PNC Financial Services Group Inc. Purchases 10,027 Shares of McKesson Corporation (NYSE:MCK)

Key Points

• PNC Financial Services Group Inc. increased its stake in McKesson Corporation by 10.4% in Q1, owning 106,030 shares valued at approximately $71.4 million.
• CEO Brian S. Tyler and CFO Britt J. Vitalone recently sold significant shares of McKesson, with Tyler selling 19,371 shares and Vitalone selling 1,878 shares.
• McKesson announced an increase in its quarterly dividend from $0.71 to $0.82, with the dividend scheduled for payment on October 1st.

PNC Financial Services Group Inc. lifted its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 10.4% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 106,030 shares of the company's stock after purchasing an additional 10,027 shares during the quarter. PNC Financial Services Group Inc. owned approximately 0.08% of McKesson worth $71,357,000 as of its most recent SEC filing.

Other hedge funds also recently modified their holdings of the company. Oppenheimer Asset Management Inc. increased its stake in shares of McKesson by 54.0% during the 1st quarter. Oppenheimer Asset Management Inc. now owns 4,541 shares of the company's stock worth $3,056,000 after purchasing an additional 1,592 shares during the last quarter. Dynamic Advisor Solutions LLC grew its stake in 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 buying an additional 111 shares during the last quarter. Cambridge Investment Research Advisors Inc. grew 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 valued at $15,501,000 after buying an additional 3,659 shares during the last quarter. Wealth Enhancement Advisory Services LLC grew its stake in McKesson by 4.3% in the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 183,258 shares of the company's stock valued at $123,332,000 after buying an additional 7,556 shares during the last quarter. Finally, LPL Financial LLC grew its stake in McKesson by 12.8% in the 1st quarter. LPL Financial LLC now owns 155,946 shares of the company's stock valued at $104,950,000 after buying an additional 17,750 shares during the last quarter. Institutional investors and hedge funds own 85.07% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research firms recently issued reports on MCK. 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. Wells Fargo & Company set a $766.00 target price on shares of McKesson and gave the company an "equal weight" rating in a research note on Tuesday, June 3rd. UBS Group raised their target price on shares of McKesson from $708.00 to $805.00 and gave the company a "buy" rating in a research note on Tuesday, April 29th. Evercore ISI raised their target price on shares of McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a research note on Wednesday, July 9th. Finally, Bank of America raised their target price on shares of McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a research note on Friday, May 9th. Three research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $710.17.

Insider Activity at McKesson

In other news, EVP Thomas L. Rodgers sold 2,891 shares of the firm's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $712.18, for a total transaction of $2,058,912.38. Following the completion of the transaction, the executive vice president directly owned 2,544 shares of the company's stock, valued at approximately $1,811,785.92. This trade represents a 53.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Brian S. Tyler sold 19,371 shares of the firm's stock in a transaction dated Friday, July 11th. The stock was sold at an average price of $708.09, for a total transaction of $13,716,411.39. Following the transaction, the chief executive officer directly owned 27,872 shares of the company's stock, valued at $19,735,884.48. The trade was a 41.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 52,488 shares of company stock worth $37,242,862 in the last ninety days. Company insiders own 0.08% of the company's stock.

McKesson Stock Down 0.0%

NYSE MCK traded down $0.00 during midday trading on Tuesday, hitting $710.94. The company had a trading volume of 74,408 shares, compared to its average volume of 873,504. The stock has a market cap of $88.95 billion, a price-to-earnings ratio of 27.56, a P/E/G ratio of 1.41 and a beta of 0.50. The firm has a fifty day simple moving average of $716.48 and a two-hundred day simple moving average of $677.63. McKesson Corporation has a fifty-two week low of $464.42 and a fifty-two week high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings results on Thursday, May 8th. The company reported $10.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $9.83 by $0.29. The company had revenue of $90.82 billion for the quarter, compared to analyst estimates of $94 billion. McKesson had a net margin of 0.92% and a negative return on equity of 201.12%. The business's quarterly revenue was up 18.9% on a year-over-year basis. During the same period last year, the business posted $6.18 EPS. As a group, equities analysts predict that McKesson Corporation will post 32.77 earnings per share for the current year.

McKesson Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be issued a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Tuesday, September 2nd. This is a positive change from McKesson's previous quarterly dividend of $0.71. McKesson's payout ratio is 10.99%.

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.