Redmile Group LLC Makes New $11.12 Million Investment in McKesson Co. (NYSE:MCK)

Redmile Group LLC purchased a new position in shares of McKesson Co. (NYSE:MCK) during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor purchased 20,707 shares of the company’s stock, valued at approximately $11,117,000.

Several other hedge funds have also recently added to or reduced their stakes in MCK. Intrust Bank NA purchased a new stake in McKesson in the fourth quarter valued at $206,000. Allspring Global Investments Holdings LLC increased its stake in shares of McKesson by 6.8% during the fourth quarter. Allspring Global Investments Holdings LLC now owns 85,779 shares of the company’s stock worth $39,714,000 after acquiring an additional 5,425 shares during the period. Heritage Wealth Management LLC purchased a new position in shares of McKesson during the 4th quarter worth approximately $1,538,000. Councilmark Asset Management LLC purchased a new position in McKesson in the first quarter worth $5,160,000. Finally, Atlantic Edge Private Wealth Management LLC acquired a new stake in McKesson in the fourth quarter valued at $2,487,000. Institutional investors and hedge funds own 85.07% of the company’s stock.

McKesson Stock Performance

Shares of NYSE:MCK traded up $6.55 during trading on Monday, reaching $606.71. 666,165 shares of the stock were exchanged, compared to its average volume of 700,617. McKesson Co. has a 12-month low of $395.30 and a 12-month high of $612.17. The firm’s 50-day moving average price is $583.58 and its 200 day moving average price is $543.72. The firm has a market cap of $78.84 billion, a price-to-earnings ratio of 27.11, a price-to-earnings-growth ratio of 1.40 and a beta of 0.45.

McKesson (NYSE:MCK) last released its quarterly earnings data on Tuesday, May 7th. The company reported $6.18 earnings per share (EPS) for the quarter, missing the consensus estimate of $6.34 by ($0.16). McKesson had a negative return on equity of 245.88% and a net margin of 0.97%. The business had revenue of $76.36 billion during the quarter, compared to analyst estimates of $79.32 billion. During the same period in the previous year, the company earned $7.19 EPS. McKesson’s revenue was up 10.8% on a year-over-year basis. As a group, equities research analysts forecast that McKesson Co. will post 31.68 EPS for the current year.

Insider Buying and Selling at McKesson

In related news, Director Maria Martinez sold 483 shares of the firm’s stock in a transaction on Friday, June 7th. The shares were sold at an average price of $585.88, for a total transaction of $282,980.04. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. In other McKesson news, Director Susan R. Salka sold 606 shares of the firm’s stock in a transaction on Friday, May 10th. The shares were sold at an average price of $558.04, for a total transaction of $338,172.24. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Maria Martinez sold 483 shares of the business’s stock in a transaction dated Friday, June 7th. The stock was sold at an average price of $585.88, for a total transaction of $282,980.04. The disclosure for this sale can be found here. Insiders sold 29,567 shares of company stock valued at $16,691,841 over the last 90 days. 0.11% of the stock is owned by corporate insiders.

Analyst Ratings Changes

Several equities research analysts have recently commented on the company. Robert W. Baird boosted their price target on McKesson from $679.00 to $694.00 and gave the stock an “outperform” rating in a research note on Tuesday, July 9th. 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. Deutsche Bank Aktiengesellschaft decreased their price target on shares of McKesson from $547.00 to $545.00 and set a “buy” rating on the stock in a research note on Thursday, May 9th. StockNews.com raised shares of McKesson from a “buy” rating to a “strong-buy” rating in a research note on Tuesday, July 23rd. Finally, Argus lifted their target price on shares of McKesson from $570.00 to $670.00 and gave the stock a “buy” rating in a research note on Monday, June 24th. Two analysts have rated the stock with a hold rating, fourteen have given a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat, McKesson presently has an average rating of “Moderate Buy” and a consensus target price of $599.33.

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.