McKesson Corporation (NYSE:MCK) Stock Position Reduced by Mizuho Securities USA LLC

Key Points

• Mizuho Securities USA LLC has reduced its stake in McKesson Corporation to $6.75 million, representing a 16.6% decrease during the first quarter.
• Analysts have raised their price targets for McKesson, with firms like Evercore ISI and Bank of America setting objectives at $800, indicating a strong buy sentiment.
• McKesson recently increased its quarterly dividend from $0.71 to $0.82, reflecting a commitment to returning value to shareholders.

Mizuho Securities USA LLC trimmed its position in shares of McKesson Corporation (NYSE:MCK - Free Report) by 16.6% during the first quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 10,035 shares of the company's stock after selling 1,996 shares during the quarter. Mizuho Securities USA LLC's holdings in McKesson were worth $6,753,000 at the end of the most recent reporting period.

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

McKesson Stock Performance

Shares of MCK stock traded down $13.99 during trading hours on Tuesday, reaching $658.78. The company had a trading volume of 1,644,064 shares, compared to its average volume of 798,322. The company has a market capitalization of $81.94 billion, a P/E ratio of 26.27, a price-to-earnings-growth ratio of 1.34 and a beta of 0.50. McKesson Corporation has a twelve month low of $464.42 and a twelve month high of $737.89. The stock's fifty day simple moving average is $712.03 and its 200 day simple moving average is $680.75.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly 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 business had revenue of $97.83 billion during the quarter, compared to analysts' expectations of $95.93 billion. McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The company's revenue for the quarter was up 23.4% on a year-over-year basis. During the same period in the prior year, the company posted $7.88 EPS. As a group, equities analysts expect that McKesson Corporation will post 32.77 earnings per share for the current year.

McKesson Increases Dividend

The firm 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 $0.82 dividend. This is an increase from McKesson's previous quarterly dividend of $0.71. 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. McKesson's dividend payout ratio (DPR) is currently 11.32%.

Insider Transactions at McKesson

In related news, CAO Napoleon B. Rutledge, Jr. sold 543 shares of the stock in a transaction dated Monday, May 19th. The stock was sold at an average price of $726.51, for a total value of $394,494.93. Following the completion of the transaction, the chief accounting officer owned 1,972 shares of the company's stock, valued at approximately $1,432,677.72. This represents a 21.59% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, EVP Leann B. Smith sold 1,248 shares of the stock in a transaction dated Thursday, May 22nd. The shares were sold at an average price of $717.30, for a total value of $895,190.40. Following the completion of the transaction, the executive vice president directly owned 2,621 shares of the company's stock, valued at $1,880,043.30. This represents a 32.26% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 52,817 shares of company stock valued at $37,461,210 in the last three months. 0.08% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

Several equities research analysts have commented on MCK shares. Evercore ISI upped their price target on McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 9th. Wall Street Zen lowered McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. Morgan Stanley restated an "overweight" rating and set a $810.00 price target (up from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Bank of America upped their price target on McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research note on Friday, May 9th. Finally, Wells Fargo & Company set a $766.00 price target on McKesson and gave the stock an "equal weight" rating in a research note on Tuesday, June 3rd. Three investment analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $718.73.

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.