Wills Financial Group LLC Takes Position in McKesson Corporation (NYSE:MCK)

Key Points

• Wills Financial Group LLC has acquired a new stake in McKesson Corporation, purchasing 500 shares worth approximately $336,000.
• McKesson recently declared a quarterly dividend increase to $0.82 per share, up from $0.71, with an annualized yield of 0.5%.
• Wall Street analysts are optimistic about McKesson, with price targets set as high as $805.00, reflecting a consensus rating of "Moderate Buy."

Wills Financial Group LLC purchased a new stake in McKesson Corporation (NYSE:MCK - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 500 shares of the company's stock, valued at approximately $336,000.

Several other hedge funds also recently added to or reduced their stakes in MCK. Brighton Jones LLC boosted its holdings in McKesson by 46.3% in the fourth quarter. Brighton Jones LLC now owns 2,523 shares of the company's stock valued at $1,438,000 after purchasing an additional 798 shares during the last quarter. Wellington Management Group LLP boosted its holdings in McKesson by 18.2% in the fourth quarter. Wellington Management Group LLP now owns 9,179 shares of the company's stock valued at $5,231,000 after purchasing an additional 1,413 shares during the last quarter. Smith Moore & CO. purchased a new stake in McKesson in the fourth quarter valued at $209,000. Resona Asset Management Co. Ltd. purchased a new stake in McKesson in the fourth quarter valued at $29,898,000. Finally, Peapack Gladstone Financial Corp boosted its holdings in McKesson by 9.8% in the fourth quarter. Peapack Gladstone Financial Corp now owns 8,903 shares of the company's stock valued at $5,074,000 after purchasing an additional 792 shares during the last quarter. 85.07% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Evercore ISI upped their price target on shares of McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a report on Wednesday, July 9th. Wells Fargo & Company set a $766.00 price target on shares of McKesson and gave the company an "equal weight" rating in a report on Tuesday, June 3rd. UBS Group upped their price target on shares of McKesson from $708.00 to $805.00 and gave the company a "buy" rating in a report on Tuesday, April 29th. Wall Street Zen downgraded shares of McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Finally, Bank of America upped their price objective on shares of McKesson from $755.00 to $800.00 and gave the stock a "buy" rating in a research report on Friday, May 9th. Three analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $710.17.

McKesson Stock Up 0.7%

MCK opened at $698.43 on Monday. McKesson Corporation has a twelve month low of $464.42 and a twelve month high of $737.89. The company has a 50-day moving average price of $716.58 and a 200 day moving average price of $676.81. The company has a market cap of $87.38 billion, a PE ratio of 27.04, a price-to-earnings-growth ratio of 1.41 and a beta of 0.50.

McKesson (NYSE:MCK - Get Free Report) last released its quarterly earnings results on Thursday, May 8th. The company reported $10.12 earnings per share for the quarter, topping 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 firm 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 firm earned $6.18 EPS. The company's revenue for the quarter was up 18.9% on a year-over-year basis. As a group, sell-side analysts expect that McKesson Corporation will post 32.77 earnings per share for the current year.

McKesson Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be given a dividend of $0.82 per share. This is a boost from McKesson's previous quarterly dividend of $0.71. The ex-dividend date is Tuesday, September 2nd. This represents a $3.28 annualized dividend and a dividend yield of 0.5%. McKesson's payout ratio is currently 12.70%.

Insider Activity

In related news, EVP Leann B. Smith sold 1,248 shares of the company's stock in a transaction dated Thursday, May 22nd. The shares were sold at an average price of $717.30, for a total transaction of $895,190.40. Following the completion of the transaction, the executive vice president owned 2,621 shares in the company, valued at $1,880,043.30. This represents a 32.26% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Brian S. Tyler sold 19,371 shares of the company's stock in a transaction dated Friday, July 11th. The stock was sold at an average price of $708.09, for a total transaction of $13,716,411.39. Following the transaction, the chief executive officer owned 27,872 shares of the company's stock, valued at approximately $19,735,884.48. This trade represents a 41.00% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 52,488 shares of company stock worth $37,242,862. Company insiders own 0.08% of the company's stock.

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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