Shell Asset Management Co. Increases Holdings in McKesson Corporation $MCK

Key Points

• Shell Asset Management Co. increased its holdings in McKesson Corporation by 19.4% in Q2, bringing its total shares to 7,857, valued at approximately $5.76 million.
• McKesson reported Q2 earnings of $8.26 per share, missing expectations; however, its revenue of $97.83 billion exceeded estimates, reflecting a 23.4% year-over-year increase.
• The company announced a quarterly dividend increase to $0.82 per share, marking a rise from $0.71 and giving a 0.4% yield with a payout ratio of 13.08%.

Shell Asset Management Co. boosted its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 19.4% in the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 7,857 shares of the company's stock after acquiring an additional 1,278 shares during the quarter. Shell Asset Management Co.'s holdings in McKesson were worth $5,757,000 at the end of the most recent quarter.

Several other institutional investors also recently bought and sold shares of the company. Bank of Jackson Hole Trust raised its stake in McKesson by 64.3% in the first quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock valued at $29,000 after buying an additional 18 shares in the last quarter. CBIZ Investment Advisory Services LLC lifted its position in McKesson by 1,366.7% in the first quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after purchasing an additional 41 shares during the period. Saudi Central Bank purchased a new stake in shares of McKesson in the first quarter valued at approximately $34,000. Flaharty Asset Management LLC acquired a new position in shares of McKesson during the 1st quarter worth $39,000. Finally, Pandora Wealth Inc. acquired a new position in McKesson during the first quarter worth $40,000. 85.07% of the stock is owned by institutional investors and hedge funds.

McKesson Price Performance

Shares of NYSE MCK opened at $740.82 on Tuesday. The business's 50-day moving average price is $703.30 and its two-hundred day moving average price is $704.05. McKesson Corporation has a one year low of $482.44 and a one year high of $776.14. The company has a market capitalization of $92.15 billion, a P/E ratio of 29.54, a price-to-earnings-growth ratio of 1.32 and a beta of 0.52.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings data on Wednesday, August 6th. The company reported $8.26 earnings per share for the quarter, missing analysts' consensus estimates 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 net margin of 0.84% and a negative return on equity of 196.66%. The firm's revenue was up 23.4% on a year-over-year basis. During the same period in the previous year, the business posted $7.88 earnings per share. On average, equities analysts anticipate that McKesson Corporation will post 32.77 EPS for the current year.

McKesson Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd were issued a dividend of $0.82 per share. The ex-dividend date of this dividend was Tuesday, September 2nd. This represents a $3.28 dividend on an annualized basis and a yield of 0.4%. This is an increase from McKesson's previous quarterly dividend of $0.71. McKesson's payout ratio is currently 13.08%.

Analysts Set New Price Targets

A number of analysts recently commented on MCK shares. Wall Street Zen raised McKesson from a "hold" rating to a "buy" rating in a research note on Sunday, September 28th. Morgan Stanley lifted their price target on shares of McKesson from $810.00 to $857.00 and gave the company an "overweight" rating in a research report on Wednesday, September 24th. Evercore ISI increased their target price on McKesson from $800.00 to $825.00 and gave the company an "outperform" rating in a research note on Wednesday, September 24th. JPMorgan Chase & Co. boosted their price objective on shares of McKesson from $821.00 to $853.00 and gave the stock an "overweight" rating in a report on Friday, September 26th. Finally, Mizuho raised their price objective on shares of McKesson from $750.00 to $770.00 and gave the stock a "neutral" rating in a report on Wednesday, September 24th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and three have given a Hold rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus target price of $829.08.

Insider Buying and Selling

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the business's stock in a transaction dated Friday, August 8th. The stock was sold at an average price of $663.67, for a total transaction of $218,347.43. Following the completion of the sale, the chief accounting officer directly owned 657 shares of the company's stock, valued at approximately $436,031.19. The trade was a 33.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Brian S. Tyler sold 11,930 shares of the business's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $705.63, for a total value of $8,418,165.90. Following the transaction, the chief executive officer owned 4,012 shares of the company's stock, valued at $2,830,987.56. The trade was a 74.83% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 43,560 shares of company stock valued at $30,438,602. 0.08% of the stock is currently owned by company insiders.

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.

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