Muhlenkamp & Co. Inc. Reduces Stake in McKesson Corporation $MCK

Key Points

• Muhlenkamp & Co. Inc. has reduced its stake in McKesson Corporation (NYSE:MCK) by 29.8%, now holding 27,084 shares valued at approximately $19.85 million.
• McKesson's recent quarterly earnings report showed earnings of $8.26 per share, falling short of expectations, with revenues increasing by 23.4% year-over-year to $97.83 billion.
• The company has increased its quarterly dividend from $0.71 to $0.82 per share, indicating a commitment to return value to shareholders.

Muhlenkamp & Co. Inc. cut its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 29.8% during the second quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 27,084 shares of the company's stock after selling 11,505 shares during the period. McKesson accounts for 6.2% of Muhlenkamp & Co. Inc.'s holdings, making the stock its 2nd biggest holding. Muhlenkamp & Co. Inc.'s holdings in McKesson were worth $19,847,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently modified their holdings of MCK. Bank of Jackson Hole Trust boosted its stake in shares of McKesson by 64.3% during the first quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock valued at $29,000 after purchasing an additional 18 shares in the last quarter. CBIZ Investment Advisory Services LLC raised its holdings in McKesson by 1,366.7% in the first quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock worth $30,000 after purchasing an additional 41 shares in the last quarter. Saudi Central Bank bought a new position in McKesson in the first quarter worth about $34,000. Flaharty Asset Management LLC bought a new position in McKesson in the first quarter worth about $39,000. Finally, Pandora Wealth Inc. bought a new position in McKesson in the first quarter worth about $40,000. 85.07% of the stock is currently owned by institutional investors.

Insider Activity

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $663.67, for a total transaction of $218,347.43. Following 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CEO Brian S. Tyler sold 11,930 shares of the business's stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the completion of the transaction, the chief executive officer owned 4,012 shares of the company's stock, valued at approximately $2,830,987.56. This represents a 74.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 43,560 shares of company stock worth $30,438,602 over the last ninety days. 0.08% of the stock is owned by insiders.

McKesson Price Performance

Shares of McKesson stock opened at $755.32 on Thursday. The firm has a fifty day moving average price of $704.88 and a 200 day moving average price of $704.72. McKesson Corporation has a 1 year low of $492.39 and a 1 year high of $776.14. The stock has a market cap of $93.95 billion, a PE ratio of 30.12, a price-to-earnings-growth ratio of 1.35 and a beta of 0.52.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share for the quarter, missing the consensus estimate of $8.33 by ($0.07). The company had revenue of $97.83 billion for the quarter, compared to analyst estimates 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 in the prior year, the business posted $7.88 earnings per share. As a group, equities analysts expect that McKesson Corporation will post 32.77 EPS for the current year.

McKesson Increases Dividend

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

Analysts Set New Price Targets

Several equities research analysts have weighed in on the stock. JPMorgan Chase & Co. raised their target price on shares of McKesson from $821.00 to $853.00 and gave the company an "overweight" rating in a research note on Friday, September 26th. UBS Group raised their price objective on McKesson from $820.00 to $860.00 and gave the stock a "buy" rating in a research report on Wednesday, September 24th. Leerink Partners raised their price objective on McKesson from $785.00 to $850.00 and gave the stock an "outperform" rating in a research report on Wednesday, September 24th. Evercore ISI raised their price objective on McKesson from $800.00 to $825.00 and gave the stock an "outperform" rating in a research report on Wednesday, September 24th. Finally, Wall Street Zen raised McKesson from a "hold" rating to a "buy" rating in a research report on Sunday, September 28th. One research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and three have given a Hold rating to the company's stock. Based on data from MarketBeat, McKesson presently has an average rating of "Moderate Buy" and an average target price of $829.08.

McKesson Company 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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