Wedge Capital Management L L P NC Has $32.29 Million Stake in McKesson Corporation $MCK

Key Points

• Wedge Capital Management L L P NC reduced its holdings in McKesson Corporation by 9.2%, owning 44,062 shares valued at approximately $32.29 million after selling 4,453 shares in the second quarter.
• The quarterly dividend has been increased from $0.71 to $0.82, with a dividend yield of 0.5%, reflecting positive financial performance despite a recent earnings miss.
• Analysts have varying ratings on McKesson, with a current consensus rating of "Moderate Buy" and a target price around $725.10.

Wedge Capital Management L L P NC reduced its position in shares of McKesson Corporation (NYSE:MCK - Free Report) by 9.2% during the second quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 44,062 shares of the company's stock after selling 4,453 shares during the quarter. Wedge Capital Management L L P NC's holdings in McKesson were worth $32,288,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also bought and sold shares of the company. GAMMA Investing LLC increased its holdings in McKesson by 75,632.7% during the 1st 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. Nuveen LLC purchased a new position in McKesson in the first quarter valued at $475,235,000. Wellington Management Group LLP boosted its holdings in McKesson by 4,559.6% in the 1st quarter. Wellington Management Group LLP now owns 427,703 shares of the company's stock valued at $287,840,000 after purchasing an additional 418,524 shares during the last quarter. Boston Partners increased its stake in McKesson by 33.3% during the 1st quarter. Boston Partners now owns 1,461,785 shares of the company's stock worth $984,927,000 after buying an additional 365,484 shares during the period. Finally, Voya Investment Management LLC boosted its holdings in shares of McKesson by 92.3% in the 1st quarter. Voya Investment Management LLC now owns 650,851 shares of the company's stock valued at $437,760,000 after buying an additional 312,473 shares in the last quarter. 85.07% of the stock is owned by institutional investors.

Analysts Set New Price Targets

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

McKesson Stock Performance

McKesson stock traded up $7.94 during mid-day trading on Friday, reaching $698.07. 1,445,591 shares of the company were exchanged, compared to its average volume of 678,052. McKesson Corporation has a 12-month low of $464.42 and a 12-month high of $737.89. The business has a fifty day moving average of $695.15 and a 200 day moving average of $696.81. The firm has a market cap of $86.83 billion, a P/E ratio of 27.83, a PEG 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 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 was up 23.4% on a year-over-year basis. During the same quarter last year, the business earned $7.88 earnings per share. Sell-side analysts predict that McKesson Corporation will post 32.77 EPS 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 issued a $0.82 dividend. This is a positive change from McKesson's previous quarterly dividend of $0.71. The ex-dividend date is Tuesday, September 2nd. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.5%. McKesson's dividend payout ratio (DPR) is 13.08%.

Insider Buying and Selling at McKesson

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the business's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $663.67, for a total value of $218,347.43. Following the transaction, the chief accounting officer owned 657 shares in the company, valued at $436,031.19. The trade was a 33.37% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Brian S. Tyler sold 19,371 shares of the business's 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 transaction, the chief executive officer directly owned 27,872 shares of the company's stock, valued at $19,735,884.48. The trade was a 41.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 43,560 shares of company stock worth $30,438,602 in the last 90 days. Company insiders own 0.08% of the company's stock.

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.