Public Sector Pension Investment Board Increases Holdings in McKesson Corporation (NYSE:MCK)

Key Points

• The Public Sector Pension Investment Board increased its stake in McKesson Corporation by 571.3% during the first quarter, now owning 105,212 shares valued at approximately $70.81 million.
• McKesson recently reported $8.26 earnings per share for the quarter, which was below expectations, despite achieving revenue growth of 23.4% year-over-year.
• The company announced an increase in its quarterly dividend to $0.82, up from the previous $0.71, with a payout ratio of 11.32%.

Public Sector Pension Investment Board grew its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 571.3% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 105,212 shares of the company's stock after acquiring an additional 89,539 shares during the period. Public Sector Pension Investment Board owned about 0.08% of McKesson worth $70,807,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors have also made changes to their positions in MCK. Brighton Jones LLC lifted its position in shares of McKesson by 46.3% in the fourth quarter. Brighton Jones LLC now owns 2,523 shares of the company's stock valued at $1,438,000 after acquiring an additional 798 shares in the last quarter. Crux Wealth Advisors purchased a new position in shares of McKesson in the fourth quarter valued at about $291,000. Sagespring Wealth Partners LLC purchased a new position in shares of McKesson in the fourth quarter valued at about $529,000. Advisors Capital Management LLC lifted its position in shares of McKesson by 2.6% in the fourth quarter. Advisors Capital Management LLC now owns 45,959 shares of the company's stock valued at $26,193,000 after acquiring an additional 1,157 shares in the last quarter. Finally, SageView Advisory Group LLC lifted its position in shares of McKesson by 7.9% in the fourth quarter. SageView Advisory Group LLC now owns 1,028 shares of the company's stock valued at $586,000 after acquiring an additional 75 shares in the last quarter. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

McKesson Stock Down 2.1%

NYSE MCK traded down $13.99 during trading hours on Tuesday, hitting $658.78. 1,644,064 shares of the company were exchanged, compared to its average volume of 798,322. The stock has a 50-day moving average price of $712.03 and a 200 day moving average price of $680.75. 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 $81.94 billion, a PE ratio of 26.27, a price-to-earnings-growth ratio of 1.34 and a beta of 0.50.

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 analysts' consensus estimates of $8.33 by ($0.07). The business 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 company's quarterly revenue was up 23.4% compared to the same quarter last year. During the same period in the prior year, the company posted $7.88 EPS. As a group, sell-side analysts anticipate that McKesson Corporation will post 32.77 earnings per share for the current year.

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be paid a dividend of $0.82 per share. This is a positive change 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 payout ratio is currently 11.32%.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on MCK. Wells Fargo & Company set a $766.00 target price on McKesson and gave the stock an "equal weight" rating in a report on Tuesday, June 3rd. Evercore ISI lifted their target price on McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a report on Wednesday, July 9th. Cowen reaffirmed a "buy" rating on shares of McKesson in a report on Thursday, August 7th. Wall Street Zen cut McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Finally, Morgan Stanley reaffirmed an "overweight" rating and issued a $810.00 target price (up from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Three investment analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $718.73.

Insider Activity

In other news, EVP Thomas L. Rodgers sold 2,891 shares of the company's stock in a transaction that occurred on Friday, May 30th. The stock was 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 approximately $1,811,785.92. This represents a 53.19% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Leann B. Smith sold 1,248 shares of the business's stock in a transaction that occurred on Thursday, May 22nd. The shares were sold at an average price of $717.30, for a total value of $895,190.40. Following the completion of the sale, the executive vice president owned 2,621 shares of the company's stock, valued at $1,880,043.30. The trade was a 32.26% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 52,817 shares of company stock valued at $37,461,210. 0.08% of the stock is currently owned by corporate insiders.

McKesson 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.