Swedbank AB Cuts Stock Holdings in McKesson Corporation $MCK

Key Points

• Swedbank AB reduced its stake in McKesson Corporation by 1.7%, owning approximately 639,408 shares valued at $430.3 million after selling 11,262 shares.
• Analysts have varying predictions for McKesson, with price targets ranging from $725.10 to $810.00, showing a consensus rating of "Moderate Buy."
• McKesson announced a quarterly dividend increase from $0.71 to $0.82, reflecting a yield of 0.5% and a payout ratio of 13.08%.

Swedbank AB trimmed its holdings in shares of McKesson Corporation (NYSE:MCK - Free Report) by 1.7% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 639,408 shares of the company's stock after selling 11,262 shares during the period. Swedbank AB owned about 0.51% of McKesson worth $430,315,000 at the end of the most recent reporting period.

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

Analyst Ratings Changes

MCK has been the topic of several research reports. Evercore ISI lifted their price objective on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. Wells Fargo & Company lifted their price objective on McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 13th. Morgan Stanley reaffirmed an "overweight" rating and set a $810.00 price objective (up from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. Wall Street Zen cut McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Finally, Cowen reaffirmed a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. 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 company's stock. Based on data from MarketBeat, McKesson currently has a consensus rating of "Moderate Buy" and an average price target of $725.10.

Insider Activity at McKesson

In related news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the firm's stock in a transaction that occurred 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 sale, the chief accounting officer owned 657 shares in the company, valued at approximately $436,031.19. This trade represents a 33.37% decrease in their ownership of the stock. 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 firm's stock in a transaction that occurred 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 owned 4,012 shares in the company, valued at $2,830,987.56. This represents a 74.83% decrease in their position. The disclosure for this sale can be found here. Insiders sold 43,560 shares of company stock worth $30,438,602 in the last 90 days. 0.08% of the stock is currently owned by corporate insiders.

McKesson Stock Up 1.8%

NYSE:MCK opened at $718.72 on Friday. The company's 50 day moving average price is $697.97 and its 200-day moving average price is $693.40. 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 $89.39 billion, a price-to-earnings ratio of 28.66, a PEG ratio of 1.40 and a beta of 0.51.

McKesson (NYSE:MCK - Get Free Report) last posted its quarterly 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). McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The firm had revenue of $97.83 billion for the quarter, compared to analysts' expectations of $95.93 billion. During the same quarter in the previous year, the company earned $7.88 EPS. The company's quarterly revenue was up 23.4% compared to the same quarter last year. 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 business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be issued a $0.82 dividend. This is an increase from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 annualized dividend and a yield of 0.5%. The ex-dividend date is Tuesday, September 2nd. McKesson's dividend payout ratio is 13.08%.

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.

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