Jacobs Levy Equity Management Inc. Trims Stake in McKesson Corporation $MCK

Jacobs Levy Equity Management Inc. lessened its stake in McKesson Corporation (NYSE:MCK) by 14.5% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 521,314 shares of the company’s stock after selling 88,729 shares during the quarter. McKesson comprises about 1.4% of Jacobs Levy Equity Management Inc.’s investment portfolio, making the stock its 8th largest holding. Jacobs Levy Equity Management Inc.’s holdings in McKesson were worth $350,839,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently added to or reduced their stakes in the stock. Oppenheimer Asset Management Inc. increased its stake in shares of McKesson by 54.0% in the 1st quarter. Oppenheimer Asset Management Inc. now owns 4,541 shares of the company’s stock valued at $3,056,000 after acquiring an additional 1,592 shares during the last quarter. Dynamic Advisor Solutions LLC grew its holdings in McKesson by 16.6% during the first quarter. Dynamic Advisor Solutions LLC now owns 778 shares of the company’s stock valued at $524,000 after purchasing an additional 111 shares during the period. Cambridge Investment Research Advisors Inc. grew its holdings in McKesson by 18.9% during the first quarter. Cambridge Investment Research Advisors Inc. now owns 23,033 shares of the company’s stock valued at $15,501,000 after purchasing an additional 3,659 shares during the period. Wealth Enhancement Advisory Services LLC increased its stake in McKesson by 4.3% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 183,258 shares of the company’s stock valued at $123,332,000 after purchasing an additional 7,556 shares in the last quarter. Finally, LPL Financial LLC raised its holdings 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 purchasing an additional 17,750 shares during the period. Institutional investors and hedge funds own 85.07% of the company’s stock.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on MCK shares. Wells Fargo & Company boosted their price target on shares of McKesson from $766.00 to $772.00 and gave the company an “equal weight” rating in a report on Wednesday, August 13th. Cowen restated a “buy” rating on shares of McKesson in a report on Thursday, August 7th. Evercore ISI lifted their price objective on McKesson from $760.00 to $800.00 and gave the company an “outperform” rating in a report on Wednesday, July 9th. Morgan Stanley reissued 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. Finally, Wall Street Zen lowered shares of McKesson from a “strong-buy” rating to a “buy” rating in a research note on Sunday, July 13th. One research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and three have issued a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $725.10.

Insider Activity at McKesson

In other McKesson news, CEO Brian S. Tyler sold 11,930 shares of the firm’s stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $705.63, for a total value of $8,418,165.90. Following the transaction, the chief executive officer directly owned 4,012 shares of the company’s stock, valued at $2,830,987.56. This trade represents a 74.83% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the stock in a transaction dated 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 transaction, the chief accounting officer directly owned 657 shares of the company’s stock, valued at $436,031.19. This trade represents a 33.37% decrease in their position. The disclosure for this sale can be found here. Insiders sold 43,560 shares of company stock worth $30,438,602 in the last 90 days. Corporate insiders own 0.08% of the company’s stock.

McKesson Stock Up 0.0%

Shares of MCK stock opened at $691.03 on Friday. McKesson Corporation has a 12 month low of $464.42 and a 12 month high of $737.89. The company’s fifty day simple moving average is $699.90 and its 200-day simple moving average is $689.91. The firm has a market cap of $85.95 billion, a PE ratio of 27.55, a P/E/G ratio of 1.37 and a beta of 0.51.

McKesson (NYSE:MCK) last issued its quarterly 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 net margin of 0.84% and a negative return on equity of 196.66%. The business had revenue of $97.83 billion during the quarter, compared to analyst estimates of $95.93 billion. During the same quarter in the previous year, the firm posted $7.88 earnings per share. The firm’s quarterly revenue was up 23.4% on a year-over-year basis. On average, equities analysts predict 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. Stockholders of record on Tuesday, September 2nd will be issued a $0.82 dividend. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.5%. The ex-dividend date of this dividend is Tuesday, September 2nd. This is a positive change from McKesson’s previous quarterly dividend of $0.71. McKesson’s payout ratio is currently 13.08%.

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.