Prudential PLC Decreases Stock Holdings in McKesson Corporation (NYSE:MCK)

Key Points

• Prudential PLC reduced its stake in McKesson Corporation by 30.9%, selling 2,568 shares and leaving it with 5,743 shares valued at approximately $3.87 million.
• McKesson recently declared a quarterly dividend of $0.82, increasing from its previous dividend of $0.71, resulting in an annualized yield of 0.5%.
• Analysts maintain positive outlooks for McKesson, with several firms raising their price targets, contributing to a consensus rating of "Moderate Buy" and an average target price of $719.27.

Prudential PLC lowered its position in McKesson Corporation (NYSE:MCK - Free Report) by 30.9% in the 1st quarter, according to its most recent 13F filing with the SEC. The firm owned 5,743 shares of the company's stock after selling 2,568 shares during the period. Prudential PLC's holdings in McKesson were worth $3,865,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also made changes to their positions in the stock. Resona Asset Management Co. Ltd. raised its position in shares of McKesson by 4.6% during the 1st quarter. Resona Asset Management Co. Ltd. now owns 54,797 shares of the company's stock valued at $36,848,000 after buying an additional 2,399 shares in the last quarter. Rathbones Group PLC raised its position in McKesson by 89.6% in the 1st quarter. Rathbones Group PLC now owns 52,826 shares of the company's stock worth $35,551,000 after purchasing an additional 24,962 shares during the period. Callan Family Office LLC increased its position in shares of McKesson by 4.3% during the first quarter. Callan Family Office LLC now owns 842 shares of the company's stock worth $567,000 after acquiring an additional 35 shares during the period. HighTower Advisors LLC increased its position in shares of McKesson by 2.0% during the first quarter. HighTower Advisors LLC now owns 73,868 shares of the company's stock worth $49,712,000 after acquiring an additional 1,460 shares during the period. Finally, Trajan Wealth LLC increased its position in shares of McKesson by 5.2% during the first quarter. Trajan Wealth LLC now owns 14,336 shares of the company's stock worth $9,648,000 after acquiring an additional 704 shares during the period. Institutional investors own 85.07% of the company's stock.

McKesson Stock Down 0.1%

NYSE:MCK traded down $0.96 during trading hours on Friday, reaching $672.86. 630,704 shares of the company's stock were exchanged, compared to its average volume of 883,823. The firm has a market capitalization of $83.69 billion, a price-to-earnings ratio of 26.83, a P/E/G ratio of 1.34 and a beta of 0.50. The company has a 50-day moving average of $709.57 and a 200 day moving average of $681.59. 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 released its earnings results 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 negative return on equity of 196.66% and a net margin of 0.84%. The firm had revenue of $97.83 billion during the quarter, compared to analyst estimates of $95.93 billion. During the same quarter last year, the business posted $7.88 EPS. The firm's revenue was up 23.4% on a year-over-year basis. Research analysts forecast that McKesson Corporation will post 32.77 EPS for the current fiscal year.

McKesson Increases Dividend

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

Insiders Place Their Bets

In other McKesson news, CFO Britt J. Vitalone sold 6,336 shares of the firm's stock in a transaction dated Thursday, May 22nd. The shares were sold at an average price of $717.30, for a total transaction of $4,544,812.80. Following the completion of the transaction, the chief financial officer directly owned 14,760 shares in the company, valued at approximately $10,587,348. This trade represents a 30.03% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Thomas L. Rodgers sold 2,891 shares of the firm's stock in a transaction dated Friday, May 30th. The shares were sold at an average price of $712.18, for a total transaction of $2,058,912.38. Following the transaction, the executive vice president owned 2,544 shares of the company's stock, valued at $1,811,785.92. This trade represents a 53.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 52,817 shares of company stock worth $37,461,210. Insiders own 0.08% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have recently issued reports on MCK. Bank of America increased their price objective on shares of McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a research note on Friday, May 9th. UBS Group raised their target price on shares of McKesson from $708.00 to $805.00 and gave the company a "buy" rating in a research note on Tuesday, April 29th. Wall Street Zen downgraded shares of McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. Wells Fargo & Company set a $772.00 target price on shares of McKesson and gave the company an "equal weight" rating in a research note on Wednesday. Finally, Morgan Stanley restated an "overweight" rating and issued a $810.00 target price (up from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Three analysts have rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $719.27.

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.