Todd Asset Management LLC Buys 18,428 Shares of McKesson Corporation (NYSE:MCK)

Key Points

• Todd Asset Management LLC increased its stake in McKesson Corporation by 48%, owning 56,849 shares worth approximately $38.26 million after acquiring an additional 18,428 shares.
• McKesson Corporation reported a 23.4% year-over-year revenue growth with quarterly revenue of $97.83 billion, though earnings per share slightly missed estimates.
• The company announced a quarterly dividend of $0.82, an increase from the previous quarterly dividend, reflecting an annualized yield of 0.5%.

Todd Asset Management LLC raised its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 48.0% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 56,849 shares of the company's stock after buying an additional 18,428 shares during the quarter. Todd Asset Management LLC's holdings in McKesson were worth $38,259,000 at the end of the most recent reporting period.

Several other institutional investors also recently modified their holdings of MCK. GAMMA Investing LLC grew its position in shares of McKesson by 75,632.7% during the 1st quarter. GAMMA Investing LLC now owns 2,393,152 shares of the company's stock worth $1,610,567,000 after buying an additional 2,389,992 shares during the period. Nuveen LLC acquired a new position in shares of McKesson during the 1st quarter worth about $475,235,000. Farallon Capital Management LLC acquired a new position in shares of McKesson during the 4th quarter worth about $348,044,000. Marshall Wace LLP grew its position in shares of McKesson by 59,720.3% during the 4th quarter. Marshall Wace LLP now owns 358,922 shares of the company's stock worth $204,553,000 after buying an additional 358,322 shares during the period. Finally, Leigh Baldwin & CO. LLC bought a new position in shares of McKesson during the 4th quarter valued at about $182,861,000. 85.07% of the stock is currently owned by institutional investors and hedge funds.

McKesson Stock Performance

NYSE MCK traded down $13.99 during trading on Tuesday, hitting $658.78. The stock had a trading volume of 1,644,064 shares, compared to its average volume of 798,322. The company has a market capitalization of $81.94 billion, a PE ratio of 26.27, a P/E/G ratio of 1.34 and a beta of 0.50. The company's 50-day moving average price is $712.03 and its two-hundred day moving average price is $680.75. McKesson Corporation has a 12 month low of $464.42 and a 12 month high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last released its earnings results on Wednesday, August 6th. The company reported $8.26 EPS for the quarter, missing the consensus estimate of $8.33 by ($0.07). The firm 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 company's revenue was up 23.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted $7.88 EPS. As a group, equities analysts anticipate that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The business also recently disclosed 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. The ex-dividend date is Tuesday, September 2nd. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.5%. This is an increase from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio (DPR) is currently 11.32%.

Insider Activity at McKesson

In other news, EVP Leann B. Smith sold 341 shares of the company'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 in the company, valued at $2,010,148. This represents a 10.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Britt J. Vitalone sold 1,878 shares of the company'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 value of $1,348,234.98. Following the sale, the chief financial officer owned 14,028 shares in the company, valued at approximately $10,070,841.48. This represents a 11.81% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 52,817 shares of company stock worth $37,461,210. Insiders own 0.08% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently weighed in on MCK shares. Evercore ISI lifted their price objective on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Bank of America lifted their price objective on McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a report on Friday, May 9th. Cowen reiterated a "buy" rating on shares of McKesson in a report on Thursday, August 7th. UBS Group lifted their price objective on McKesson from $708.00 to $805.00 and gave the company a "buy" rating in a report on Tuesday, April 29th. Finally, Morgan Stanley reiterated an "overweight" rating and set a $810.00 price objective (up previously from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Three equities research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $718.73.

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.