Price T Rowe Associates Inc. MD Acquires 107,638 Shares of McKesson Corporation $MCK

Key Points

• Price T Rowe Associates Inc. MD increased its stake in McKesson Corporation by 9.1% during the 1st quarter, acquiring an additional 107,638 shares to own a total of 1,290,116 shares worth approximately $868,237,000.
• McKesson recently announced a quarterly dividend of $0.82 per share, which reflects an increase from the previous dividend of $0.71, indicating a commitment to returning capital to shareholders.
• McKesson's recent earnings report showed a net margin of 0.84% on revenue of $97.83 billion, which was above analyst estimates, although their EPS of $8.26 fell short of the expected $8.33.

Price T Rowe Associates Inc. MD lifted its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 9.1% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 1,290,116 shares of the company's stock after acquiring an additional 107,638 shares during the quarter. Price T Rowe Associates Inc. MD owned approximately 1.03% of McKesson worth $868,237,000 as of its most recent SEC filing.

A number of other institutional investors have also made changes to their positions in MCK. Capital A Wealth Management LLC bought a new position in McKesson during the fourth quarter worth $26,000. Bank of Jackson Hole Trust boosted 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 worth $29,000 after buying an additional 18 shares during the period. CBIZ Investment Advisory Services LLC grew its stake in McKesson by 1,366.7% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after buying an additional 41 shares during the last quarter. Pandora Wealth Inc. bought a new position in McKesson in the 1st quarter valued at about $40,000. Finally, Dagco Inc. acquired a new stake in McKesson during the first quarter worth approximately $47,000. 85.07% of the stock is owned by institutional investors and hedge funds.

McKesson Price Performance

Shares of NYSE MCK opened at $706.1240 on Friday. The company has a 50 day simple moving average of $707.48 and a 200 day simple moving average of $684.02. McKesson Corporation has a 1 year low of $464.42 and a 1 year high of $737.89. The firm has a market cap of $87.83 billion, a PE ratio of 28.15, a price-to-earnings-growth ratio of 1.40 and a beta of 0.50.

McKesson (NYSE:MCK - Get Free Report) last announced its quarterly earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $8.33 by ($0.07). The business had revenue of $97.83 billion during the quarter, compared to analyst estimates of $95.93 billion. McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The company's revenue was up 23.4% compared to the same quarter last year. During the same quarter last year, the company posted $7.88 earnings per share. As a group, research analysts anticipate that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be given a dividend of $0.82 per share. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $3.28 annualized dividend and a yield of 0.5%. This is an increase from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio is 11.32%.

Insider Activity

In related news, CFO Britt J. Vitalone sold 1,878 shares of McKesson stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $717.91, for a total value of $1,348,234.98. Following the transaction, the chief financial officer directly owned 14,028 shares of the company's stock, valued at $10,070,841.48. The trade was a 11.81% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Brian S. Tyler sold 19,371 shares of the stock in a transaction that occurred on 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 sale, the chief executive officer directly 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 disclosure for this sale can be found here. In the last three months, insiders sold 56,620 shares of company stock worth $39,712,388. 0.08% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on MCK shares. Cowen reaffirmed a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. UBS Group upped their price objective on McKesson from $708.00 to $805.00 and gave the company a "buy" rating in a report on Tuesday, April 29th. Bank of America upped their target price on McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a research report on Friday, May 9th. Evercore ISI lifted their price target on shares of McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Finally, Morgan Stanley reiterated an "overweight" rating and set a $810.00 price objective (up from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $725.10.

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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