Westover Capital Advisors LLC Acquires Shares of 370 McKesson Corporation (NYSE:MCK)

Key Points

• Westover Capital Advisors LLC has acquired a new stake in McKesson Corporation, purchasing 370 shares valued at approximately $249,000 in the 1st quarter.
• McKesson reported a net revenue of $90.82 billion for the last quarter, with earnings per share (EPS) of $10.12, exceeding analyst estimates.
• The company announced a quarterly dividend of $0.71 per share, which equates to an annualized dividend yield of 0.40%.

Westover Capital Advisors LLC bought a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) in the 1st quarter, according to its most recent 13F filing with the SEC. The fund bought 370 shares of the company's stock, valued at approximately $249,000.

A number of other institutional investors and hedge funds also recently modified their holdings of MCK. Assetmark Inc. grew its stake in McKesson by 20.8% in the first quarter. Assetmark Inc. now owns 13,829 shares of the company's stock valued at $9,307,000 after acquiring an additional 2,379 shares during the period. Cetera Investment Advisers boosted its holdings in shares of McKesson by 11.4% in the first quarter. Cetera Investment Advisers now owns 37,515 shares of the company's stock valued at $25,247,000 after buying an additional 3,847 shares during the period. Avantax Advisory Services Inc. raised its holdings in shares of McKesson by 19.1% during the first quarter. Avantax Advisory Services Inc. now owns 4,236 shares of the company's stock worth $2,851,000 after acquiring an additional 679 shares during the period. Hamilton Point Investment Advisors LLC bought a new stake in McKesson in the 1st quarter valued at $203,000. Finally, Brookwood Investment Group LLC acquired a new position in McKesson in the 1st quarter worth $491,000. 85.07% of the stock is owned by institutional investors.

Insider Activity

In other McKesson news, CEO Brian S. Tyler sold 19,371 shares of McKesson stock in a transaction dated Friday, July 11th. The shares were sold at an average price of $708.09, for a total value of $13,716,411.39. Following the sale, the chief executive officer owned 27,872 shares of the company's stock, valued at approximately $19,735,884.48. The trade was a 41.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Leann B. Smith sold 341 shares of McKesson 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 completion of the sale, the executive vice president directly owned 2,800 shares in the company, valued at $2,010,148. This trade represents a 10.86% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 52,488 shares of company stock worth $37,242,862. 0.08% of the stock is owned by insiders.

McKesson Trading Down 0.1%

NYSE MCK traded down $0.53 during trading hours on Wednesday, hitting $711.62. The company's stock had a trading volume of 213,545 shares, compared to its average volume of 872,102. The company's 50-day simple moving average is $717.32 and its two-hundred day simple moving average is $673.84. McKesson Corporation has a 52 week low of $464.42 and a 52 week high of $737.89. The company has a market capitalization of $89.03 billion, a PE ratio of 27.57, a price-to-earnings-growth ratio of 1.43 and a beta of 0.48.

McKesson (NYSE:MCK - Get Free Report) last announced its earnings results on Thursday, May 8th. The company reported $10.12 EPS for the quarter, beating the consensus estimate of $9.83 by $0.29. McKesson had a net margin of 0.92% and a negative return on equity of 201.12%. The company had revenue of $90.82 billion during the quarter, compared to the consensus estimate of $94 billion. During the same quarter in the prior year, the company posted $6.18 earnings per share. The firm's revenue for the quarter was up 18.9% on a year-over-year basis. Research analysts anticipate that McKesson Corporation will post 32.77 EPS for the current fiscal year.

McKesson Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Tuesday, September 2nd will be paid a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a yield of 0.46%. This is an increase from McKesson's previous quarterly dividend of $0.71. McKesson's dividend payout ratio is 10.99%.

Analysts Set New Price Targets

A number of research firms have recently issued reports on MCK. Bank of America lifted their price objective on shares of McKesson from $755.00 to $800.00 and gave the company a "buy" rating in a report on Friday, May 9th. Wells Fargo & Company set a $766.00 price objective on shares of McKesson and gave the stock an "equal weight" rating in a research note on Tuesday, June 3rd. UBS Group upped their price objective on shares of McKesson from $708.00 to $805.00 and gave the company a "buy" rating in a report on Tuesday, April 29th. Mizuho boosted their price target on McKesson from $630.00 to $690.00 and gave the company a "neutral" rating in a research note on Thursday, April 3rd. Finally, Morgan Stanley restated an "overweight" rating and issued a $810.00 target price (up from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. Three equities research analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $710.17.

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.