WCM Investment Management LLC Lowers Position in McKesson Corporation $MCK

Key Points

• WCM Investment Management LLC has reduced its stake in McKesson Corporation by 9.6%, now holding approximately 978,333 shares valued at $710 million, making it the company's 23rd largest position.
• Multiple analysts have upgraded McKesson's stock rating to "buy", with target prices ranging from $850 to $900, reflecting increased confidence in the company's performance.
• The CEO of McKesson, Brian S. Tyler, sold nearly 12,000 shares of company stock recently, reducing his ownership by 74.83%, amid other insider sales totaling around $16.7 million over the past three months.

WCM Investment Management LLC cut its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 9.6% during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 978,333 shares of the company's stock after selling 104,307 shares during the period. McKesson comprises about 1.6% of WCM Investment Management LLC's investment portfolio, making the stock its 23rd biggest position. WCM Investment Management LLC owned approximately 0.78% of McKesson worth $710,055,000 as of its most recent filing with the SEC.

Other large investors have also made changes to their positions in the company. Bank of Jackson Hole Trust lifted its position in shares of McKesson by 64.3% in the first 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. CBIZ Investment Advisory Services LLC lifted its position in shares of McKesson by 1,366.7% in the first 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. GFG Capital LLC purchased a new position in shares of McKesson in the second quarter valued at about $30,000. Saudi Central Bank purchased a new position in shares of McKesson in the first quarter valued at about $34,000. Finally, Flaharty Asset Management LLC purchased a new position in shares of McKesson in the first quarter valued at about $39,000. 85.07% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

MCK has been the topic of several research analyst reports. Bank of America boosted their price objective on McKesson from $800.00 to $850.00 and gave the company a "buy" rating in a research report on Wednesday, September 24th. Deutsche Bank Aktiengesellschaft boosted their price objective on McKesson from $775.00 to $856.00 and gave the company a "buy" rating in a research report on Wednesday, September 24th. Citigroup boosted their price objective on McKesson from $820.00 to $860.00 and gave the company a "buy" rating in a research report on Wednesday, September 24th. Jefferies Financial Group boosted their target price on McKesson from $820.00 to $900.00 and gave the stock a "buy" rating in a research report on Monday. Finally, Wall Street Zen upgraded McKesson from a "hold" rating to a "buy" rating in a report on Sunday, September 28th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, McKesson currently has an average rating of "Moderate Buy" and a consensus target price of $834.54.

Insider Activity at McKesson

In other news, 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 value of $8,418,165.90. Following the completion of the sale, the chief executive officer directly owned 4,012 shares of the company's stock, valued at $2,830,987.56. This trade represents a 74.83% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, 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 completion of the sale, the chief accounting officer directly owned 657 shares of the company's stock, valued at $436,031.19. The trade was a 33.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 24,189 shares of company stock valued at $16,722,190 over the last ninety days. Corporate insiders own 0.08% of the company's stock.

McKesson Price Performance

NYSE MCK opened at $791.40 on Thursday. The stock has a market capitalization of $98.43 billion, a PE ratio of 31.55, a P/E/G ratio of 1.41 and a beta of 0.52. The business has a 50 day simple moving average of $711.83 and a two-hundred day simple moving average of $708.47. McKesson Corporation has a 1-year low of $492.39 and a 1-year high of $792.34.

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

McKesson Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd were paid a $0.82 dividend. This represents a $3.28 annualized dividend and a dividend yield of 0.4%. The ex-dividend date of this dividend was Tuesday, September 2nd. This is a positive change from McKesson's previous quarterly dividend of $0.71. 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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