McKesson Corporation $MCK Stock Position Raised by Highland Capital Management LLC

Key Points

• Highland Capital Management LLC increased its stake in McKesson Corporation by 32.1%, owning 9,627 shares worth approximately $7,054,000 after acquiring additional shares in the second quarter.
• McKesson reported $8.26 EPS in its latest earnings, missing estimates of $8.33, although revenue reached $97.83 billion, exceeding estimates of $95.93 billion.
• The company recently raised its quarterly dividend to $0.82, up from $0.71, reflecting a dividend yield of 0.4% and a payout ratio of 13.08%.

Highland Capital Management LLC increased its stake in McKesson Corporation (NYSE:MCK - Free Report) by 32.1% during the second quarter, according to its most recent filing with the Securities & Exchange Commission. The fund owned 9,627 shares of the company's stock after acquiring an additional 2,342 shares during the quarter. Highland Capital Management LLC's holdings in McKesson were worth $7,054,000 at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of MCK. Oppenheimer Asset Management Inc. boosted its holdings in shares of McKesson by 54.0% in the first quarter. Oppenheimer Asset Management Inc. now owns 4,541 shares of the company's stock worth $3,056,000 after buying an additional 1,592 shares during the period. Dynamic Advisor Solutions LLC lifted its position in shares of McKesson by 16.6% in the 1st quarter. Dynamic Advisor Solutions LLC now owns 778 shares of the company's stock valued at $524,000 after acquiring an additional 111 shares in the last quarter. Cambridge Investment Research Advisors Inc. boosted its stake in McKesson by 18.9% in the 1st quarter. Cambridge Investment Research Advisors Inc. now owns 23,033 shares of the company's stock worth $15,501,000 after purchasing an additional 3,659 shares during the period. Acadian Asset Management LLC grew its position in McKesson by 22.0% during the 1st quarter. Acadian Asset Management LLC now owns 378,926 shares of the company's stock worth $254,979,000 after purchasing an additional 68,294 shares in the last quarter. Finally, Wealth Enhancement Advisory Services LLC grew its position in McKesson by 4.3% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 183,258 shares of the company's stock worth $123,332,000 after purchasing an additional 7,556 shares in the last quarter. 85.07% of the stock is owned by hedge funds and other institutional investors.

McKesson Stock Performance

Shares of NYSE MCK opened at $738.00 on Friday. The business has a 50 day simple moving average of $702.60 and a 200 day simple moving average of $703.23. McKesson Corporation has a 52 week low of $480.39 and a 52 week high of $776.14. The stock has a market cap of $91.79 billion, a price-to-earnings ratio of 29.43, a PEG ratio of 1.32 and a beta of 0.52.

McKesson (NYSE:MCK - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $8.33 by ($0.07). The business had revenue of $97.83 billion during 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% compared to the same quarter last year. During the same quarter last year, the firm earned $7.88 earnings per share. On average, analysts predict that McKesson Corporation will post 32.77 EPS for the current year.

McKesson Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd were issued a $0.82 dividend. This is a boost from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 dividend on an annualized basis and a yield of 0.4%. The ex-dividend date was Tuesday, September 2nd. McKesson's dividend payout ratio is currently 13.08%.

Insider Buying and Selling at McKesson

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the firm's stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $663.67, for a total transaction of $218,347.43. Following the transaction, the chief accounting officer directly owned 657 shares in the company, valued at $436,031.19. This trade represents a 33.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Brian S. Tyler sold 19,371 shares of the company's stock in a transaction dated Friday, July 11th. The stock was sold at an average price of $708.09, for a total value of $13,716,411.39. Following the sale, the chief executive officer owned 27,872 shares of the company's stock, valued at approximately $19,735,884.48. This trade represents a 41.00% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 43,560 shares of company stock worth $30,438,602 over the last three months. Company insiders own 0.08% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the company. TD Cowen raised their target price on McKesson from $830.00 to $864.00 and gave the stock a "buy" rating in a research report on Wednesday, September 24th. UBS Group increased their price objective on McKesson from $820.00 to $860.00 and gave the stock a "buy" rating in a research note on Wednesday, September 24th. Morgan Stanley lifted their target price on McKesson from $810.00 to $857.00 and gave the company an "overweight" rating in a research note on Wednesday, September 24th. JPMorgan Chase & Co. upped their target price on McKesson from $821.00 to $853.00 and gave the company an "overweight" rating in a report on Friday, September 26th. Finally, Evercore ISI raised their price target on shares of McKesson from $800.00 to $825.00 and gave the stock an "outperform" rating in a report on Wednesday, September 24th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $829.08.

McKesson Company 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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