Westwood Holdings Group Inc. Has $4.11 Million Holdings in McKesson Corporation (NYSE:MCK)

Key Points

• Westwood Holdings Group Inc. increased its stake in McKesson Corporation by 81.0% in the first quarter, acquiring a total of 6,110 shares worth approximately $4.1 million.
• McKesson's quarterly earnings showed a revenue increase of 23.4% year-over-year, despite EPS falling short of analyst estimates at $8.26.
• The company announced an increase in its quarterly dividend to $0.82, reflecting a 0.5% dividend yield, with the next payment scheduled for October 1st.

Westwood Holdings Group Inc. boosted its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 81.0% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 6,110 shares of the company's stock after purchasing an additional 2,735 shares during the quarter. Westwood Holdings Group Inc.'s holdings in McKesson were worth $4,112,000 at the end of the most recent quarter.

A number of other hedge funds have also recently added to or reduced their stakes in MCK. Brighton Jones LLC boosted its holdings in McKesson by 46.3% in the fourth quarter. Brighton Jones LLC now owns 2,523 shares of the company's stock worth $1,438,000 after purchasing an additional 798 shares during the period. Wellington Management Group LLP boosted its holdings in McKesson by 18.2% in the fourth quarter. Wellington Management Group LLP now owns 9,179 shares of the company's stock worth $5,231,000 after purchasing an additional 1,413 shares during the period. Cerity Partners LLC boosted its holdings in McKesson by 1.6% in the fourth quarter. Cerity Partners LLC now owns 44,913 shares of the company's stock worth $24,836,000 after purchasing an additional 689 shares during the period. Bank of Nova Scotia boosted its holdings in McKesson by 19.9% in the fourth quarter. Bank of Nova Scotia now owns 20,734 shares of the company's stock worth $11,817,000 after purchasing an additional 3,447 shares during the period. Finally, Renaissance Technologies LLC boosted its holdings in McKesson by 168.4% in the fourth quarter. Renaissance Technologies LLC now owns 235,226 shares of the company's stock worth $134,058,000 after purchasing an additional 147,600 shares during the period. Institutional investors and hedge funds own 85.07% of the company's stock.

McKesson Price Performance

Shares of NYSE MCK traded up $3.89 during midday trading on Friday, reaching $667.14. 1,298,642 shares of the company traded hands, compared to its average volume of 740,071. McKesson Corporation has a 52 week low of $464.42 and a 52 week high of $737.89. The stock has a 50-day moving average price of $714.12 and a 200 day moving average price of $679.09. The company has a market cap of $82.98 billion, a price-to-earnings ratio of 26.60, a PEG ratio of 1.34 and a beta of 0.50.

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

McKesson Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd will be given a $0.82 dividend. This represents a $3.28 annualized dividend and a yield of 0.5%. This is a boost from McKesson's previous quarterly dividend of $0.71. The ex-dividend date is Tuesday, September 2nd. McKesson's dividend payout ratio (DPR) is presently 10.99%.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on MCK. Wall Street Zen cut McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. Morgan Stanley reiterated an "overweight" rating and issued a $810.00 target price (up from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Bank of America raised their target price on McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a research note on Friday, May 9th. Cowen reiterated a "buy" rating on shares of McKesson in a research note on Thursday. Finally, Evercore ISI raised their target price on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a research note on Wednesday, July 9th. Three research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $718.73.

Insider Transactions at McKesson

In other McKesson news, EVP Thomas L. Rodgers sold 2,891 shares of the business's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $712.18, for a total value of $2,058,912.38. Following the sale, the executive vice president directly owned 2,544 shares in the company, valued at approximately $1,811,785.92. The trade was a 53.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Leann B. Smith sold 341 shares of the business's stock in a transaction dated Wednesday, May 28th. The stock was sold at an average price of $717.91, for a total value of $244,807.31. Following the sale, the executive vice president owned 2,800 shares in the company, valued at approximately $2,010,148. The trade was a 10.86% decrease in their position. The disclosure for this sale can be found here. Insiders sold 52,488 shares of company stock valued at $37,242,862 in the last quarter. 0.08% of the stock is owned by company insiders.

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.