Convergence Investment Partners LLC increased its stake in McKesson Co. (NYSE:MCK) by 9.1% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 8,684 shares of the company’s stock after acquiring an additional 725 shares during the period. Convergence Investment Partners LLC’s holdings in McKesson were worth $1,332,000 as of its most recent SEC filing.
Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Washington Trust Bank bought a new stake in shares of McKesson in the 2nd quarter valued at about $221,000. Regent Investment Management LLC raised its position in McKesson by 35.1% during the 2nd quarter. Regent Investment Management LLC now owns 11,360 shares of the company’s stock valued at $1,743,000 after purchasing an additional 2,950 shares during the last quarter. Silicon Hills Wealth Management LLC purchased a new position in shares of McKesson during the 2nd quarter worth approximately $757,000. Pacer Advisors Inc. grew its holdings in shares of McKesson by 52.7% during the 2nd quarter. Pacer Advisors Inc. now owns 43,857 shares of the company’s stock worth $6,729,000 after acquiring an additional 15,131 shares during the period. Finally, Point View Wealth Management Inc. grew its holdings in shares of McKesson by 1.3% during the 2nd quarter. Point View Wealth Management Inc. now owns 8,276 shares of the company’s stock worth $1,270,000 after acquiring an additional 106 shares during the period. 79.19% of the stock is owned by institutional investors.
A number of research firms have weighed in on MCK. Cowen upped their target price on McKesson from $174.00 to $186.00 and gave the stock an “outperform” rating in a report on Thursday, May 21st. Cfra cut their price target on McKesson from $179.00 to $171.00 and set a “buy” rating on the stock in a research note on Wednesday, May 20th. Deutsche Bank cut their target price on McKesson from $173.00 to $169.00 and set a “hold” rating on the stock in a research note on Thursday, May 21st. Wolfe Research upgraded McKesson from a “peer perform” rating to an “outperform” rating and set a $184.00 target price on the stock in a research note on Friday, May 22nd. Finally, Guggenheim increased their target price on McKesson from $168.00 to $175.00 and gave the company a “buy” rating in a research note on Wednesday, July 8th. Two research analysts have rated the stock with a sell rating, five have given a hold rating and nine have issued a buy rating to the stock. The company presently has an average rating of “Hold” and a consensus target price of $172.79.
McKesson (NYSE:MCK) last issued its quarterly earnings data on Wednesday, May 20th. The company reported $4.27 EPS for the quarter, topping analysts’ consensus estimates of $4.10 by $0.17. McKesson had a net margin of 0.39% and a return on equity of 41.07%. The company had revenue of $58.54 billion during the quarter, compared to the consensus estimate of $55.60 billion. During the same quarter in the previous year, the firm posted $3.69 earnings per share. McKesson’s revenue for the quarter was up 11.6% compared to the same quarter last year. As a group, research analysts anticipate that McKesson Co. will post 14.36 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be given a dividend of $0.42 per share. The ex-dividend date of this dividend is Monday, August 31st. This is an increase from McKesson’s previous quarterly dividend of $0.41. This represents a $1.68 dividend on an annualized basis and a yield of 1.12%. McKesson’s payout ratio is currently 10.97%.
In other McKesson news, EVP Lori A. Schechter sold 5,488 shares of the stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $160.00, for a total transaction of $878,080.00. Following the sale, the executive vice president now directly owns 11,397 shares in the company, valued at approximately $1,823,520. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CFO Britt J. Vitalone sold 1,034 shares of the firm’s stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $149.60, for a total transaction of $154,686.40. Following the completion of the sale, the chief financial officer now owns 1,048 shares in the company, valued at $156,780.80. The disclosure for this sale can be found here. In the last quarter, insiders sold 9,000 shares of company stock valued at $1,394,429. Insiders own 0.28% of the company’s stock.
McKesson Corporation provides pharmaceuticals and medical supplies in the United States and internationally. It operates in three segments: U.S. Pharmaceutical and Specialty Solutions, European Pharmaceutical Solutions, and Medical-Surgical Solutions. The company distributes branded, generic, specialty, biosimilar, and over-the-counter pharmaceutical drugs, as well as other healthcare-related products; and offers practice management, technology, clinical support, and business solutions to community-based oncology and other specialty practices.
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