Intech Investment Management LLC Increases Stock Position in McKesson Corporation $MCK

Key Points

• Intech Investment Management LLC increased its stake in McKesson Corporation by 39.8%, now owning 41,702 shares valued at approximately $28 million.
• CEO Brian S. Tyler sold nearly 12,000 shares for over $8.4 million, significantly reducing his ownership by 74.83%.
• McKesson announced an increased quarterly dividend of $0.82, up from $0.71, reflecting a yield of 0.5% with a demand for dividends growing in the current market.

Intech Investment Management LLC grew its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 39.8% in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 41,702 shares of the company's stock after purchasing an additional 11,881 shares during the quarter. Intech Investment Management LLC's holdings in McKesson were worth $28,065,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds also recently made changes to their positions in the company. CVA Family Office LLC grew its stake in shares of McKesson by 6.0% in the 1st quarter. CVA Family Office LLC now owns 265 shares of the company's stock valued at $178,000 after purchasing an additional 15 shares during the last quarter. Palisade Asset Management LLC grew its position in McKesson by 2.1% during the first quarter. Palisade Asset Management LLC now owns 715 shares of the company's stock valued at $481,000 after acquiring an additional 15 shares during the period. SteelPeak Wealth LLC boosted its position in shares of McKesson by 0.5% in the first quarter. SteelPeak Wealth LLC now owns 2,771 shares of the company's stock worth $1,867,000 after buying an additional 15 shares during the period. Parallel Advisors LLC increased its holdings in McKesson by 0.6% during the 1st 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 raised 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 valued at $3,229,000 after buying an additional 17 shares in the last quarter. 85.07% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

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

Insider Transactions at McKesson

In other news, CEO Brian S. Tyler sold 19,371 shares of McKesson stock in a transaction dated 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 completion of the transaction, the chief executive officer directly owned 27,872 shares in the company, valued at $19,735,884.48. This trade represents a 41.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the business'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 ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 43,560 shares of company stock valued at $30,438,602 over the last quarter. Corporate insiders own 0.08% of the company's stock.

McKesson Stock Performance

Shares of NYSE MCK traded down $8.48 during trading hours on Friday, hitting $711.32. 522,385 shares of the stock were exchanged, compared to its average volume of 704,488. McKesson Corporation has a 1-year low of $464.42 and a 1-year high of $737.89. The company has a market cap of $88.47 billion, a PE ratio of 28.36, a price-to-earnings-growth ratio of 1.43 and a beta of 0.51. The company's fifty day simple moving average is $697.81 and its two-hundred day simple moving average is $693.98.

McKesson (NYSE:MCK - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share for the quarter, missing analysts' consensus estimates of $8.33 by ($0.07). The company 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 business's quarterly revenue was up 23.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $7.88 EPS. As a group, sell-side analysts expect that McKesson Corporation will post 32.77 EPS 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 paid a $0.82 dividend. This represents a $3.28 annualized dividend and a yield of 0.5%. This is an increase from McKesson's previous quarterly dividend of $0.71. The ex-dividend date of this dividend is Tuesday, September 2nd. McKesson's payout ratio is presently 13.08%.

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.