Lee Danner & Bass Inc. Makes New Investment in McKesson Co. (NYSE:MCK)

Lee Danner & Bass Inc. bought a new position in shares of McKesson Co. (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 bought 2,622 shares of the company’s stock, valued at approximately $1,531,000.

Several other large investors also recently bought and sold shares of MCK. Norges Bank purchased a new stake in McKesson during the 4th quarter worth approximately $1,024,140,000. Swedbank AB purchased a new stake in McKesson during the 1st quarter worth approximately $669,326,000. TD Asset Management Inc grew its position in McKesson by 202.8% during the 4th quarter. TD Asset Management Inc now owns 602,138 shares of the company’s stock worth $278,778,000 after purchasing an additional 403,312 shares during the last quarter. Bessemer Group Inc. grew its position in McKesson by 3,621.7% during the 1st quarter. Bessemer Group Inc. now owns 349,395 shares of the company’s stock worth $187,572,000 after purchasing an additional 340,007 shares during the last quarter. Finally, Bristol Gate Capital Partners Inc. purchased a new stake in McKesson during the 1st quarter worth approximately $97,510,000. Hedge funds and other institutional investors own 85.07% of the company’s stock.

Wall Street Analysts Forecast Growth

Several analysts have commented on MCK shares. Robert W. Baird decreased their price objective on shares of McKesson from $694.00 to $671.00 and set an “outperform” rating for the company in a research note on Thursday, August 8th. TD Cowen boosted their target price on shares of McKesson from $563.00 to $652.00 and gave the company a “buy” rating in a research note on Wednesday, May 8th. Bank of America boosted their target price on shares of McKesson from $590.00 to $670.00 and gave the company a “buy” rating in a research note on Tuesday, June 25th. Barclays boosted their target price on shares of McKesson from $596.00 to $616.00 and gave the company an “overweight” rating in a research note on Thursday, August 8th. Finally, Mizuho upped their price objective on shares of McKesson from $540.00 to $570.00 and gave the stock a “neutral” rating in a research report on Thursday, August 8th. Two research analysts have rated the stock with a hold rating and fourteen have given a buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $620.29.

Insiders Place Their Bets

In other McKesson news, CEO Brian S. Tyler sold 3,753 shares of the stock in a transaction dated Wednesday, June 5th. The shares were sold at an average price of $574.41, for a total transaction of $2,155,760.73. Following the completion of the transaction, the chief executive officer now owns 89,845 shares of the company’s stock, valued at $51,607,866.45. The sale was disclosed in a legal filing with the SEC, which is available at this link. In other news, Director Maria Martinez sold 483 shares of the stock in a transaction dated Friday, June 7th. The shares were sold at an average price of $585.88, for a total transaction of $282,980.04. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Brian S. Tyler sold 3,753 shares of the stock in a transaction dated Wednesday, June 5th. The stock was sold at an average price of $574.41, for a total transaction of $2,155,760.73. Following the sale, the chief executive officer now directly owns 89,845 shares in the company, valued at approximately $51,607,866.45. The disclosure for this sale can be found here. Insiders sold a total of 12,342 shares of company stock valued at $7,319,742 over the last 90 days. 0.11% of the stock is owned by company insiders.

McKesson Price Performance

Shares of MCK traded up $5.63 during mid-day trading on Friday, reaching $561.08. The stock had a trading volume of 953,797 shares, compared to its average volume of 740,009. McKesson Co. has a 52-week low of $404.72 and a 52-week high of $637.51. The business’s fifty day moving average is $580.87 and its 200 day moving average is $555.49. The firm has a market cap of $72.90 billion, a price-to-earnings ratio of 25.07, a P/E/G ratio of 1.46 and a beta of 0.45.

McKesson (NYSE:MCK) last announced its quarterly earnings data on Wednesday, August 7th. The company reported $7.88 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $7.21 by $0.67. The firm had revenue of $79.28 billion during the quarter, compared to analyst estimates of $82.53 billion. McKesson had a net margin of 0.97% and a negative return on equity of 245.88%. McKesson’s quarterly revenue was up 6.4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $7.27 earnings per share. As a group, sell-side analysts anticipate that McKesson Co. will post 31.68 EPS for the current fiscal year.

McKesson Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 1st. Shareholders of record on Monday, September 2nd will be paid a dividend of $0.71 per share. This represents a $2.84 annualized dividend and a yield of 0.51%. The ex-dividend date of this dividend is Friday, August 30th. This is a positive change from McKesson’s previous quarterly dividend of $0.62. McKesson’s dividend payout ratio (DPR) is 12.69%.

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.