McDonald’s (NYSE:MCD) Shares Up 1.1% Following Analyst Upgrade

by · The Markets Daily

McDonald’s Co. (NYSE:MCD – Get Free Report) shares rose 1.1% during mid-day trading on Monday after Citigroup raised their price target on the stock from $353.00 to $364.00. Citigroup currently has a buy rating on the stock. McDonald’s traded as high as $314.32 and last traded at $315.41. Approximately 457,648 shares changed hands during trading, a decline of 87% from the average daily volume of 3,560,683 shares. The stock had previously closed at $311.96.

A number of other equities research analysts also recently issued reports on MCD. Truist Financial cut their price objective on shares of McDonald’s from $342.00 to $340.00 and set a “buy” rating for the company in a research report on Tuesday, February 11th. Barclays boosted their target price on shares of McDonald’s from $347.00 to $355.00 and gave the stock an “overweight” rating in a report on Friday. Erste Group Bank upgraded McDonald’s from a “hold” rating to a “strong-buy” rating in a research report on Monday, March 17th. KeyCorp lifted their price objective on McDonald’s from $335.00 to $340.00 and gave the stock an “overweight” rating in a research note on Thursday, March 27th. Finally, TD Securities restated a “hold” rating and set a $300.00 target price on shares of McDonald’s in a research report on Monday, February 10th. Ten research analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $325.48.

Check Out Our Latest Analysis on McDonald’s

Insider Buying and Selling

In related news, insider Joseph M. Erlinger sold 939 shares of the business’s stock in a transaction that occurred on Wednesday, April 23rd. The shares were sold at an average price of $318.50, for a total transaction of $299,071.50. Following the completion of the transaction, the insider now owns 12,100 shares in the company, valued at $3,853,850. The trade was a 7.20 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Christopher J. Kempczinski sold 10,500 shares of the firm’s stock in a transaction that occurred on Tuesday, February 11th. The shares were sold at an average price of $310.05, for a total transaction of $3,255,525.00. Following the completion of the sale, the chief executive officer now owns 32,756 shares of the company’s stock, valued at approximately $10,155,997.80. This trade represents a 24.27 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 28,136 shares of company stock valued at $8,676,247 over the last 90 days. Corporate insiders own 0.25% of the company’s stock.

Hedge Funds Weigh In On McDonald’s

A number of large investors have recently made changes to their positions in MCD. Mattern Capital Management LLC boosted its holdings in McDonald’s by 2.0% in the fourth quarter. Mattern Capital Management LLC now owns 30,110 shares of the fast-food giant’s stock worth $8,729,000 after acquiring an additional 579 shares in the last quarter. Bell Bank raised its position in shares of McDonald’s by 3.0% in the 4th quarter. Bell Bank now owns 12,699 shares of the fast-food giant’s stock valued at $3,681,000 after purchasing an additional 371 shares during the last quarter. YANKCOM Partnership acquired a new stake in McDonald’s in the 4th quarter worth approximately $1,628,000. Integral Investment Advisors Inc. grew its position in McDonald’s by 2.6% during the 4th quarter. Integral Investment Advisors Inc. now owns 6,512 shares of the fast-food giant’s stock worth $1,888,000 after purchasing an additional 164 shares during the last quarter. Finally, PFW Advisors LLC acquired a new position in McDonald’s during the 4th quarter valued at approximately $2,471,000. 70.29% of the stock is owned by institutional investors and hedge funds.

McDonald’s Price Performance

The stock’s fifty day simple moving average is $309.16 and its 200-day simple moving average is $299.89. The firm has a market cap of $225.88 billion, a PE ratio of 27.73, a PEG ratio of 3.10 and a beta of 0.57.

McDonald’s (NYSE:MCD – Get Free Report) last issued its earnings results on Thursday, May 1st. The fast-food giant reported $2.67 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $2.67. The company had revenue of $5.96 billion during the quarter, compared to analyst estimates of $6.17 billion. McDonald’s had a negative return on equity of 181.63% and a net margin of 31.73%. The firm’s quarterly revenue was down 3.5% on a year-over-year basis. During the same quarter last year, the business posted $2.70 EPS. Analysts expect that McDonald’s Co. will post 12.25 earnings per share for the current year.

McDonald’s Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 17th. Investors of record on Monday, March 3rd were issued a dividend of $1.77 per share. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.24%. The ex-dividend date of this dividend was Monday, March 3rd. McDonald’s’s dividend payout ratio (DPR) is 62.49%.

About McDonald’s

(Get Free Report)

McDonald’s Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.

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