McKesson (NYSE:MCK) CEO Sells 11,930 Shares

Key Points

• McKesson's CEO Brian Tyler sold 11,930 shares at an average price of $705.63, totaling over $8.4 million, and reduced his position by 74.83% to 4,012 shares.
• The company's latest earnings report revealed a quarterly EPS of $8.26, falling short of estimates, but a revenue increase of 23.4% year-over-year.
• McKesson announced an increase in its quarterly dividend from $0.71 to $0.82 per share, with the ex-dividend date set for September 2nd.

McKesson Corporation (NYSE:MCK - Get Free Report) CEO Brian S. Tyler sold 11,930 shares of the stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $705.63, for a total transaction of $8,418,165.90. Following the transaction, the chief executive officer owned 4,012 shares of the company's stock, valued at approximately $2,830,987.56. This represents a 74.83% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link.

McKesson Stock Up 0.8%

Shares of NYSE:MCK traded up $5.42 during midday trading on Friday, reaching $686.44. The company had a trading volume of 880,317 shares, compared to its average volume of 984,242. McKesson Corporation has a 1-year low of $464.42 and a 1-year high of $737.89. The stock has a market cap of $85.38 billion, a PE ratio of 27.37, a P/E/G ratio of 1.35 and a beta of 0.50. The business's 50 day moving average price is $702.44 and its 200 day moving average price is $687.34.

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

McKesson Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Investors of record on Tuesday, September 2nd will be issued a dividend of $0.82 per share. The ex-dividend date is Tuesday, September 2nd. This is a positive change from McKesson's previous quarterly dividend of $0.71. This represents a $3.28 dividend on an annualized basis and a yield of 0.5%. McKesson's dividend payout ratio is presently 11.32%.

Analyst Upgrades and Downgrades

A number of analysts have commented on MCK shares. Bank of America increased their price target 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 shares of McKesson from a "strong-buy" rating to a "buy" rating in a research note on Sunday, July 13th. Wells Fargo & Company boosted their price target on McKesson from $766.00 to $772.00 and gave the stock an "equal weight" rating in a research report on Wednesday, August 13th. Cowen reaffirmed a "buy" rating on shares of McKesson in a research report on Thursday, August 7th. Finally, Morgan Stanley reiterated an "overweight" rating and set a $810.00 target price (up from $770.00) on shares of McKesson in a research note on Wednesday, July 16th. One investment 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 company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $725.10.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. MASTERINVEST Kapitalanlage GmbH bought a new stake in shares of McKesson in the second quarter valued at approximately $322,000. B. Riley Wealth Advisors Inc. bought a new position in McKesson during the 2nd quarter worth $1,739,000. Newbridge Financial Services Group Inc. raised its holdings in McKesson by 113.4% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 1,451 shares of the company's stock valued at $1,063,000 after acquiring an additional 771 shares in the last quarter. Advisory Services Network LLC lifted its position in shares of McKesson by 11.9% during the 2nd quarter. Advisory Services Network LLC now owns 15,052 shares of the company's stock valued at $10,439,000 after acquiring an additional 1,597 shares during the period. Finally, State of Wyoming acquired a new stake in shares of McKesson during the 2nd quarter worth $29,000. 85.07% of the stock is owned by institutional investors.

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.