McKesson (MCK) Hits New 1-Year Low on Insider Selling

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McKesson Co. (NYSE:MCK)’s share price reached a new 52-week low during trading on Wednesday after an insider sold shares in the company. The stock traded as low as $122.53 and last traded at $122.57, with a volume of 56847 shares changing hands. The stock had previously closed at $125.43.

Specifically, Director N Anthony Coles sold 1,350 shares of the business’s stock in a transaction on Friday, August 31st. The shares were sold at an average price of $128.69, for a total value of $173,731.50. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.87% of the stock is currently owned by company insiders.

Several equities analysts have commented on the stock. Royal Bank of Canada dropped their price target on shares of McKesson to $158.00 and set a “market perform” rating for the company in a research note on Friday, June 29th. ValuEngine downgraded shares of McKesson from a “sell” rating to a “strong sell” rating in a research note on Saturday, June 2nd. Leerink Swann set a $160.00 price target on shares of McKesson and gave the stock a “market perform” rating in a research note on Tuesday, May 29th. Robert W. Baird downgraded shares of McKesson from an “outperform” rating to a “neutral” rating in a research note on Friday, July 20th. Finally, Standpoint Research upgraded shares of McKesson from a “hold” rating to a “buy” rating in a research note on Tuesday, July 10th. Two investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and nine have issued a buy rating to the company. The company has an average rating of “Hold” and an average price target of $154.30.

The company has a debt-to-equity ratio of 0.68, a quick ratio of 0.57 and a current ratio of 1.00. The company has a market capitalization of $25.72 billion, a P/E ratio of 9.92, a price-to-earnings-growth ratio of 1.37 and a beta of 1.25.

McKesson (NYSE:MCK) last issued its earnings results on Thursday, July 26th. The company reported $2.90 EPS for the quarter, topping analysts’ consensus estimates of $2.89 by $0.01. The firm had revenue of $52.61 billion during the quarter, compared to the consensus estimate of $52.91 billion. McKesson had a negative net margin of 0.18% and a positive return on equity of 25.19%. The company’s revenue was up 3.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $2.47 earnings per share. research analysts expect that McKesson Co. will post 13.33 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Monday, October 1st. Investors of record on Tuesday, September 4th will be paid a dividend of $0.39 per share. The ex-dividend date is Friday, August 31st. This represents a $1.56 dividend on an annualized basis and a dividend yield of 1.24%. This is an increase from McKesson’s previous quarterly dividend of $0.34. McKesson’s payout ratio is presently 12.36%.

Several hedge funds have recently modified their holdings of the stock. Boston Partners grew its stake in shares of McKesson by 54.5% during the second quarter. Boston Partners now owns 6,237,042 shares of the company’s stock worth $832,021,000 after purchasing an additional 2,200,669 shares in the last quarter. Vulcan Value Partners LLC grew its stake in shares of McKesson by 7.8% during the second quarter. Vulcan Value Partners LLC now owns 3,768,099 shares of the company’s stock worth $502,664,000 after purchasing an additional 273,090 shares in the last quarter. Pzena Investment Management LLC grew its stake in shares of McKesson by 7.6% during the second quarter. Pzena Investment Management LLC now owns 2,836,710 shares of the company’s stock worth $378,417,000 after purchasing an additional 201,062 shares in the last quarter. Kiltearn Partners LLP grew its stake in shares of McKesson by 6.3% during the first quarter. Kiltearn Partners LLP now owns 1,914,898 shares of the company’s stock worth $269,350,000 after purchasing an additional 112,800 shares in the last quarter. Finally, Wells Fargo & Company MN grew its stake in shares of McKesson by 13.3% during the first quarter. Wells Fargo & Company MN now owns 1,859,883 shares of the company’s stock worth $262,000,000 after purchasing an additional 218,530 shares in the last quarter. Hedge funds and other institutional investors own 88.58% of the company’s stock.

About McKesson (NYSE:MCK)

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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