McKesson Corporation $MCK Stake Lessened by Voleon Capital Management LP

Key Points

• Voleon Capital Management LP reduced its stake in McKesson Corporation by 9.7%, owning 6,499 shares valued at $4,374,000 following the sale of 701 shares.
• McKesson announced a quarterly dividend of $0.82 per share, which is an increase from the previous $0.71, and will be paid to investors of record on September 2nd.
• Wall Street analysts currently have a consensus rating of "Moderate Buy" on McKesson, with a price target of $725.10, indicating optimism about the company's future performance.

Voleon Capital Management LP trimmed its position in McKesson Corporation (NYSE:MCK - Free Report) by 9.7% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 6,499 shares of the company's stock after selling 701 shares during the period. Voleon Capital Management LP's holdings in McKesson were worth $4,374,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Fred Alger Management LLC lifted its holdings in McKesson by 1,131.7% in the 1st quarter. Fred Alger Management LLC now owns 38,072 shares of the company's stock valued at $25,631,000 after purchasing an additional 34,981 shares in the last quarter. Knightsbridge Asset Management LLC lifted its holdings in shares of McKesson by 1.2% during the 1st quarter. Knightsbridge Asset Management LLC now owns 3,299 shares of the company's stock worth $2,220,000 after acquiring an additional 40 shares during the period. Cape Investment Advisory Inc. lifted its holdings in shares of McKesson by 19.6% during the 1st quarter. Cape Investment Advisory Inc. now owns 122 shares of the company's stock worth $82,000 after acquiring an additional 20 shares during the period. Dynamic Technology Lab Private Ltd purchased a new position in shares of McKesson during the 1st quarter worth about $289,000. Finally, Aberdeen Wealth Management LLC purchased a new position in shares of McKesson during the 1st quarter worth about $236,000. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

McKesson Stock Performance

MCK traded down $8.48 on Friday, reaching $711.32. 522,385 shares of the company's stock were exchanged, compared to its average volume of 704,488. The company's 50 day moving average is $697.81 and its 200-day moving average is $694.47. The company has a market cap of $88.48 billion, a price-to-earnings ratio of 28.36, a PEG ratio of 1.43 and a beta of 0.51. McKesson Corporation has a twelve month low of $464.42 and a twelve month high of $737.89.

McKesson (NYSE:MCK - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported $8.26 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $8.33 by ($0.07). The business had revenue of $97.83 billion for the quarter, compared to analyst estimates of $95.93 billion. McKesson had a negative return on equity of 196.66% and a net margin of 0.84%.The firm's revenue for the quarter was up 23.4% compared to the same quarter last year. During the same period last year, the company posted $7.88 EPS. Sell-side analysts forecast that McKesson Corporation will post 32.77 EPS for the current year.

McKesson Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd will be given a $0.82 dividend. This represents a $3.28 annualized dividend and a yield of 0.5%. This is a positive change from McKesson's previous quarterly dividend of $0.71. The ex-dividend date of this dividend is Tuesday, September 2nd. McKesson's dividend payout ratio is 13.08%.

Insider Activity at McKesson

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

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Cowen reiterated a "buy" rating on shares of McKesson in a report on Thursday, August 7th. Wall Street Zen lowered shares of McKesson from a "strong-buy" rating to a "buy" rating in a report on Sunday, July 13th. Wells Fargo & Company increased their price objective 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. Morgan Stanley reiterated an "overweight" rating and set a $810.00 price objective (up from $770.00) on shares of McKesson in a report on Wednesday, July 16th. Finally, Evercore ISI increased their price objective on shares of McKesson from $760.00 to $800.00 and gave the stock an "outperform" rating in a report on Wednesday, July 9th. One equities research 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, the company currently has an average rating of "Moderate Buy" and a consensus target price of $725.10.

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.