Zurich Insurance Group Ltd FI Buys New Stake in McKesson Corporation $MCK

Key Points

• Zurich Insurance Group Ltd FI acquired 85,101 shares of McKesson Corporation valued at approximately $57.27 million, increasing its stake to about 0.07% as of its latest SEC filing.
• Analysts have issued several upgrades for McKesson, with Evercore ISI raising the target price to $800.00 and maintaining an "outperform" rating.
• McKesson announced a quarterly dividend increase from $0.71 to $0.82 per share, which reflects an annualized payout of $3.28 and a yield of 0.5%.

Zurich Insurance Group Ltd FI purchased a new position in shares of McKesson Corporation (NYSE:MCK - Free Report) in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 85,101 shares of the company's stock, valued at approximately $57,272,000. Zurich Insurance Group Ltd FI owned about 0.07% of McKesson at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in MCK. Capital A Wealth Management LLC acquired a new stake in shares of McKesson during the fourth quarter worth about $26,000. Bank of Jackson Hole Trust increased its position in shares of McKesson by 64.3% during the first quarter. Bank of Jackson Hole Trust now owns 46 shares of the company's stock worth $29,000 after purchasing an additional 18 shares in the last quarter. CBIZ Investment Advisory Services LLC increased its position in shares of McKesson by 1,366.7% during the first quarter. CBIZ Investment Advisory Services LLC now owns 44 shares of the company's stock worth $30,000 after purchasing an additional 41 shares in the last quarter. Saudi Central Bank acquired a new stake in shares of McKesson during the first quarter worth about $34,000. Finally, Pandora Wealth Inc. acquired a new stake in shares of McKesson during the first quarter worth about $40,000. Institutional investors and hedge funds own 85.07% of the company's stock.

Analysts Set New Price Targets

A number of analysts have recently commented on the company. Wells Fargo & Company lifted their target price on McKesson from $766.00 to $772.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 13th. Wall Street Zen cut McKesson from a "strong-buy" rating to a "buy" rating in a research report on Sunday, July 13th. Cowen restated a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. Evercore ISI boosted their price target on McKesson from $760.00 to $800.00 and gave the company an "outperform" rating in a research report on Wednesday, July 9th. Finally, Morgan Stanley restated an "overweight" rating and issued a $810.00 price target (up previously from $770.00) on shares of McKesson in a research report on Wednesday, July 16th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $725.10.

McKesson Price Performance

NYSE MCK traded down $8.48 on Friday, hitting $711.32. 522,385 shares of the company's stock were exchanged, compared to its average volume of 704,488. The firm's 50-day moving average price is $697.81 and its two-hundred day moving average price is $693.98. McKesson Corporation has a fifty-two week low of $464.42 and a fifty-two week high of $737.89. The firm has a market cap of $88.48 billion, a price-to-earnings ratio of 28.36, a P/E/G ratio of 1.43 and a beta of 0.51.

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

McKesson Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd will be paid a dividend of $0.82 per share. 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. This represents a $3.28 annualized dividend and a dividend yield of 0.5%. McKesson's dividend payout ratio is presently 13.08%.

Insider Activity at McKesson

In other news, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the business's stock in a transaction that occurred 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 sale, the chief accounting officer owned 657 shares of the company's stock, valued at $436,031.19. The trade was a 33.37% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Brian S. Tyler sold 11,930 shares of the business'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 sale, the chief executive officer directly owned 4,012 shares in the company, valued at $2,830,987.56. This trade represents a 74.83% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 43,560 shares of company stock worth $30,438,602 in the last three months. Corporate 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.