McKesson Corporation $MCK Shares Sold by Aberdeen Group plc

Key Points

• Aberdeen Group plc significantly reduced its stake in McKesson Corporation by 61.0%, selling 106,816 shares to end with a total ownership of 68,338 shares worth approximately $45.8 million.
• Despite some insider selling activity, McKesson's stock received multiple upgrades from analysts, with UBS Group raising its price target from $708 to $805, while maintaining a "buy" rating.
• McKesson recently increased its quarterly dividend to $0.82 per share, effective October 1st, reflecting a positive change from the previous dividend of $0.71.

Aberdeen Group plc cut its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 61.0% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 68,338 shares of the company's stock after selling 106,816 shares during the quarter. Aberdeen Group plc owned approximately 0.05% of McKesson worth $45,785,000 at the end of the most recent reporting period.

Other large investors also recently modified their holdings of the company. GAMMA Investing LLC lifted its holdings in McKesson by 75,632.7% in the 1st quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock worth $1,610,567,000 after purchasing an additional 2,389,992 shares in the last quarter. Nuveen LLC bought a new stake in McKesson during the first quarter worth approximately $475,235,000. Farallon Capital Management LLC purchased a new stake in McKesson during the 4th quarter valued at $348,044,000. Boston Partners boosted its position in shares of McKesson by 33.3% during the first quarter. Boston Partners now owns 1,461,785 shares of the company's stock valued at $984,927,000 after buying an additional 365,484 shares during the period. Finally, Leigh Baldwin & CO. LLC purchased a new stake in shares of McKesson during the fourth quarter valued at $182,861,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

McKesson Trading Up 0.5%

Shares of MCK traded up $3.62 during mid-day trading on Thursday, hitting $706.56. 266,230 shares of the company's stock were exchanged, compared to its average volume of 886,270. McKesson Corporation has a fifty-two week low of $464.42 and a fifty-two week high of $737.89. The business's 50 day moving average is $707.96 and its two-hundred day moving average is $683.29. The firm has a market capitalization of $87.88 billion, a P/E ratio of 28.17, a P/E/G ratio of 1.35 and a beta of 0.50.

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

McKesson Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd will be issued a dividend of $0.82 per share. This is a boost from McKesson's previous quarterly dividend of $0.71. The ex-dividend date is Tuesday, September 2nd. This represents a $3.28 dividend on an annualized basis and a yield of 0.5%. McKesson's payout ratio is currently 11.32%.

Wall Street Analysts Forecast Growth

MCK has been the topic of a number of recent research reports. Evercore ISI increased their price objective 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. Wells Fargo & Company increased their target price on shares of McKesson from $766.00 to $772.00 and gave the stock an "equal weight" rating in a research note on Wednesday, August 13th. UBS Group increased their target price on McKesson from $708.00 to $805.00 and gave the company a "buy" rating in a report on Tuesday, April 29th. Wall Street Zen downgraded shares of McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Finally, Bank of America raised their price target on shares of McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a report on Friday, May 9th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $725.10.

Insider Transactions at McKesson

In other McKesson news, CFO Britt J. Vitalone sold 1,878 shares of the business's stock in a transaction on Wednesday, May 28th. The stock was sold at an average price of $717.91, for a total value of $1,348,234.98. Following the completion of the transaction, the chief financial officer directly owned 14,028 shares in the company, valued at approximately $10,070,841.48. The trade was a 11.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Leann B. Smith sold 341 shares of McKesson stock in a transaction on Wednesday, May 28th. The shares were sold at an average price of $717.91, for a total transaction of $244,807.31. Following the transaction, the executive vice president owned 2,800 shares in the company, valued at $2,010,148. The trade was a 10.86% decrease in their position. The disclosure for this sale can be found here. Insiders sold 56,620 shares of company stock worth $39,712,388 in the last three months. 0.08% of the stock is currently 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.