McKesson Corporation $MCK is T. Rowe Price Investment Management Inc.'s 9th Largest Position

Key Points

• T. Rowe Price Investment Management Inc. reduced its stake in McKesson Corporation by 0.6% during Q1, owning 2,831,365 shares after selling 16,020 shares.
• McKesson recently announced an increase in its quarterly dividend from $0.71 to $0.82, with a payout ratio of 11.32% and a dividend yield of 0.5%.
• Analysts have mixed views on McKesson, with several brokerages updating their price targets, the consensus being a moderate buy rating with an average price target of $719.27.

T. Rowe Price Investment Management Inc. cut its position in McKesson Corporation (NYSE:MCK - Free Report) by 0.6% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 2,831,365 shares of the company's stock after selling 16,020 shares during the period. McKesson accounts for approximately 1.3% of T. Rowe Price Investment Management Inc.'s investment portfolio, making the stock its 9th biggest holding. T. Rowe Price Investment Management Inc. owned about 2.26% of McKesson worth $1,905,481,000 at the end of the most recent reporting period.

Other large investors have also added to or reduced their stakes in the company. CBIZ Investment Advisory Services LLC lifted its position in McKesson by 1,366.7% in the 1st quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock valued at $30,000 after acquiring an additional 41 shares in the last quarter. Capital A Wealth Management LLC bought a new position in McKesson in the 4th quarter valued at about $26,000. Bank of Jackson Hole Trust lifted its position in McKesson by 64.3% in the 1st quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock valued at $29,000 after acquiring an additional 18 shares in the last quarter. Pandora Wealth Inc. bought a new position in McKesson in the 1st quarter valued at about $40,000. Finally, Dagco Inc. bought a new position in McKesson in the 1st quarter valued at about $47,000. Institutional investors own 85.07% of the company's stock.

McKesson Stock Performance

NYSE:MCK traded down $18.2950 on Friday, hitting $687.7050. The stock had a trading volume of 1,217,333 shares, compared to its average volume of 950,293. The stock has a market cap of $85.54 billion, a P/E ratio of 27.42, a price-to-earnings-growth ratio of 1.40 and a beta of 0.50. McKesson Corporation has a 1 year low of $464.42 and a 1 year high of $737.89. The firm's fifty day simple moving average is $706.69 and its two-hundred day simple moving average is $684.60.

McKesson (NYSE:MCK - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share (EPS) for the quarter, missing the consensus estimate of $8.33 by ($0.07). McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.The company 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 business earned $7.88 EPS. The company's revenue for the quarter was up 23.4% on a year-over-year basis. Equities research analysts predict that McKesson Corporation will post 32.77 EPS for the current year.

McKesson Increases Dividend

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

Insider Activity at McKesson

In other news, EVP Thomas L. Rodgers sold 2,891 shares of the firm's stock in a transaction that occurred on Friday, May 30th. The shares were sold at an average price of $712.18, for a total transaction of $2,058,912.38. Following the completion of the sale, the executive vice president owned 2,544 shares in the company, valued at $1,811,785.92. This trade represents a 53.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Leann B. Smith sold 341 shares of the firm's stock in a transaction that occurred on Wednesday, May 28th. The stock was sold at an average price of $717.91, for a total transaction of $244,807.31. Following the sale, the executive vice president owned 2,800 shares of the company's stock, valued at approximately $2,010,148. The trade was a 10.86% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 56,620 shares of company stock worth $39,712,388 over the last 90 days. Corporate insiders own 0.08% of the company's stock.

Analyst Ratings Changes

MCK has been the topic of several recent research reports. Wall Street Zen cut shares of McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. UBS Group raised their price target on shares of McKesson from $708.00 to $805.00 and gave the company a "buy" rating in a research report on Tuesday, April 29th. Wells Fargo & Company increased their price objective on shares of McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a research note on Wednesday, August 13th. Morgan Stanley reiterated an "overweight" rating and issued a $810.00 price objective (up previously from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. Finally, Bank of America increased their price objective on shares of McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a research note on Friday, May 9th. One research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, McKesson presently has an average rating of "Moderate Buy" and an average price target of $725.10.

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.