Morningstar Investment Management LLC Takes $435,000 Position in McKesson Corporation $MCK

Key Points

• Morningstar Investment Management LLC acquired a new stake in McKesson Corporation, purchasing 593 shares valued at approximately $435,000.
• McKesson's quarterly earnings reported an EPS of $8.26, falling short of analyst expectations, yet the company's revenue increased 23.4% year-over-year.
• The company recently increased its quarterly dividend to $0.82 per share, representing a boost from the previous dividend of $0.71.

Morningstar Investment Management LLC purchased a new stake in shares of McKesson Corporation (NYSE:MCK - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm purchased 593 shares of the company's stock, valued at approximately $435,000.

Other large investors have also recently modified their holdings of the company. GFG Capital LLC bought a new stake in shares of McKesson during the 2nd quarter valued at about $30,000. CBIZ Investment Advisory Services LLC boosted its position in shares of McKesson by 1,366.7% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after acquiring an additional 41 shares during the last quarter. Bank of Jackson Hole Trust raised its holdings in shares of McKesson by 64.3% during the 1st quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock valued at $29,000 after buying an additional 18 shares in the last quarter. Saudi Central Bank purchased a new position in shares of McKesson during the 1st quarter valued at about $34,000. Finally, Flaharty Asset Management LLC purchased a new position in shares of McKesson during the 1st quarter valued at about $39,000. Institutional investors own 85.07% of the company's stock.

McKesson Price Performance

Shares of McKesson stock opened at $782.07 on Wednesday. The business's 50 day simple moving average is $710.10 and its two-hundred day simple moving average is $707.89. The stock has a market capitalization of $97.27 billion, a P/E ratio of 31.18, a price-to-earnings-growth ratio of 1.39 and a beta of 0.52. McKesson Corporation has a one year low of $492.39 and a one year high of $783.89.

McKesson (NYSE:MCK - Get Free Report) last announced 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 company had revenue of $97.83 billion during the quarter, compared to analysts' expectations of $95.93 billion. McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.McKesson's revenue for the quarter was up 23.4% on a year-over-year basis. During the same period last year, the firm earned $7.88 earnings per share. Sell-side analysts expect that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd were paid a dividend of $0.82 per share. This represents a $3.28 annualized dividend and a dividend yield of 0.4%. This is a boost from McKesson's previous quarterly dividend of $0.71. The ex-dividend date of this dividend was Tuesday, September 2nd. McKesson's payout ratio is presently 13.08%.

Insider Activity at McKesson

In other news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the business's 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 transaction, the chief accounting officer directly owned 657 shares of the company's stock, valued at approximately $436,031.19. The trade was a 33.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Brian S. Tyler sold 11,930 shares of the business's stock in a transaction that occurred on Friday, August 22nd. The shares were sold at an average price of $705.63, for a total value of $8,418,165.90. Following the transaction, the chief executive officer directly owned 4,012 shares in the company, valued at $2,830,987.56. This trade represents a 74.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 24,189 shares of company stock worth $16,722,190 over the last three months. Insiders own 0.08% of the company's stock.

Analyst Upgrades and Downgrades

MCK has been the topic of a number of research reports. JPMorgan Chase & Co. raised their price objective on McKesson from $821.00 to $853.00 and gave the company an "overweight" rating in a report on Friday, September 26th. Deutsche Bank Aktiengesellschaft raised their price objective on McKesson from $775.00 to $856.00 and gave the company a "buy" rating in a report on Wednesday, September 24th. Evercore ISI raised their price objective on McKesson from $800.00 to $825.00 and gave the company an "outperform" rating in a report on Wednesday, September 24th. Leerink Partners raised their price objective on McKesson from $785.00 to $850.00 and gave the company an "outperform" rating in a report on Wednesday, September 24th. Finally, TD Cowen raised their price objective on McKesson from $830.00 to $864.00 and gave the company a "buy" rating in a report on Wednesday, September 24th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $834.54.

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.

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