McKesson Corporation $MCK Stock Position Decreased by Ninety One UK Ltd

Key Points

• Ninety One UK Ltd reduced its stake in McKesson Corporation by 42.1%, now holding 47,820 shares worth approximately $35 million.
• McKesson's recent earnings report showed an EPS of $8.26, missing analyst expectations, but revenue increased by 23.4% year-over-year.
• The company announced a quarterly dividend increase to $0.82 per share, up from $0.71, with a yield of 0.4% and a payout ratio of 13.08%.

Ninety One UK Ltd cut its position in shares of McKesson Corporation (NYSE:MCK - Free Report) by 42.1% in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 47,820 shares of the company's stock after selling 34,726 shares during the period. Ninety One UK Ltd's holdings in McKesson were worth $35,042,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors have also recently added to or reduced their stakes in the business. Bank of Jackson Hole Trust raised its holdings in shares of McKesson by 64.3% during the 1st quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock valued at $29,000 after purchasing an additional 18 shares in the last quarter. CBIZ Investment Advisory Services LLC raised its holdings in shares of McKesson by 1,366.7% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after purchasing an additional 41 shares in the last quarter. Saudi Central Bank bought a new position in McKesson during the first quarter valued at about $34,000. Flaharty Asset Management LLC bought a new position in McKesson during the first quarter valued at about $39,000. Finally, Pandora Wealth Inc. bought a new position in McKesson during the first quarter valued at about $40,000. Institutional investors own 85.07% of the company's stock.

Insider Transactions at McKesson

In other news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of McKesson stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $663.67, for a total transaction of $218,347.43. Following the sale, the chief accounting officer owned 657 shares of the company's stock, valued at approximately $436,031.19. This trade represents a 33.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Brian S. Tyler sold 11,930 shares of McKesson stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the sale, the chief executive officer owned 4,012 shares in the company, valued at $2,830,987.56. This represents a 74.83% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 43,560 shares of company stock worth $30,438,602. 0.08% of the stock is owned by company insiders.

McKesson Trading Up 1.4%

Shares of McKesson stock opened at $772.61 on Wednesday. The company's fifty day simple moving average is $700.06 and its 200-day simple moving average is $701.27. The company has a market cap of $96.10 billion, a price-to-earnings ratio of 30.81, a PEG ratio of 1.37 and a beta of 0.51. McKesson Corporation has a 1 year low of $480.39 and a 1 year high of $774.85.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $8.33 by ($0.07). The company had revenue of $97.83 billion during the quarter, compared to analyst estimates of $95.93 billion. McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.The business's revenue for the quarter was up 23.4% on a year-over-year basis. During the same quarter in the prior year, the business earned $7.88 earnings per share. As a group, research analysts forecast that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be given a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a yield of 0.4%. This is a boost from McKesson's previous quarterly dividend of $0.71. The ex-dividend date of this dividend is Tuesday, September 2nd. McKesson's dividend payout ratio (DPR) is 13.08%.

Wall Street Analyst Weigh In

Several research firms have weighed in on MCK. Leerink Partners raised their target price on McKesson from $785.00 to $850.00 and gave the company an "outperform" rating in a report on Wednesday, September 24th. Morgan Stanley raised their price objective on McKesson from $810.00 to $857.00 and gave the company an "overweight" rating in a research note on Wednesday, September 24th. UBS Group lifted their price target on shares of McKesson from $820.00 to $860.00 and gave the company a "buy" rating in a research report on Wednesday, September 24th. Mizuho lifted their price target on shares of McKesson from $750.00 to $770.00 and gave the company a "neutral" rating in a research report on Wednesday, September 24th. Finally, Evercore ISI lifted their price target on shares of McKesson from $800.00 to $825.00 and gave the company an "outperform" rating in a research report on Wednesday, September 24th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $829.08.

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.

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