McKesson Corporation $MCK Stake Raised by Vestor Capital LLC

Key Points

• Vestor Capital increased its McKesson stake by 1,796.6% in the third quarter, adding 14,409 shares to hold 15,211 shares worth about $13 million. Institutional investors collectively own 85.07% of the company.
• McKesson beat quarterly earnings and revenue expectations, reporting EPS of $11.68 and revenue of $110.96 billion; revenue grew 7.5% year over year.
• The company declared a quarterly dividend of $0.94 per share, equivalent to $3.76 annually and a 0.4% yield. Analysts’ consensus rating is “Moderate Buy,” with an average price target of $1,026.18.

Vestor Capital LLC raised its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 1,796.6% during the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 15,211 shares of the company's stock after buying an additional 14,409 shares during the quarter. Vestor Capital LLC's holdings in McKesson were worth $12,987,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Secure Asset Management LLC lifted its holdings in McKesson by 484.8% in the second quarter. Secure Asset Management LLC now owns 2,123 shares of the company's stock worth $1,604,000 after buying an additional 1,760 shares during the period. BayBridge Capital Group LLC grew its holdings in shares of McKesson by 268.0% during the 2nd quarter. BayBridge Capital Group LLC now owns 1,943 shares of the company's stock worth $1,468,000 after acquiring an additional 1,415 shares during the period. Royal London Asset Management Ltd. grew its holdings in shares of McKesson by 1.1% during the 2nd quarter. Royal London Asset Management Ltd. now owns 112,241 shares of the company's stock worth $84,809,000 after acquiring an additional 1,216 shares during the period. Benchmark Investment Advisors LLC bought a new position in shares of McKesson in the 2nd quarter worth approximately $441,000. Finally, One Wealth Advisors LLC bought a new position in shares of McKesson in the 2nd quarter worth approximately $1,494,000. Institutional investors own 85.07% of the company's stock.

Insider Activity at McKesson

In related news, CAO Napoleon B. Rutledge, Jr. sold 111 shares of the business's stock in a transaction that occurred 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 transaction, the chief accounting officer directly owned 521 shares in the company, valued at $464,445.45. The trade was a 17.56% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Francisco Fraga sold 800 shares of the company's stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $995.80, for a total value of $796,640.00. Following the completion of the transaction, the executive vice president directly owned 5,423 shares in the company, valued at $5,400,223.40. This trade represents a 12.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 2,161 shares of company stock worth $2,242,515. Insiders own 0.06% of the company's stock.

McKesson Price Performance

MCK opened at $1,059.43 on Tuesday. The stock has a 50-day moving average price of $941.40 and a 200-day moving average price of $869.30. The firm has a market cap of $123.52 billion, a PE 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.

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

McKesson Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Monday, January 4th. Stockholders of record on Tuesday, December 1st will be paid a $0.94 dividend. This represents a $3.76 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Tuesday, December 1st. McKesson's dividend payout ratio is currently 9.67%.

Analyst Ratings Changes

Several brokerages recently weighed in on MCK. Morgan Stanley set a $977.00 price target on McKesson in a research note on Tuesday, October 6th. Wall Street Zen upgraded McKesson from a "hold" rating to a "buy" rating in a report on Saturday, October 17th. Citigroup raised their price objective on McKesson from $945.00 to $1,000.00 and gave the company a "buy" rating in a research report on Friday, July 24th. Bank of America boosted their target price on shares of McKesson from $950.00 to $1,050.00 in a report on Thursday, August 6th. Finally, Wells Fargo & Company upped their target price on shares of McKesson from $812.00 to $933.00 and gave the stock an "equal weight" rating in a research report on Tuesday, August 11th. Fifteen equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company's stock. According to MarketBeat, McKesson currently has a consensus rating of "Moderate Buy" and an average price target 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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