Patton Fund Management Inc. Acquires New Holdings in McKesson Corporation $MCK

Key Points

• Patton Fund Management Inc. has acquired a new stake in McKesson Corporation worth approximately $3.37 million, representing about 2.4% of its investment portfolio.
• McKesson announced a quarterly dividend increase to $0.82 per share, reflecting a positive shift from its previous dividend.
• Analysts have varied ratings on McKesson, with targets ranging from $770.00 to $853.00 and a consensus rating of "Moderate Buy."

Patton Fund Management Inc. acquired a new stake in shares of McKesson Corporation (NYSE:MCK - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 4,597 shares of the company's stock, valued at approximately $3,369,000. McKesson accounts for about 2.4% of Patton Fund Management Inc.'s investment portfolio, making the stock its 25th largest holding.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in MCK. GAMMA Investing LLC lifted its position in McKesson by 75,632.7% during 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 period. Nuveen LLC bought a new position in McKesson during the first quarter valued at approximately $475,235,000. Wellington Management Group LLP lifted 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 purchasing an additional 418,524 shares during the period. Boston Partners lifted 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 purchasing an additional 365,484 shares during the period. Finally, Voya Investment Management LLC lifted its position in McKesson by 92.3% during the first quarter. Voya Investment Management LLC now owns 650,851 shares of the company's stock valued at $437,760,000 after purchasing an additional 312,473 shares during the period. Institutional investors own 85.07% of the company's stock.

McKesson Price Performance

Shares of MCK stock opened at $760.82 on Friday. The company has a market capitalization of $94.63 billion, a price-to-earnings ratio of 30.34, a PEG ratio of 1.32 and a beta of 0.51. McKesson Corporation has a one year low of $479.15 and a one year high of $770.00. The company's fifty day moving average price is $697.79 and its 200-day moving average price is $699.19.

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

McKesson Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be given a dividend of $0.82 per share. This represents a $3.28 annualized dividend and a dividend yield of 0.4%. The ex-dividend date is Tuesday, September 2nd. This is a positive change from McKesson's previous quarterly dividend of $0.71. McKesson's payout ratio is 13.08%.

Wall Street Analysts Forecast Growth

MCK has been the topic of several recent research reports. Wall Street Zen downgraded shares of McKesson from a "buy" rating to a "hold" rating in a research report on Saturday, September 20th. Cowen reiterated a "buy" rating on shares of McKesson in a research note on Wednesday. JPMorgan Chase & Co. lifted their price target on shares of McKesson from $821.00 to $853.00 and gave the stock an "overweight" rating in a research note on Friday. Bank of America lifted their price target on shares of McKesson from $800.00 to $850.00 and gave the stock a "buy" rating in a research note on Wednesday. Finally, Mizuho lifted their price target on shares of McKesson from $750.00 to $770.00 and gave the stock a "neutral" rating in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $829.08.

Insider Buying and Selling at McKesson

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of McKesson stock in a transaction on Friday, August 8th. The shares were sold at an average price of $663.67, for a total value of $218,347.43. Following the sale, the chief accounting officer directly owned 657 shares in the company, valued at approximately $436,031.19. The trade was a 33.37% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Brian S. Tyler sold 11,930 shares of McKesson 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 sale, the chief executive officer owned 4,012 shares in the company, 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 90 days. 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.

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