NewEdge Advisors LLC Increases Holdings in McKesson Corporation $MCK

Key Points

• NewEdge Advisors LLC increased its stake in McKesson Corporation by 7.4% during the first quarter, owning nearly 15,000 shares valued at over $10 million.
• McKesson recently declared an increased quarterly dividend of $0.82 per share, reflecting a rise from the previous $0.71, with a scheduled payment on October 1st.
• The company reported a revenue of $97.83 billion in its latest earnings, exceeding analyst estimates, although its earnings per share missed expectations.

NewEdge Advisors LLC lifted its position in McKesson Corporation (NYSE:MCK - Free Report) by 7.4% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The fund owned 14,989 shares of the company's stock after purchasing an additional 1,032 shares during the quarter. NewEdge Advisors LLC's holdings in McKesson were worth $10,088,000 as of its most recent SEC filing.

Several other institutional investors have also recently modified their holdings of MCK. GAMMA Investing LLC raised its stake in shares of McKesson by 75,632.7% in the first quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock worth $1,610,567,000 after purchasing an additional 2,389,992 shares during the last quarter. Nuveen LLC purchased a new position in McKesson during the first quarter valued at approximately $475,235,000. Wellington Management Group LLP raised its position in McKesson by 4,559.6% during the first quarter. Wellington Management Group LLP now owns 427,703 shares of the company's stock valued at $287,840,000 after acquiring an additional 418,524 shares in the last quarter. Boston Partners raised its position in McKesson by 33.3% during the first quarter. Boston Partners now owns 1,461,785 shares of the company's stock valued at $984,927,000 after acquiring an additional 365,484 shares in the last quarter. Finally, Leigh Baldwin & CO. LLC purchased a new position in McKesson during the fourth quarter valued at approximately $182,861,000. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

Insider Buying and Selling

In related news, CEO Brian S. Tyler sold 11,930 shares of McKesson stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the transaction, the chief executive officer owned 4,012 shares in the company, valued at approximately $2,830,987.56. This trade represents a 74.83% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, 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 value of $218,347.43. Following the transaction, the chief accounting officer owned 657 shares in the company, valued at approximately $436,031.19. The trade was a 33.37% decrease in their position. The disclosure for this sale can be found here. Insiders sold 43,560 shares of company stock worth $30,438,602 over the last ninety days. Corporate insiders own 0.08% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts recently weighed in on the company. Wells Fargo & Company lifted their price target on McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 13th. Wall Street Zen cut McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Evercore ISI lifted their price target on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. Morgan Stanley reiterated an "overweight" rating and set a $810.00 price target (up from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. Finally, Cowen reiterated a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $725.10.

McKesson Stock Performance

Shares of NYSE:MCK traded down $6.02 during trading on Friday, reaching $713.78. The stock had a trading volume of 176,024 shares, compared to its average volume of 874,760. The business has a fifty day moving average price of $697.97 and a 200-day moving average price of $693.40. The stock has a market cap of $88.78 billion, a PE ratio of 28.50, a PEG ratio of 1.40 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 results 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 during 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%.The business's revenue was up 23.4% on a year-over-year basis. During the same period in the prior 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 year.

McKesson Increases Dividend

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

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.