Sumitomo Mitsui DS Asset Management Company Ltd Boosts Stock Position in McKesson Corporation $MCK

Key Points

• Sumitomo Mitsui DS Asset Management Company Ltd increased its holdings in McKesson Corporation by 4.6%, acquiring an additional 762 shares during the second quarter, bringing its total to 17,292 shares valued at approximately $12.67 million.
• Several institutional investors have made significant changes to their positions in McKesson, with 85.07% of the stock now owned by these investors, reflecting strong interest in the company.
• McKesson recently announced a quarterly dividend increase from $0.71 to $0.82, representing a 0.5% yield, set to be paid on October 1st to investors of record by September 2nd.

Sumitomo Mitsui DS Asset Management Company Ltd grew its holdings in McKesson Corporation (NYSE:MCK - Free Report) by 4.6% during the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 17,292 shares of the company's stock after purchasing an additional 762 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd's holdings in McKesson were worth $12,671,000 at the end of the most recent quarter.

Other institutional investors have also added to or reduced their stakes in the company. Capital A Wealth Management LLC bought a new position in McKesson during the fourth quarter worth about $26,000. Bank of Jackson Hole Trust boosted its position in McKesson by 64.3% during the 1st quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock worth $29,000 after buying an additional 18 shares during the period. CBIZ Investment Advisory Services LLC boosted its position in McKesson by 1,366.7% during the 1st quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock worth $30,000 after buying an additional 41 shares during the period. Saudi Central Bank acquired a new position in shares of McKesson in the 1st quarter worth approximately $34,000. Finally, Flaharty Asset Management LLC acquired a new position in shares of McKesson during the 1st quarter valued at $39,000. 85.07% of the stock is currently owned by institutional investors and hedge funds.

McKesson Price Performance

Shares of NYSE:MCK traded up $7.94 during mid-day trading on Friday, reaching $698.07. 1,445,591 shares of the company traded hands, compared to its average volume of 666,644. McKesson Corporation has a 52 week low of $464.42 and a 52 week high of $737.89. The firm has a market cap of $86.83 billion, a PE ratio of 27.83, a PEG ratio of 1.37 and a beta of 0.51. The company's 50 day moving average price is $695.15 and its 200-day moving average price is $696.05.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly earnings results 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 business 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 company's revenue for the quarter was up 23.4% compared to the same quarter last year. During the same quarter in the previous year, the company earned $7.88 earnings per share. On average, research analysts predict that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be given a $0.82 dividend. This is a boost 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%. The ex-dividend date is Tuesday, September 2nd. McKesson's dividend payout ratio is 13.08%.

Wall Street Analyst Weigh In

A number of brokerages have commented on MCK. Wall Street Zen lowered McKesson from a "buy" rating to a "hold" rating in a report on Saturday. Morgan Stanley reiterated an "overweight" rating and set a $810.00 target price (up previously from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. Evercore ISI increased their target price on shares of McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 9th. Cowen reissued a "buy" rating on shares of McKesson in a report on Thursday, August 7th. Finally, Wells Fargo & Company increased their price target on shares of McKesson from $766.00 to $772.00 and gave the stock an "equal weight" rating in a report on Wednesday, August 13th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $725.10.

Insiders Place Their Bets

In other news, CEO Brian S. Tyler sold 11,930 shares of McKesson stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the completion of the sale, the chief executive officer directly owned 4,012 shares in the company, valued at approximately $2,830,987.56. This trade represents a 74.83% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of McKesson stock in a transaction dated Friday, August 8th. The shares were sold at an average price of $663.67, for a total value of $218,347.43. Following the completion of the sale, the chief accounting officer owned 657 shares of the company's stock, valued at $436,031.19. The trade was a 33.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 43,560 shares of company stock valued at $30,438,602. 0.08% of the stock is 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.