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Boston Partners Raises Holdings in McKesson Corporation (NYSE:MCK)

McKesson logo with Medical background

Key Points

  • Boston Partners increased its stake in McKesson Corporation by 33.3%, owning approximately 1.46 million shares valued at nearly $985 million, making it the 11th largest position in their portfolio.
  • McKesson's stock has recently seen a decrease of 2.1% and is trading around $658.78, with analysts giving it a consensus rating of "Moderate Buy" and an average target price of $718.73.
  • The company announced an increase in its quarterly dividend to $0.82 per share, offering an annualized yield of 0.5% and a payout ratio of 11.32%.
  • Want stock alerts on McKesson? Get 5 Weeks of MarketBeat All Access for $5. Get My Stock Alerts.

Boston Partners grew its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 33.3% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,461,785 shares of the company's stock after buying an additional 365,484 shares during the period. McKesson accounts for 1.2% of Boston Partners' portfolio, making the stock its 11th biggest holding. Boston Partners owned 1.17% of McKesson worth $984,927,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other large investors have also recently made changes to their positions in the stock. William B. Walkup & Associates Inc. lifted its position in shares of McKesson by 0.5% during the 1st quarter. William B. Walkup & Associates Inc. now owns 6,740 shares of the company's stock valued at $4,536,000 after buying an additional 36 shares in the last quarter. Tokio Marine Asset Management Co. Ltd. raised its stake in McKesson by 1.7% during the 1st quarter. Tokio Marine Asset Management Co. Ltd. now owns 4,046 shares of the company's stock valued at $2,723,000 after purchasing an additional 68 shares during the period. NFP Retirement Inc. bought a new stake in McKesson during the 1st quarter valued at approximately $206,000. National Pension Service raised its stake in McKesson by 3.4% during the 1st quarter. National Pension Service now owns 323,201 shares of the company's stock valued at $217,511,000 after purchasing an additional 10,699 shares during the period. Finally, GKV Capital Management Co. Inc. bought a new stake in McKesson during the 1st quarter valued at approximately $116,000. 85.07% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at McKesson

In related news, EVP Thomas L. Rodgers sold 2,891 shares of the business's stock in a transaction on Friday, May 30th. The stock was 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 owned 2,544 shares in the company, valued at $1,811,785.92. The trade was a 53.19% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Brian S. Tyler sold 19,371 shares of the business's stock in a transaction on Friday, July 11th. The shares were sold at an average price of $708.09, for a total value of $13,716,411.39. Following the transaction, the chief executive officer owned 27,872 shares of the company's stock, valued at approximately $19,735,884.48. The trade was a 41.00% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 52,817 shares of company stock worth $37,461,210 over the last quarter. 0.08% of the stock is owned by insiders.

McKesson Price Performance

Shares of McKesson stock traded down $0.96 on Friday, reaching $672.86. The company had a trading volume of 630,704 shares, compared to its average volume of 883,823. The firm has a market cap of $83.69 billion, a price-to-earnings ratio of 26.83, a P/E/G ratio of 1.34 and a beta of 0.50. The firm's 50-day moving average price is $710.37 and its two-hundred day moving average price is $681.11. McKesson Corporation has a 1 year low of $464.42 and a 1 year high of $737.89.

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

McKesson Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Investors 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 yield of 0.5%. The ex-dividend date is Tuesday, September 2nd. This is an increase from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio (DPR) is presently 11.32%.

Wall Street Analyst Weigh In

MCK has been the topic of several recent analyst reports. UBS Group lifted their target price on McKesson from $708.00 to $805.00 and gave the company a "buy" rating in a research note on Tuesday, April 29th. Morgan Stanley reissued an "overweight" rating and set a $810.00 target price (up previously from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Wall Street Zen downgraded McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. Bank of America lifted their price objective on McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. Finally, Evercore ISI lifted their price objective on McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 9th. Three investment analysts have rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $719.27.

Check Out Our Latest Report on MCK

About McKesson

(Free Report)

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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Institutional Ownership by Quarter for McKesson (NYSE:MCK)

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