Townsend & Associates Inc Invests $14.19 Million in McKesson Corporation $MCK

Townsend & Associates Inc purchased a new position in shares of McKesson Corporation (NYSE:MCK) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 19,927 shares of the company’s stock, valued at approximately $14,185,000. McKesson makes up approximately 1.4% of Townsend & Associates Inc’s portfolio, making the stock its 29th biggest position.

Several other institutional investors have also modified their holdings of the company. Calamos Wealth Management LLC boosted its stake in shares of McKesson by 0.4% during the 2nd quarter. Calamos Wealth Management LLC now owns 5,356 shares of the company’s stock worth $3,925,000 after acquiring an additional 21 shares in the last quarter. Crux Wealth Advisors boosted its stake in shares of McKesson by 43.3% during the 2nd quarter. Crux Wealth Advisors now owns 1,307 shares of the company’s stock worth $958,000 after acquiring an additional 395 shares in the last quarter. Chicago Partners Investment Group LLC lifted its stake in McKesson by 16.3% in the 2nd quarter. Chicago Partners Investment Group LLC now owns 1,069 shares of the company’s stock valued at $763,000 after buying an additional 150 shares in the last quarter. Signature Estate & Investment Advisors LLC lifted its stake in McKesson by 6.8% in the 2nd quarter. Signature Estate & Investment Advisors LLC now owns 58,471 shares of the company’s stock valued at $42,846,000 after buying an additional 3,735 shares in the last quarter. Finally, Quotient Wealth Partners LLC lifted its stake in McKesson by 16.1% in the 2nd quarter. Quotient Wealth Partners LLC now owns 468 shares of the company’s stock valued at $343,000 after buying an additional 65 shares in the last quarter. Hedge funds and other institutional investors own 85.07% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on MCK. Cowen reaffirmed a “buy” rating on shares of McKesson in a research note on Wednesday, September 24th. UBS Group upped their target price on McKesson from $820.00 to $860.00 and gave the company a “buy” rating in a research note on Wednesday, September 24th. Wall Street Zen raised McKesson from a “hold” rating to a “buy” rating in a research note on Sunday, September 28th. Bank of America upped their target price on McKesson from $800.00 to $850.00 and gave the company a “buy” rating in a research note on Wednesday, September 24th. Finally, Morgan Stanley upped their target price on McKesson from $810.00 to $857.00 and gave the company an “overweight” rating in a research note on Wednesday, September 24th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, McKesson has an average rating of “Moderate Buy” and a consensus target price of $834.54.

McKesson Stock Performance

Shares of MCK opened at $788.27 on Monday. The stock has a fifty day moving average of $716.48 and a two-hundred day moving average of $710.02. The company has a market capitalization of $98.05 billion, a PE ratio of 31.43, a price-to-earnings-growth ratio of 1.42 and a beta of 0.52. McKesson Corporation has a fifty-two week low of $492.39 and a fifty-two week high of $793.97.

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

McKesson Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, October 1st. Stockholders of record on Tuesday, September 2nd were issued a dividend of $0.82 per share. This represents a $3.28 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date was 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%.

Insiders Place Their Bets

In other news, CEO Brian S. Tyler sold 11,930 shares of the company’s stock in a transaction on 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 completion of the sale, the chief executive officer directly owned 4,012 shares in the company, valued at $2,830,987.56. This represents a 74.83% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CAO Napoleon B. Rutledge, Jr. sold 329 shares of the company’s stock in a transaction on Friday, August 8th. The stock was sold at an average price of $663.67, for a total value of $218,347.43. Following the sale, the chief accounting officer owned 657 shares of the company’s stock, valued at approximately $436,031.19. The trade was a 33.37% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 24,189 shares of company stock valued at $16,722,190. 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.