Islay Capital Management LLC Makes New Investment in McKesson Co. (NYSE:MCK)

Islay Capital Management LLC acquired a new position in shares of McKesson Co. (NYSE:MCK) in the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund acquired 2,253 shares of the company’s stock, valued at approximately $1,043,000.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the stock. OFI Invest Asset Management purchased a new position in McKesson in the third quarter valued at approximately $26,000. Legacy Financial Group LLC purchased a new stake in shares of McKesson during the third quarter worth $27,000. BKM Wealth Management LLC purchased a new stake in shares of McKesson during the fourth quarter worth $31,000. WASHINGTON TRUST Co lifted its position in shares of McKesson by 42.5% during the fourth quarter. WASHINGTON TRUST Co now owns 114 shares of the company’s stock worth $53,000 after acquiring an additional 34 shares in the last quarter. Finally, Milestone Investment Advisors LLC purchased a new stake in shares of McKesson during the third quarter worth $61,000. 85.07% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on MCK. StockNews.com raised shares of McKesson from a “buy” rating to a “strong-buy” rating in a report on Thursday, April 25th. SVB Leerink started coverage on McKesson in a research note on Monday, February 26th. They issued an “outperform” rating and a $600.00 target price on the stock. Argus increased their target price on McKesson from $510.00 to $570.00 and gave the company a “buy” rating in a research note on Wednesday, April 10th. Barclays began coverage on McKesson in a research note on Wednesday, January 3rd. They issued an “overweight” rating and a $537.00 target price on the stock. Finally, Mizuho raised their price objective on McKesson from $450.00 to $505.00 and gave the company a “neutral” rating in a research note on Friday, February 9th. Two research analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $536.71.

McKesson Trading Up 0.2 %

McKesson stock traded up $0.98 during trading hours on Tuesday, hitting $537.07. 178,651 shares of the stock traded hands, compared to its average volume of 686,499. The firm’s 50-day moving average price is $528.65 and its two-hundred day moving average price is $490.49. McKesson Co. has a one year low of $352.34 and a one year high of $544.81. The company has a market cap of $70.58 billion, a PE ratio of 24.30, a PEG ratio of 1.44 and a beta of 0.45.

McKesson (NYSE:MCK) last released its earnings results on Wednesday, February 7th. The company reported $7.74 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.05 by $0.69. McKesson had a net margin of 0.99% and a negative return on equity of 262.63%. The firm had revenue of $80.90 billion during the quarter, compared to analyst estimates of $77.93 billion. During the same period last year, the business earned $6.90 earnings per share. The business’s revenue was up 14.8% on a year-over-year basis. On average, sell-side analysts expect that McKesson Co. will post 27.59 earnings per share for the current fiscal year.

McKesson Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, July 1st. Investors of record on Monday, June 3rd will be issued a $0.62 dividend. The ex-dividend date is Friday, May 31st. This represents a $2.48 dividend on an annualized basis and a yield of 0.46%. McKesson’s payout ratio is currently 11.24%.

Insider Buying and Selling

In other McKesson news, CEO Brian S. Tyler sold 3,473 shares of the business’s stock in a transaction on Friday, March 15th. The shares were sold at an average price of $524.55, for a total transaction of $1,821,762.15. Following the completion of the sale, the chief executive officer now directly owns 43,445 shares in the company, valued at approximately $22,789,074.75. The sale was disclosed in a document filed with the SEC, which is available through this link. In other McKesson news, EVP Leann B. Smith sold 186 shares of the business’s stock in a transaction on Tuesday, February 13th. The shares were sold at an average price of $496.00, for a total transaction of $92,256.00. Following the completion of the sale, the executive vice president now directly owns 1,511 shares in the company, valued at approximately $749,456. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Brian S. Tyler sold 3,473 shares of the business’s stock in a transaction on Friday, March 15th. The shares were sold at an average price of $524.55, for a total transaction of $1,821,762.15. Following the sale, the chief executive officer now owns 43,445 shares of the company’s stock, valued at $22,789,074.75. The disclosure for this sale can be found here. 0.21% of the stock is owned by company insiders.

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.