McKesson Corporation $MCK Shares Sold by Redwood Investment Management LLC

Key Points

• Redwood Investment Management LLC significantly reduced its stake in McKesson Corporation by 90.5% in the first quarter, leaving it with only 2,439 shares valued at approximately $1.64 million.
• Other hedge funds showed contrasting trends, with GAMMA Investing LLC increasing its position by an astounding 75,632.7%, now owning over 2.39 million shares worth around $1.61 billion.
• McKesson recently announced a dividend increase, declaring a quarterly dividend of $0.82 per share, up from $0.71, reflecting a 0.5% yield for investors.

Redwood Investment Management LLC lessened its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 90.5% during the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 2,439 shares of the company's stock after selling 23,342 shares during the period. Redwood Investment Management LLC's holdings in McKesson were worth $1,642,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. GAMMA Investing LLC boosted its stake in McKesson by 75,632.7% during the first quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock worth $1,610,567,000 after buying an additional 2,389,992 shares during the period. Nuveen LLC acquired a new position in shares of McKesson in the 1st quarter worth approximately $475,235,000. Farallon Capital Management LLC acquired a new position in shares of McKesson in the 4th quarter worth approximately $348,044,000. Wellington Management Group LLP increased its holdings in McKesson by 4,559.6% in the 1st 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 last quarter. Finally, Boston Partners raised its position in McKesson by 33.3% in 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. 85.07% of the stock is owned by institutional investors and hedge funds.

Insiders Place Their Bets

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 transaction, 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 ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Brian S. Tyler sold 19,371 shares of the firm's stock in a transaction dated Friday, July 11th. The stock was sold at an average price of $708.09, for a total value of $13,716,411.39. Following the transaction, the chief executive officer directly owned 27,872 shares in the company, valued at approximately $19,735,884.48. This represents a 41.00% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 62,930 shares of company stock worth $44,112,466 over the last ninety days. Corporate insiders own 0.08% of the company's stock.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Morgan Stanley restated an "overweight" rating and set a $810.00 price target (up from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. Wells Fargo & Company raised their target price on McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a report on Wednesday, August 13th. Bank of America lifted 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 raised their price objective on shares of McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a research note on Wednesday, July 9th. Finally, Cowen restated a "buy" rating on shares of McKesson in a report on Thursday, August 7th. One 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. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $725.10.

McKesson Trading Up 0.8%

NYSE:MCK traded up $5.42 during trading hours on Friday, hitting $686.44. The company's stock had a trading volume of 880,317 shares, compared to its average volume of 984,242. The stock has a market capitalization of $85.38 billion, a P/E ratio of 27.37, a price-to-earnings-growth ratio of 1.35 and a beta of 0.50. McKesson Corporation has a 52-week low of $464.42 and a 52-week high of $737.89. The stock has a fifty day moving average of $702.44 and a 200-day moving average of $687.34.

McKesson (NYSE:MCK - Get Free Report) last posted 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 firm had revenue of $97.83 billion for the quarter, compared to analyst estimates of $95.93 billion. McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.The firm's revenue for the quarter was up 23.4% on a year-over-year basis. During the same quarter last year, the firm posted $7.88 EPS. On average, sell-side analysts forecast 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 given a dividend of $0.82 per share. 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. The ex-dividend date is Tuesday, September 2nd. McKesson's payout ratio is 11.32%.

About McKesson

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.