Pacer Advisors Inc. Sells 8,771 Shares of McKesson Corporation (NYSE:MCK)

Key Points

• Pacer Advisors Inc. reduced its stake in McKesson Corporation by 45.5%, holding 10,508 shares valued at approximately $7.07 million after selling 8,771 shares in the first quarter.
• McKesson reported earnings of $10.12 per share for its latest quarter, exceeding analyst estimates of $9.83, with a year-over-year revenue growth of 18.9%.
• Insiders have sold 52,488 shares of McKesson valued at over $37 million in the past three months, with CEO Brian S. Tyler alone reducing his holdings by 41%.

Pacer Advisors Inc. lowered its position in McKesson Corporation (NYSE:MCK - Free Report) by 45.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 10,508 shares of the company's stock after selling 8,771 shares during the quarter. Pacer Advisors Inc.'s holdings in McKesson were worth $7,072,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other large investors have also recently bought and sold shares of the business. GAMMA Investing LLC lifted its stake in McKesson by 75,632.7% during the first quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock valued at $1,610,567,000 after buying an additional 2,389,992 shares in the last quarter. Farallon Capital Management LLC bought a new stake in shares of McKesson during the 4th quarter valued at $348,044,000. Marshall Wace LLP raised its stake in McKesson by 59,720.3% during the 4th quarter. Marshall Wace LLP now owns 358,922 shares of the company's stock worth $204,553,000 after buying an additional 358,322 shares during the period. Leigh Baldwin & CO. LLC acquired a new stake in McKesson in the 4th quarter valued at $182,861,000. Finally, Deutsche Bank AG increased its stake in shares of McKesson by 64.0% during the 4th quarter. Deutsche Bank AG now owns 751,283 shares of the company's stock worth $428,164,000 after purchasing an additional 293,148 shares during the last quarter. Institutional investors and hedge funds own 85.07% of the company's stock.

Wall Street Analyst Weigh In

MCK has been the subject of a number of research reports. Mizuho raised their price objective on shares of McKesson from $630.00 to $690.00 and gave the company a "neutral" rating in a report on Thursday, April 3rd. Cfra Research downgraded McKesson from a "moderate buy" rating to a "hold" rating in a research note on Friday, April 4th. Bank of America upped their price objective on shares of McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. Evercore ISI increased their target price on shares of McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Finally, Wells Fargo & Company set a $766.00 target price on McKesson and gave the stock an "equal weight" rating in a research report on Tuesday, June 3rd. Three investment analysts have rated the stock with a hold rating, eleven have given a buy rating and one has assigned a strong buy rating to the company's stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $710.17.

Insider Transactions at McKesson

In related news, EVP Thomas L. Rodgers sold 2,891 shares of the stock in a transaction on Friday, May 30th. The stock was sold at an average price of $712.18, for a total value of $2,058,912.38. Following 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 sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Brian S. Tyler sold 19,371 shares of McKesson stock in a transaction dated Friday, July 11th. The shares were sold at an average price of $708.09, for a total transaction of $13,716,411.39. Following the completion of the sale, the chief executive officer owned 27,872 shares in the company, valued at approximately $19,735,884.48. This represents a 41.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 52,488 shares of company stock worth $37,242,862 over the last quarter. 0.08% of the stock is currently owned by corporate insiders.

McKesson Trading Down 0.7%

Shares of MCK stock traded down $4.74 during trading hours on Thursday, reaching $710.18. The company's stock had a trading volume of 259,952 shares, compared to its average volume of 872,414. The firm's fifty day simple moving average is $717.25 and its 200 day simple moving average is $674.13. The stock has a market capitalization of $88.85 billion, a P/E ratio of 27.48, a P/E/G ratio of 1.44 and a beta of 0.48. McKesson Corporation has a one year low of $464.42 and a one year high of $737.89.

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

McKesson Increases Dividend

The business also recently declared 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 dividend yield of 0.46%. This is a positive change from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio (DPR) is currently 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.