McKesson Corporation $MCK Stock Holdings Lessened by Zuckerman Investment Group LLC

Key Points

• Zuckerman Investment Group LLC reduced its holdings in McKesson Corporation by 4.7%, owning approximately $39.50 million worth of shares, making it the firm's 4th largest investment.
• Recent insider trading includes a significant sale by EVP Thomas L. Rodgers, who sold over 2,800 shares, thereby decreasing his position by 53.19%.
• McKesson has increased its quarterly dividend from $0.71 to $0.82 per share, reflecting a commitment to returning value to shareholders.

Zuckerman Investment Group LLC lowered its stake in shares of McKesson Corporation (NYSE:MCK - Free Report) by 4.7% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 58,691 shares of the company's stock after selling 2,876 shares during the period. McKesson accounts for 4.2% of Zuckerman Investment Group LLC's investment portfolio, making the stock its 4th biggest holding. Zuckerman Investment Group LLC's holdings in McKesson were worth $39,499,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors also recently modified their holdings of the stock. Oppenheimer Asset Management Inc. increased its position in McKesson by 54.0% in the first quarter. Oppenheimer Asset Management Inc. now owns 4,541 shares of the company's stock worth $3,056,000 after buying an additional 1,592 shares during the last quarter. Dynamic Advisor Solutions LLC increased its position in McKesson by 16.6% in the first quarter. Dynamic Advisor Solutions LLC now owns 778 shares of the company's stock worth $524,000 after buying an additional 111 shares during the last quarter. Cambridge Investment Research Advisors Inc. increased its position in McKesson by 18.9% in the first quarter. Cambridge Investment Research Advisors Inc. now owns 23,033 shares of the company's stock worth $15,501,000 after buying an additional 3,659 shares during the last quarter. Wealth Enhancement Advisory Services LLC increased its position in McKesson by 4.3% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 183,258 shares of the company's stock worth $123,332,000 after buying an additional 7,556 shares during the last quarter. Finally, LPL Financial LLC increased its position in McKesson by 12.8% in the first quarter. LPL Financial LLC now owns 155,946 shares of the company's stock worth $104,950,000 after buying an additional 17,750 shares during the last quarter. Hedge funds and other institutional investors own 85.07% of the company's stock.

Wall Street Analyst Weigh In

A number of research firms have issued reports on MCK. Morgan Stanley reissued 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. 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 research note on Friday, May 9th. Wall Street Zen downgraded McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Wells Fargo & Company lifted their price target on McKesson from $766.00 to $772.00 and gave the company an "equal weight" rating in a research report on Wednesday, August 13th. Finally, Cowen reiterated a "buy" rating on shares of McKesson in a research note on Thursday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $725.10.

Insider Transactions at McKesson

In related news, CEO Brian S. Tyler sold 19,371 shares of the firm'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 directly 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 sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the business's stock in a transaction 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 completion of the sale, the chief accounting officer directly owned 657 shares of the company's stock, valued at $436,031.19. This represents a 33.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 62,930 shares of company stock worth $44,112,466. 0.08% of the stock is currently owned by insiders.

McKesson Stock Up 0.8%

Shares of MCK stock traded up $5.42 during trading on Friday, hitting $686.44. The company had a trading volume of 880,317 shares, compared to its average volume of 984,242. The stock's 50-day moving average is $703.12 and its two-hundred day moving average is $686.81. The stock has a market capitalization of $85.38 billion, a price-to-earnings ratio of 27.37, a price-to-earnings-growth ratio of 1.35 and a beta of 0.50. McKesson Corporation has a 52 week low of $464.42 and a 52 week high of $737.89.

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

McKesson Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders 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 dividend payout ratio is currently 11.32%.

McKesson Company 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.