Russell Investments Group Ltd. Buys 23,096 Shares of McKesson Corporation (NYSE:MCK)

Key Points

• Russell Investments Group Ltd. increased its holdings in McKesson Corporation by 8.1% in the first quarter, acquiring an additional 23,096 shares to total 308,235 shares, valued at approximately $207.36 million.
• Several institutional investors, including Resona Asset Management and Rathbones Group, also raised their positions in McKesson, indicating strong interest in the stock among large market players.
• McKesson recently raised its quarterly dividend from $0.71 to $0.82, reflecting a commitment to returning value to shareholders, with a current dividend yield of 0.5%.

Russell Investments Group Ltd. raised its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 8.1% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 308,235 shares of the company's stock after purchasing an additional 23,096 shares during the quarter. Russell Investments Group Ltd. owned 0.25% of McKesson worth $207,362,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Resona Asset Management Co. Ltd. increased its stake in 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 purchasing an additional 2,399 shares in the last quarter. Rathbones Group PLC grew its stake in shares of 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 acquiring an additional 24,962 shares in the last quarter. Callan Family Office LLC grew its stake in shares of McKesson by 4.3% in the 1st quarter. Callan Family Office LLC now owns 842 shares of the company's stock worth $567,000 after acquiring an additional 35 shares in the last quarter. HighTower Advisors LLC grew its stake in shares of McKesson by 2.0% in the 1st 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 in the last quarter. Finally, Trajan Wealth LLC grew its stake in shares of McKesson by 5.2% in the 1st quarter. Trajan Wealth LLC now owns 14,336 shares of the company's stock worth $9,648,000 after acquiring an additional 704 shares in the last quarter. Institutional investors own 85.07% of the company's stock.

McKesson Price Performance

Shares of MCK traded down $0.96 during midday trading on Friday, hitting $672.86. 630,703 shares of the company traded hands, compared to its average volume of 894,094. The stock has a 50-day moving average of $710.37 and a 200-day moving average of $681.11. McKesson Corporation has a one year low of $464.42 and a one year high of $737.89. The firm has a market cap of $83.69 billion, a P/E ratio of 26.83, a PEG ratio of 1.32 and a beta of 0.50.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The company reported $8.26 earnings per share for the quarter, missing the consensus estimate of $8.33 by ($0.07). The company had revenue of $97.83 billion during the quarter, compared to the consensus estimate 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 company posted $7.88 earnings per share. Sell-side analysts forecast that McKesson Corporation will post 32.77 EPS for the current fiscal year.

McKesson Increases Dividend

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

Insider Buying and Selling at McKesson

In other McKesson news, 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 transaction, the chief executive officer directly owned 27,872 shares in the company, valued at $19,735,884.48. This trade represents a 41.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Britt J. Vitalone sold 6,336 shares of the stock in a transaction that occurred on 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 transaction, the chief financial officer owned 14,760 shares in the company, valued at $10,587,348. The trade was a 30.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 52,817 shares of company stock valued at $37,461,210. 0.08% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

MCK has been the subject of several recent analyst reports. Wells Fargo & Company set a $772.00 target price on shares of McKesson and gave the stock an "equal weight" rating in a research note on Wednesday. Bank of America boosted their price target on shares of McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a report on Friday, May 9th. UBS Group boosted their price target on shares of McKesson from $708.00 to $805.00 and gave the stock a "buy" rating in a report on Tuesday, April 29th. Evercore ISI boosted their price target on shares of McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a report on Wednesday, July 9th. Finally, Cowen reissued a "buy" rating on shares of McKesson in a report on Thursday, August 7th. Three analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, McKesson presently has a consensus rating of "Moderate Buy" and a consensus target price 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.