yield of 0.5%, set to be paid on October 1st.

Raymond James Financial Inc. grew its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 11.6% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 250,821 shares of the company's stock after acquiring an additional 26,004 shares during the quarter. Raymond James Financial Inc. owned about 0.20% of McKesson worth $168,800,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently modified their holdings of the company. CVA Family Office LLC boosted its stake in shares of McKesson by 6.0% during the 1st quarter. CVA Family Office LLC now owns 265 shares of the company's stock valued at $178,000 after buying an additional 15 shares during the last quarter. Palisade Asset Management LLC lifted its stake in McKesson by 2.1% during the first quarter. Palisade Asset Management LLC now owns 715 shares of the company's stock worth $481,000 after purchasing an additional 15 shares during the last quarter. SteelPeak Wealth LLC lifted its stake in McKesson by 0.5% during the first quarter. SteelPeak Wealth LLC now owns 2,771 shares of the company's stock worth $1,867,000 after purchasing an additional 15 shares during the last quarter. Parallel Advisors LLC lifted its stake in McKesson by 0.6% during the first quarter. Parallel Advisors LLC now owns 2,501 shares of the company's stock worth $1,683,000 after purchasing an additional 16 shares during the last quarter. Finally, Eagle Rock Investment Company LLC lifted its stake in McKesson by 0.4% during the first quarter. Eagle Rock Investment Company LLC now owns 4,798 shares of the company's stock worth $3,229,000 after purchasing an additional 17 shares during the last quarter. Institutional investors and hedge funds own 85.07% of the company's stock.

Wall Street Analysts Forecast Growth

MCK has been the topic of several research analyst reports. Wall Street Zen cut McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. UBS Group raised their price objective on McKesson from $708.00 to $805.00 and gave the stock a "buy" rating in a research note on Tuesday, April 29th. Cowen restated a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. Bank of America raised their price objective on McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. Finally, Morgan Stanley restated an "overweight" rating and set a $810.00 price objective (up from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. One research 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 company. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $725.10.

Insider Activity at McKesson

In other news, EVP Thomas L. Rodgers sold 2,891 shares of the firm's stock in a transaction on Friday, May 30th. The stock was sold at an average price of $712.18, for a total transaction of $2,058,912.38. Following the transaction, the executive vice president directly owned 2,544 shares of the company's stock, valued at approximately $1,811,785.92. This trade represents a 53.19% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of McKesson stock in a transaction dated 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 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. In the last three months, insiders sold 56,620 shares of company stock valued at $39,712,388. 0.08% of the stock is owned by corporate insiders.

McKesson Price Performance

Shares of MCK traded down $18.2950 during trading hours on Friday, reaching $687.7050. 944,782 shares of the company's stock traded hands, compared to its average volume of 889,684. The firm has a market capitalization of $85.54 billion, a price-to-earnings ratio of 27.42, a P/E/G ratio of 1.40 and a beta of 0.50. McKesson Corporation has a twelve month low of $464.42 and a twelve month high of $737.89. The business's fifty day simple moving average is $707.48 and its two-hundred day simple moving average is $684.02.

McKesson (NYSE:MCK - Get Free Report) last issued 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). The business had revenue of $97.83 billion for 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%. McKesson's revenue for the quarter was up 23.4% on a year-over-year basis. During the same period last year, the business posted $7.88 earnings per share. On average, equities research analysts expect that McKesson Corporation will post 32.77 EPS for the current year.

McKesson Increases Dividend

The firm also recently declared 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. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.5%. 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. McKesson's dividend payout ratio is 11.32%.

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.