McKesson Corporation $MCK Shares Acquired by Martingale Asset Management L P

Key Points

• Martingale Asset Management L P increased its holdings in McKesson Corporation by 4.8% in Q1, owning approximately 35,986 shares valued at $24.2 million.
• McKesson's stock is up 3.7% and the company recently declared a quarterly dividend increase to $0.82, up from $0.71.
• Despite reporting earnings per share of $8.26 for the last quarter—missing estimates—McKesson's revenue rose by 23.4% year-over-year to $97.83 billion.

Martingale Asset Management L P grew its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 4.8% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 35,986 shares of the company's stock after purchasing an additional 1,655 shares during the period. Martingale Asset Management L P's holdings in McKesson were worth $24,218,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also recently made changes to their positions in MCK. T. Rowe Price Investment Management Inc. boosted its position in McKesson by 8.5% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 2,847,385 shares of the company's stock valued at $1,622,754,000 after buying an additional 222,496 shares during the period. GAMMA Investing LLC boosted its holdings in shares of McKesson by 75,632.7% in the first quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock valued at $1,610,567,000 after purchasing an additional 2,389,992 shares during the period. Northern Trust Corp increased its holdings in McKesson by 0.7% during the 1st quarter. Northern Trust Corp now owns 1,542,382 shares of the company's stock worth $1,038,008,000 after purchasing an additional 10,179 shares during the period. Boston Partners raised its position in McKesson by 33.3% during the 1st quarter. Boston Partners now owns 1,461,785 shares of the company's stock valued at $984,927,000 after purchasing an additional 365,484 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its holdings in shares of McKesson by 9.5% in the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 1,103,050 shares of the company's stock worth $628,639,000 after buying an additional 95,806 shares during the period. 85.07% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have recently commented on MCK. Wells Fargo & Company raised 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. Wall Street Zen lowered shares of McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Cowen reiterated a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. UBS Group boosted their price objective on shares of McKesson from $708.00 to $805.00 and gave the stock a "buy" rating in a research note on Tuesday, April 29th. Finally, Evercore ISI increased their target price on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, McKesson has a consensus rating of "Moderate Buy" and a consensus target price of $725.10.

Insider Activity

In other news, CFO Britt J. Vitalone sold 1,878 shares of the company's stock in a transaction on Wednesday, May 28th. The shares were sold at an average price of $717.91, for a total value of $1,348,234.98. Following the sale, the chief financial officer directly owned 14,028 shares of the company's stock, valued at $10,070,841.48. This represents a 11.81% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the company's stock in a transaction on 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 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. Over the last three months, insiders have sold 56,620 shares of company stock valued at $39,712,388. 0.08% of the stock is owned by insiders.

McKesson Stock Down 2.6%

Shares of McKesson stock traded down $18.2950 during trading on Friday, reaching $687.7050. The company's stock had a trading volume of 1,217,333 shares, compared to its average volume of 950,293. McKesson Corporation has a 1-year low of $464.42 and a 1-year high of $737.89. The company has a 50-day simple moving average of $706.69 and a two-hundred day simple moving average of $685.15. The company has a market cap of $85.54 billion, a price-to-earnings ratio of 27.42, a P/E/G ratio of 1.37 and a beta of 0.50.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly 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 business had revenue of $97.83 billion for 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%.McKesson's revenue was up 23.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $7.88 EPS. As a group, analysts anticipate that McKesson Corporation will post 32.77 earnings per share for the current 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 $0.82 dividend. The ex-dividend date is Tuesday, September 2nd. This is a positive change from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 annualized dividend and a dividend yield of 0.5%. McKesson's dividend payout ratio (DPR) 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.