Franklin Resources Inc. Has $1.49 Billion Stock Position in McKesson Co. (NYSE:MCK)

Franklin Resources Inc. grew its stake in McKesson Co. (NYSE:MCK) by 4.6% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 2,620,948 shares of the company’s stock after acquiring an additional 114,396 shares during the period. Franklin Resources Inc.’s holdings in McKesson were worth $1,493,704,000 at the end of the most recent quarter.

Other hedge funds have also recently bought and sold shares of the company. Millstone Evans Group LLC bought a new stake in shares of McKesson in the 4th quarter valued at about $28,000. Synergy Asset Management LLC acquired a new stake in McKesson during the fourth quarter worth approximately $32,000. Crews Bank & Trust bought a new stake in shares of McKesson during the fourth quarter worth approximately $33,000. Atala Financial Inc acquired a new position in shares of McKesson in the fourth quarter valued at approximately $34,000. Finally, Graney & King LLC bought a new position in shares of McKesson during the fourth quarter worth approximately $38,000. 85.07% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several research analysts have weighed in on the company. Citigroup lowered their price objective on McKesson from $713.00 to $677.00 and set a “buy” rating on the stock in a research report on Friday, January 10th. Evercore ISI boosted their price objective on shares of McKesson from $650.00 to $675.00 and gave the company an “outperform” rating in a report on Thursday, February 6th. Morgan Stanley raised their target price on shares of McKesson from $612.00 to $642.00 and gave the stock an “overweight” rating in a report on Tuesday, December 17th. Mizuho initiated coverage on McKesson in a research report on Wednesday, December 4th. They set a “neutral” rating and a $630.00 target price for the company. Finally, Bank of America reduced their price target on shares of McKesson from $680.00 to $650.00 and set a “buy” rating on the stock in a research report on Monday, January 6th. Two equities research analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, McKesson has a consensus rating of “Moderate Buy” and an average target price of $649.36.

Insider Buying and Selling

In other news, CEO Brian S. Tyler sold 8,961 shares of McKesson stock in a transaction on Friday, February 21st. The shares were sold at an average price of $597.99, for a total value of $5,358,588.39. Following the completion of the sale, the chief executive officer now owns 60,664 shares in the company, valued at $36,276,465.36. The trade was a 12.87 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Leann B. Smith sold 579 shares of the stock in a transaction on Thursday, January 2nd. The stock was sold at an average price of $572.79, for a total transaction of $331,645.41. Following the transaction, the executive vice president now directly owns 864 shares in the company, valued at approximately $494,890.56. This represents a 40.12 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 18,689 shares of company stock valued at $11,187,351 over the last 90 days. Company insiders own 0.11% of the company’s stock.

McKesson Price Performance

Shares of MCK opened at $668.25 on Monday. The business has a 50-day moving average of $623.58 and a 200-day moving average of $579.83. McKesson Co. has a 1 year low of $464.42 and a 1 year high of $673.00. The company has a market capitalization of $83.75 billion, a price-to-earnings ratio of 30.60, a price-to-earnings-growth ratio of 1.29 and a beta of 0.52.

McKesson (NYSE:MCK) last issued its quarterly earnings results on Wednesday, February 5th. The company reported $8.03 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $8.60 by ($0.57). McKesson had a negative return on equity of 181.26% and a net margin of 0.82%. As a group, sell-side analysts anticipate that McKesson Co. will post 32.77 EPS for the current year.

McKesson Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, April 1st. Investors of record on Monday, March 3rd will be given a dividend of $0.71 per share. The ex-dividend date is Monday, March 3rd. This represents a $2.84 annualized dividend and a dividend yield of 0.42%. McKesson’s payout ratio is 13.00%.

About McKesson

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.