Townsend & Associates Inc Makes New $14.19 Million Investment in McKesson Corporation $MCK

Key Points

• Townsend & Associates Inc has invested $14.19 million in McKesson Corporation by purchasing 19,927 shares, making it the firm's 29th largest position.
• McKesson's stock price increased by 1.7%, with shares opening at $788.27 and a market capitalization of $98.05 billion.
• The company announced a new quarterly dividend of $0.82 per share, up from the previous $0.71, reflecting a commitment to returning value to shareholders.

Townsend & Associates Inc purchased a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 19,927 shares of the company's stock, valued at approximately $14,185,000. McKesson comprises 1.4% of Townsend & Associates Inc's holdings, making the stock its 29th largest position.

A number of other institutional investors also recently bought and sold shares of the business. Calamos Wealth Management LLC lifted its holdings in McKesson by 0.4% during the 2nd quarter. Calamos Wealth Management LLC now owns 5,356 shares of the company's stock worth $3,925,000 after buying an additional 21 shares during the last quarter. Crux Wealth Advisors lifted its holdings in McKesson by 43.3% during the 2nd quarter. Crux Wealth Advisors now owns 1,307 shares of the company's stock worth $958,000 after buying an additional 395 shares during the last quarter. Chicago Partners Investment Group LLC lifted its holdings in McKesson by 16.3% during the 2nd quarter. Chicago Partners Investment Group LLC now owns 1,069 shares of the company's stock worth $763,000 after buying an additional 150 shares during the last quarter. Signature Estate & Investment Advisors LLC increased its position in shares of McKesson by 6.8% during the second quarter. Signature Estate & Investment Advisors LLC now owns 58,471 shares of the company's stock worth $42,846,000 after purchasing an additional 3,735 shares in the last quarter. Finally, Quotient Wealth Partners LLC increased its position in shares of McKesson by 16.1% during the second quarter. Quotient Wealth Partners LLC now owns 468 shares of the company's stock worth $343,000 after purchasing an additional 65 shares in the last quarter. 85.07% of the stock is owned by hedge funds and other institutional investors.

McKesson Stock Up 1.7%

Shares of MCK stock opened at $788.27 on Monday. The stock has a market capitalization of $98.05 billion, a PE ratio of 31.43, a price-to-earnings-growth ratio of 1.42 and a beta of 0.52. McKesson Corporation has a 52-week low of $492.39 and a 52-week high of $793.97. The stock's 50-day moving average price is $716.48 and its 200 day moving average price is $710.02.

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). The company had revenue of $97.83 billion during the quarter, compared to analyst estimates of $95.93 billion. McKesson had a net margin of 0.84% and a negative return on equity of 196.66%. The business's revenue was up 23.4% on a year-over-year basis. During the same quarter last year, the firm earned $7.88 EPS. Analysts expect that McKesson Corporation will post 32.77 earnings per share for the current fiscal year.

McKesson Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd were given a dividend of $0.82 per share. This represents a $3.28 annualized dividend and a yield of 0.4%. The ex-dividend date was Tuesday, September 2nd. This is a positive change from McKesson's previous quarterly dividend of $0.71. McKesson's payout ratio is presently 13.08%.

Insider Activity at McKesson

In other McKesson news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the business's stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $663.67, for a total transaction of $218,347.43. Following the transaction, the chief accounting officer owned 657 shares in the company, valued at approximately $436,031.19. The trade was a 33.37% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Brian S. Tyler sold 11,930 shares of the business'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 value of $8,418,165.90. Following the transaction, the chief executive officer owned 4,012 shares in the company, valued at $2,830,987.56. The trade was a 74.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 24,189 shares of company stock worth $16,722,190 in the last quarter. 0.08% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

A number of research firms have recently commented on MCK. Citigroup lifted their target price on McKesson from $820.00 to $860.00 and gave the stock a "buy" rating in a research report on Wednesday, September 24th. Deutsche Bank Aktiengesellschaft lifted their target price on McKesson from $775.00 to $856.00 and gave the stock a "buy" rating in a research report on Wednesday, September 24th. Wall Street Zen upgraded McKesson from a "hold" rating to a "buy" rating in a research report on Sunday, September 28th. Weiss Ratings reiterated a "buy (b)" rating on shares of McKesson in a research report on Wednesday, October 8th. Finally, Morgan Stanley lifted their target price on McKesson from $810.00 to $857.00 and gave the stock an "overweight" rating in a research report on Wednesday, September 24th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, McKesson has a consensus rating of "Moderate Buy" and an average target price of $834.54.

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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