147,764 Shares in McDonald's Corporation $MCD Purchased by SEB Asset Management AB

Key Points

• SEB Asset Management AB disclosed a new first-quarter stake in McDonald’s, buying 147,764 shares valued at about $45.9 million.
• McDonald’s recently reported strong quarterly results, with EPS of $2.83 beating estimates and revenue of $6.52 billion topping expectations; revenue also rose 9.4% year over year.
• The stock has drawn mixed but generally constructive analyst attention, with 15 Buy ratings and a consensus Moderate Buy target of $336.32, even as shares trade near their 52-week low and some firms trim price targets.

SEB Asset Management AB bought a new stake in McDonald's Corporation (NYSE:MCD - Free Report) during the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor bought 147,764 shares of the fast-food giant's stock, valued at approximately $45,924,000.

Several other hedge funds and other institutional investors also recently bought and sold shares of the business. Vanguard Group Inc. lifted its stake in McDonald's by 1.0% during the 4th quarter. Vanguard Group Inc. now owns 72,351,127 shares of the fast-food giant's stock valued at $22,112,675,000 after acquiring an additional 703,458 shares during the period. State Street Corp boosted its holdings in shares of McDonald's by 2.7% in the 4th quarter. State Street Corp now owns 35,983,997 shares of the fast-food giant's stock valued at $10,997,789,000 after acquiring an additional 959,140 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of McDonald's by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 17,038,519 shares of the fast-food giant's stock worth $5,195,965,000 after acquiring an additional 76,090 shares during the period. Price T Rowe Associates Inc. MD increased its stake in shares of McDonald's by 3.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 9,474,749 shares of the fast-food giant's stock worth $2,895,768,000 after acquiring an additional 277,617 shares during the period. Finally, Norges Bank purchased a new position in shares of McDonald's during the fourth quarter worth $2,890,438,000. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Price Performance

MCD opened at $267.74 on Friday. The firm has a fifty day moving average price of $277.07 and a 200 day moving average price of $300.33. McDonald's Corporation has a 1 year low of $264.09 and a 1 year high of $341.75. The stock has a market cap of $190.23 billion, a P/E ratio of 22.07, a P/E/G ratio of 2.78 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.74 by $0.09. The firm had revenue of $6.52 billion for the quarter, compared to the consensus estimate of $6.47 billion. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The firm's quarterly revenue was up 9.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.67 earnings per share. Equities analysts expect that McDonald's Corporation will post 12.86 EPS for the current year.

McDonald's Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were paid a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a dividend yield of 2.8%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald's's dividend payout ratio is presently 61.34%.

Analyst Ratings Changes

MCD has been the subject of a number of research reports. Tigress Financial boosted their target price on shares of McDonald's from $385.00 to $390.00 and gave the company a "buy" rating in a research report on Friday. Rothschild & Co Redburn raised McDonald's from a "sell" rating to a "neutral" rating and increased their price target for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. Wells Fargo & Company reduced their price objective on McDonald's from $320.00 to $300.00 and set an "overweight" rating for the company in a research note on Thursday. JPMorgan Chase & Co. decreased their price objective on McDonald's from $325.00 to $305.00 and set an "overweight" rating for the company in a report on Monday, May 11th. Finally, Morgan Stanley lowered their target price on McDonald's from $331.00 to $322.00 and set an "equal weight" rating on the stock in a research note on Wednesday. Fifteen research analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to data from MarketBeat.com, McDonald's has a consensus rating of "Moderate Buy" and a consensus target price of $336.32.

McDonald's News Summary

Here are the key news stories impacting McDonald's this week:

• Positive Sentiment: Tigress Financial raised its price target on McDonald’s to $390 from $385 and reiterated a buy rating, signaling confidence that the stock has meaningful upside from current levels.
• Positive Sentiment: Analyst coverage and commentary continue to highlight McDonald’s value offerings, loyalty efforts, localized marketing, and menu innovation as ways the company can support customer traffic and defend sales trends.
• Neutral Sentiment: McDonald’s is expected to report second-quarter earnings next month, with consensus calling for modest single-digit profit growth, keeping investor focus on whether traffic and margins improve.
• Neutral Sentiment: Recent product news, including the new Caesar sauce and other menu rollouts, is generating consumer interest, but the items appear more promotional than clearly material to near-term earnings.
• Negative Sentiment: Articles questioning why McDonald’s stock is at nearly two-year lows and noting a 10.1% decline over the past six months versus a rising S&P 500 suggest investors are worried about relative underperformance and slowing momentum.
• Negative Sentiment: Commentary describing a “McProblem” that is not getting better points to continuing concerns about business execution, customer traffic, or overall sentiment toward the stock.
• Negative Sentiment: One recent piece also urged investors to stay skeptical, indicating that while the stock may look attractive to some value investors, there are still fundamental questions weighing on shares.

Insider Activity

In related news, insider Joseph M. Erlinger sold 5,252 shares of the company's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the transaction, the insider owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the company's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the transaction, the executive vice president directly owned 6,268 shares of the company's stock, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 8,681 shares of company stock worth $2,456,440. Corporate insiders own 0.26% of the company's stock.

McDonald's Profile

McDonald's Corporation NYSE: MCD is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald's serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand's national and international expansion.

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