MGB Wealth Management LLC Purchases 357 Shares of McKesson Corporation (NYSE:MCK)

Key Points

• MGB Wealth Management LLC increased its stake in McKesson Corporation by 10.5%, acquiring an additional 357 shares, bringing its total holdings to 3,752 shares valued at $2,521,000.
• Multiple hedge funds, including Westwood Holdings Group and Natural Investments LLC, have also raised their stakes in McKesson, with over 85% of its stock owned by institutional investors.
• McKesson recently announced a quarterly dividend increase from $0.71 to $0.82, reflecting a 10.99% dividend payout ratio.

MGB Wealth Management LLC raised its position in McKesson Corporation (NYSE:MCK - Free Report) by 10.5% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 3,752 shares of the company's stock after buying an additional 357 shares during the quarter. McKesson comprises about 0.9% of MGB Wealth Management LLC's portfolio, making the stock its 21st largest position. MGB Wealth Management LLC's holdings in McKesson were worth $2,521,000 at the end of the most recent reporting period.

Other hedge funds have also recently bought and sold shares of the company. Natural Investments LLC raised its stake in McKesson by 11.7% during the first quarter. Natural Investments LLC now owns 639 shares of the company's stock worth $430,000 after acquiring an additional 67 shares in the last quarter. Intrust Bank NA raised its stake in McKesson by 6.4% during the first quarter. Intrust Bank NA now owns 484 shares of the company's stock worth $326,000 after acquiring an additional 29 shares in the last quarter. Westwood Holdings Group Inc. raised its stake in McKesson by 81.0% during the first quarter. Westwood Holdings Group Inc. now owns 6,110 shares of the company's stock worth $4,112,000 after acquiring an additional 2,735 shares in the last quarter. McClarren Financial Advisors Inc. raised its stake in McKesson by 80.2% during the first quarter. McClarren Financial Advisors Inc. now owns 672 shares of the company's stock worth $452,000 after acquiring an additional 299 shares in the last quarter. Finally, Cary Street Partners Investment Advisory LLC raised its stake in McKesson by 12.4% during the first quarter. Cary Street Partners Investment Advisory LLC now owns 299 shares of the company's stock worth $201,000 after acquiring an additional 33 shares in the last quarter. 85.07% of the stock is owned by institutional investors.

Analysts Set New Price Targets

MCK has been the subject of several research analyst reports. 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. Bank of America boosted their target price on McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. Wells Fargo & Company set a $766.00 target price on McKesson and gave the stock an "equal weight" rating in a research note on Tuesday, June 3rd. Evercore ISI boosted their target price on McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 9th. Finally, UBS Group boosted their price target on McKesson from $708.00 to $805.00 and gave the stock a "buy" rating in a report on Tuesday, April 29th. Three research 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. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $710.17.

Insiders Place Their Bets

In related news, CAO Napoleon B. Rutledge, Jr. sold 543 shares of the company's stock in a transaction that occurred on Monday, May 19th. The stock was sold at an average price of $726.51, for a total value of $394,494.93. Following the sale, the chief accounting officer directly owned 1,972 shares in the company, valued at $1,432,677.72. This represents a 21.59% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Britt J. Vitalone sold 1,878 shares of the stock in a transaction that occurred 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 transaction, the chief financial officer owned 14,028 shares in the company, valued at $10,070,841.48. The trade was a 11.81% 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 valued at $37,242,862 over the last three months. Insiders own 0.08% of the company's stock.

McKesson Price Performance

Shares of MCK stock opened at $709.15 on Wednesday. The business's 50 day simple moving average is $716.27 and its 200 day simple moving average is $677.85. McKesson Corporation has a one year low of $464.42 and a one year high of $737.89. The stock has a market capitalization of $88.72 billion, a PE ratio of 27.45, a PEG ratio of 1.44 and a beta of 0.50.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results on Thursday, May 8th. The company reported $10.12 EPS for the quarter, beating the consensus estimate of $9.83 by $0.29. McKesson had a negative return on equity of 201.12% and a net margin of 0.92%. The business had revenue of $90.82 billion for the quarter, compared to analysts' expectations of $94 billion. During the same period in the prior year, the business posted $6.18 earnings per share. The firm's revenue was up 18.9% on a year-over-year basis. As a group, research analysts expect 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. Investors of record on Tuesday, September 2nd will be issued a $0.82 dividend. The ex-dividend date is Tuesday, September 2nd. This is a boost from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 annualized dividend and a yield of 0.5%. McKesson's dividend payout ratio (DPR) is currently 10.99%.

About McKesson

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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