Paloma Partners Management Co Takes $927,000 Position in McKesson Corporation $MCK

Key Points

• Paloma Partners Management Co has acquired a new position in McKesson Corporation, investing approximately $927,000 for 1,378 shares in the 1st quarter.
• Several hedge funds have increased their stakes in McKesson, with Oppenheimer Asset Management growing its position by 54% during the same period.
• McKesson plans to increase its quarterly dividend to $0.82, reflecting a rise from the previous dividend of $0.71, with a payout ratio of 13.08%.

Paloma Partners Management Co purchased a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm purchased 1,378 shares of the company's stock, valued at approximately $927,000.

Other institutional investors and hedge funds have also modified their holdings of the company. Capital A Wealth Management LLC purchased a new position in shares of McKesson during the 4th quarter worth $26,000. Bank of Jackson Hole Trust boosted its stake 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 worth $29,000 after acquiring an additional 18 shares during the last quarter. CBIZ Investment Advisory Services LLC boosted its stake 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 worth $30,000 after acquiring an additional 41 shares during the last quarter. Saudi Central Bank purchased a new position in shares of McKesson during the 1st quarter worth $34,000. Finally, Pandora Wealth Inc. purchased a new position in shares of McKesson during the 1st quarter worth $40,000. Hedge funds and other institutional investors own 85.07% of the company's stock.

McKesson Stock Performance

Shares of MCK traded down $4.42 during midday trading on Friday, hitting $687.03. 472,767 shares of the company traded hands, compared to its average volume of 808,316. The firm has a 50 day moving average of $699.12 and a 200-day moving average of $690.52. McKesson Corporation has a 52 week low of $464.42 and a 52 week high of $737.89. The stock has a market cap of $85.45 billion, a price-to-earnings ratio of 27.39, a PEG ratio of 1.37 and a beta of 0.51.

McKesson (NYSE:MCK - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The company reported $8.26 EPS for the quarter, missing the consensus estimate of $8.33 by ($0.07). McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The company had revenue of $97.83 billion for the quarter, compared to the consensus estimate of $95.93 billion. During the same period last year, the company earned $7.88 EPS. The firm's revenue for the quarter was up 23.4% on a year-over-year basis. Sell-side analysts predict that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd will be issued a dividend of $0.82 per share. This is a boost from McKesson's previous quarterly dividend of $0.71. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $3.28 annualized dividend and a dividend yield of 0.5%. McKesson's payout ratio is currently 13.08%.

Analysts Set New Price Targets

Several brokerages have recently weighed in on MCK. Morgan Stanley reiterated an "overweight" rating and set a $810.00 price target (up previously from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Cowen restated a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. Bank of America upped their target price on shares of McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a report on Friday, May 9th. Wells Fargo & Company upped their target price on shares of McKesson from $766.00 to $772.00 and gave the stock an "equal weight" rating in a report on Wednesday, August 13th. Finally, Evercore ISI upped their target price on shares of McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a report on Wednesday, July 9th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $725.10.

Insider Activity

In other McKesson news, CEO Brian S. Tyler sold 19,371 shares of the stock in a transaction dated Friday, July 11th. The shares were sold at an average price of $708.09, for a total transaction of $13,716,411.39. Following the completion of the transaction, the chief executive officer owned 27,872 shares of the company's stock, valued at $19,735,884.48. This represents a 41.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the company's stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $663.67, for a total transaction of $218,347.43. Following the sale, the chief accounting officer owned 657 shares in the company, valued at $436,031.19. This represents a 33.37% 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 valued at $30,438,602 in the last three months. Insiders own 0.08% of the company's stock.

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.