McKesson Corporation $MCK Stake Boosted by Ethic Inc.

Key Points

• Ethic Inc. increased its McKesson stake by 17.3% in the third quarter, ending with 8,190 shares valued at about $6.99 million. Institutional investors collectively own 85.07% of the stock.
• McKesson beat quarterly estimates, reporting earnings per share of $11.68 versus $10.72 expected and revenue of $110.96 billion, up 7.5% year over year.
• Analyst sentiment is broadly positive: 15 analysts rate the stock a Buy and four a Hold, with a consensus “Moderate Buy” rating and an average price target of $1,026.18.

Ethic Inc. raised its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 17.3% in the 3rd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 8,190 shares of the company's stock after buying an additional 1,208 shares during the quarter. Ethic Inc.'s holdings in McKesson were worth $6,993,000 as of its most recent filing with the Securities & Exchange Commission.

Other institutional investors have also added to or reduced their stakes in the company. Pictet Asset Management Holding SA increased its position in shares of McKesson by 2.6% in the third quarter. Pictet Asset Management Holding SA now owns 98,944 shares of the company's stock worth $84,497,000 after purchasing an additional 2,550 shares during the last quarter. Parallel Advisors LLC lifted its position in McKesson by 1.5% during the third quarter. Parallel Advisors LLC now owns 3,048 shares of the company's stock valued at $2,603,000 after purchasing an additional 44 shares during the last quarter. Abacus Wealth Partners LLC lifted its position in McKesson by 11.4% during the third quarter. Abacus Wealth Partners LLC now owns 578 shares of the company's stock valued at $494,000 after purchasing an additional 59 shares during the last quarter. United Advisor Group LLC bought a new stake in McKesson during the third quarter valued at approximately $219,000. Finally, Plancorp LLC lifted its position in McKesson by 74.6% during the third quarter. Plancorp LLC now owns 1,557 shares of the company's stock valued at $1,329,000 after purchasing an additional 665 shares during the last quarter. 85.07% of the stock is currently owned by institutional investors.

McKesson Trading Down 0.1%

Shares of NYSE MCK opened at $1,059.43 on Tuesday. The stock has a market cap of $123.52 billion, a price-to-earnings ratio of 27.24, a P/E/G ratio of 2.13 and a beta of 0.27. McKesson Corporation has a 1-year low of $723.68 and a 1-year high of $1,121.50. The stock's 50-day moving average is $941.40 and its 200 day moving average is $869.30.

McKesson (NYSE:MCK - Get Free Report) last released its earnings results on Wednesday, November 4th. The company reported $11.68 earnings per share for the quarter, topping analysts' consensus estimates of $10.72 by $0.96. The company had revenue of $110.96 billion during the quarter, compared to the consensus estimate of $109.90 billion. McKesson had a negative return on equity of 235.48% and a net margin of 1.12%. McKesson's quarterly revenue was up 7.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $9.86 EPS. On average, analysts forecast that McKesson Corporation will post 46.21 EPS for the current fiscal year.

McKesson Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, January 4th. Shareholders of record on Tuesday, December 1st will be paid a dividend of $0.94 per share. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $3.76 annualized dividend and a dividend yield of 0.4%. McKesson's dividend payout ratio (DPR) is 9.67%.

Insider Activity at McKesson

In other news, CAO Napoleon B. Rutledge, Jr. sold 111 shares of the company's stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $891.45, for a total value of $98,950.95. Following the completion of the sale, the chief accounting officer owned 521 shares of the company's stock, valued at approximately $464,445.45. This represents a 17.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Francisco Fraga sold 800 shares of the stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $995.80, for a total transaction of $796,640.00. Following the transaction, the executive vice president directly owned 5,423 shares in the company, valued at approximately $5,400,223.40. This represents a 12.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 2,161 shares of company stock worth $2,242,515 over the last three months. Insiders own 0.06% of the company's stock.

Analysts Set New Price Targets

MCK has been the subject of a number of research reports. Mizuho boosted their price target on shares of McKesson from $905.00 to $1,020.00 and gave the stock a "neutral" rating in a research note on Tuesday, October 20th. Evercore reaffirmed an "outperform" rating and set a $950.00 price objective (down from $1,000.00) on shares of McKesson in a report on Thursday, August 6th. TD Cowen lifted their price objective on shares of McKesson from $1,006.00 to $1,200.00 and gave the stock a "buy" rating in a report on Thursday, November 5th. Royal Bank Of Canada upped their target price on shares of McKesson from $845.00 to $965.00 and gave the stock a "sector perform" rating in a research report on Thursday, November 5th. Finally, Citigroup increased their target price on McKesson from $945.00 to $1,000.00 and gave the company a "buy" rating in a research note on Friday, July 24th. Fifteen analysts have rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, McKesson presently has a consensus rating of "Moderate Buy" and an average target price of $1,026.18.

McKesson Company Profile

McKesson Corporation is a healthcare services and information technology company that distributes pharmaceuticals and other medical products. Its customers include pharmacies, hospitals, health systems, clinics and other healthcare providers.

The company also provides medical-surgical supplies and technology and services that support pharmacy operations, prescription management and care delivery. Its offerings include specialized support for oncology and other areas of care.

Founded in 1833, McKesson serves customers primarily in the United States and Canada.

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