Mechanics Bank Trust Department Has $2.33 Million Holdings in McKesson Corporation $MCK

Key Points

• Mechanics Bank Trust Department reduced its stake in McKesson Corporation by 22.0%, selling 896 shares during the 2nd quarter, leaving them with 3,178 shares valued at approximately $2.3 million.
• Insider selling activity was notable as both CAO Napoleon B. Rutledge, Jr. and CEO Brian S. Tyler sold shares, reducing their holdings by 33.37% and 41.00% respectively.
• McKesson announced an increase in its quarterly dividend to $0.82 per share, a rise from the previous $0.71, with the dividend yielding around 0.5% annually.

Mechanics Bank Trust Department trimmed its stake in McKesson Corporation (NYSE:MCK - Free Report) by 22.0% during the 2nd quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 3,178 shares of the company's stock after selling 896 shares during the period. Mechanics Bank Trust Department's holdings in McKesson were worth $2,329,000 as of its most recent SEC filing.

A number of other large investors have also made changes to their positions in MCK. Oppenheimer Asset Management Inc. lifted its position in shares of McKesson by 54.0% in the 1st quarter. Oppenheimer Asset Management Inc. now owns 4,541 shares of the company's stock worth $3,056,000 after acquiring an additional 1,592 shares during the period. Dynamic Advisor Solutions LLC lifted its position in McKesson by 16.6% in the first quarter. Dynamic Advisor Solutions LLC now owns 778 shares of the company's stock worth $524,000 after purchasing an additional 111 shares during the period. Cambridge Investment Research Advisors Inc. boosted its stake in McKesson by 18.9% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 23,033 shares of the company's stock worth $15,501,000 after buying an additional 3,659 shares in the last quarter. Acadian Asset Management LLC increased its holdings in McKesson by 22.0% in the 1st quarter. Acadian Asset Management LLC now owns 378,926 shares of the company's stock valued at $254,979,000 after buying an additional 68,294 shares during the period. Finally, Wealth Enhancement Advisory Services LLC lifted its holdings in shares of McKesson by 4.3% during the 1st quarter. Wealth Enhancement Advisory Services LLC now owns 183,258 shares of the company's stock worth $123,332,000 after acquiring an additional 7,556 shares during the period. Institutional investors and hedge funds own 85.07% of the company's stock.

McKesson Trading Down 0.2%

Shares of NYSE:MCK traded down $1.26 during trading on Monday, hitting $697.05. 583,806 shares of the company's stock were exchanged, compared to its average volume of 678,052. The firm has a 50-day moving average price of $694.76 and a two-hundred day moving average price of $697.18. The firm has a market cap of $86.70 billion, a P/E ratio of 27.79, a PEG ratio of 1.39 and a beta of 0.51. 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 issued its quarterly earnings data on Wednesday, August 6th. The company reported $8.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $8.33 by ($0.07). The firm had revenue of $97.83 billion for the quarter, compared to analyst estimates of $95.93 billion. McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The firm's revenue for the quarter was up 23.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $7.88 EPS. As a group, research analysts predict that McKesson Corporation will post 32.77 EPS for the current year.

McKesson Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be paid a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend is Tuesday, September 2nd. This is a boost from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio (DPR) is currently 13.08%.

Analyst Upgrades and Downgrades

A number of analysts recently weighed in on the stock. Wells Fargo & Company upped their target price on shares of McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 13th. Morgan Stanley reiterated an "overweight" rating and issued a $810.00 price objective (up from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Evercore ISI increased their target price on McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a report on Wednesday, July 9th. Cowen reaffirmed a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. Finally, Wall Street Zen cut McKesson from a "buy" rating to a "hold" rating in a research report on Saturday. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $725.10.

Insider Buying and Selling

In related news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of McKesson stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $663.67, for a total transaction of $218,347.43. Following the completion of the sale, the chief accounting officer directly owned 657 shares of the company's stock, valued at approximately $436,031.19. This trade represents a 33.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Brian S. Tyler sold 19,371 shares of the firm's stock in a transaction that occurred on 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 in the company, valued at $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. In the last ninety days, insiders have sold 43,560 shares of company stock valued at $30,438,602. Insiders own 0.08% of the company's stock.

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.