McKesson Corporation $MCK Stock: Aberdeen Group plc Grows Holdings

Key Points

• Aberdeen Group increased its McKesson holdings by 143.4% in the third quarter, to 296,426 shares worth about $253.1 million. Institutional investors collectively own 85.07% of the company.
• McKesson beat quarterly earnings and revenue estimates, reporting EPS of $11.68 versus $10.72 expected and revenue of $110.96 billion; revenue grew 7.5% year over year.
• Analysts rate the stock a “Moderate Buy”, with a consensus price target of $1,040.29. McKesson also declared a quarterly dividend of $0.94 per share.

Aberdeen Group plc boosted its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 143.4% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 296,426 shares of the company's stock after buying an additional 174,642 shares during the period. Aberdeen Group plc owned approximately 0.25% of McKesson worth $253,091,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also bought and sold shares of MCK. BlackRock Inc. bought a new position in shares of McKesson in the second quarter worth approximately $8,156,743,000. Bank of America Corp DE raised its position in shares of McKesson by 2.4% during the first quarter. Bank of America Corp DE now owns 1,538,726 shares of the company's stock valued at $1,331,552,000 after buying an additional 35,916 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of McKesson by 3.3% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 922,573 shares of the company's stock worth $697,096,000 after acquiring an additional 29,747 shares in the last quarter. Legal & General Group Plc bought a new stake in McKesson in the second quarter worth $656,566,000. Finally, The Manufacturers Life Insurance Company purchased a new stake in shares of McKesson during the second quarter valued at $651,462,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

Insider Activity

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 111 shares of the company's stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $891.45, for a total value of $98,950.95. Following the sale, the chief accounting officer owned 521 shares in the company, valued at approximately $464,445.45. This represents a 17.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed 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 firm's stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $995.80, for a total transaction of $796,640.00. Following the sale, the executive vice president directly owned 5,423 shares in the company, valued at approximately $5,400,223.40. The trade was a 12.86% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 2,161 shares of company stock valued at $2,242,515. 0.06% of the stock is owned by company insiders.

McKesson Stock Performance

Shares of MCK opened at $1,103.31 on Friday. The firm's 50 day moving average price is $955.45 and its two-hundred day moving average price is $874.53. The firm has a market cap of $127.39 billion, a P/E ratio of 25.26, a PEG ratio of 1.82 and a beta of 0.27. McKesson Corporation has a twelve month low of $723.68 and a twelve month high of $1,121.50.

McKesson (NYSE:MCK - Get Free Report) last released its earnings results on Wednesday, November 4th. The company reported $11.68 earnings per share (EPS) for the quarter, topping the consensus estimate of $10.72 by $0.96. The business had revenue of $110.96 billion for the quarter, compared to analyst estimates of $109.90 billion. McKesson had a negative return on equity of 202.94% and a net margin of 1.12%. McKesson's revenue was up 7.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $9.86 earnings per share. On average, sell-side analysts anticipate that McKesson Corporation will post 46.16 earnings per share for the current fiscal year.

McKesson Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, January 4th. Investors of record on Tuesday, December 1st will be paid a dividend of $0.94 per share. This represents a $3.76 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date is Tuesday, December 1st. McKesson's payout ratio is presently 9.67%.

Wall Street Analyst Weigh In

Several equities research analysts have commented on MCK shares. Mizuho upped their price objective on McKesson from $905.00 to $1,020.00 and gave the stock a "neutral" rating in a research report on Tuesday, October 20th. JPMorgan Chase & Co. boosted their price objective on McKesson from $1,042.00 to $1,255.00 and gave the company an "overweight" rating in a report on Tuesday. UBS Group increased their price target on shares of McKesson from $1,200.00 to $1,250.00 and gave the company a "buy" rating in a research note on Thursday, November 5th. Wall Street Zen upgraded shares of McKesson from a "hold" rating to a "buy" rating in a research note on Saturday, October 17th. Finally, Bank of America lifted their price target on McKesson from $950.00 to $1,050.00 in a research note on Thursday, August 6th. Fifteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $1,040.29.

About McKesson

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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