Ally Financial Inc. Invests $1.09 Million in McDonald's Corporation $MCD

Key Points

• Ally Financial Inc. has acquired 3,500 shares of McDonald's Corporation, representing an investment of approximately $1.09 million, during the first quarter.
• McDonald's recently announced a quarterly dividend of $1.77 per share, expected to be paid on September 16th, with a yield of 2.3% and a payout ratio of 60.67%.
• Analysts have varied ratings on McDonald's stock, with updates including a price target increase by Goldman Sachs from a "neutral" to a "buy" rating and a target price set at $345.00.

Ally Financial Inc. bought a new position in shares of McDonald's Corporation (NYSE:MCD - Free Report) during the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm bought 3,500 shares of the fast-food giant's stock, valued at approximately $1,093,000.

Other hedge funds also recently made changes to their positions in the company. Mascagni Wealth Management Inc. acquired a new stake in shares of McDonald's during the 4th quarter worth approximately $25,000. Pinney & Scofield Inc. acquired a new stake in shares of McDonald's during the 4th quarter worth approximately $29,000. Abound Financial LLC acquired a new stake in shares of McDonald's during the 1st quarter worth approximately $30,000. Copia Wealth Management acquired a new stake in shares of McDonald's during the 4th quarter worth approximately $31,000. Finally, Redmont Wealth Advisors LLC acquired a new stake in shares of McDonald's during the 1st quarter worth approximately $31,000. 70.29% of the stock is owned by institutional investors.

McDonald's Stock Performance

MCD stock opened at $313.8010 on Friday. The company has a fifty day moving average price of $299.02 and a 200-day moving average price of $305.84. The company has a market capitalization of $223.93 billion, a P/E ratio of 26.89, a PEG ratio of 3.20 and a beta of 0.52. McDonald's Corporation has a 52-week low of $276.53 and a 52-week high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share for the quarter, topping analysts' consensus estimates of $3.15 by $0.04. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. The business had revenue of $6.84 billion during the quarter, compared to the consensus estimate of $6.68 billion. During the same quarter last year, the firm earned $2.97 earnings per share. McDonald's's quarterly revenue was up 5.4% on a year-over-year basis. As a group, sell-side analysts forecast that McDonald's Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be issued a dividend of $1.77 per share. The ex-dividend date is Tuesday, September 2nd. This represents a $7.08 annualized dividend and a yield of 2.3%. McDonald's's payout ratio is 60.67%.

Analysts Set New Price Targets

A number of analysts have weighed in on the stock. Guggenheim restated a "neutral" rating on shares of McDonald's in a research report on Friday, August 8th. The Goldman Sachs Group upgraded shares of McDonald's from a "neutral" rating to a "buy" rating and set a $345.00 target price on the stock in a research report on Thursday, July 10th. Truist Financial raised their target price on shares of McDonald's from $356.00 to $360.00 and gave the company a "buy" rating in a research report on Thursday, August 7th. Piper Sandler raised their target price on shares of McDonald's from $314.00 to $325.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. Finally, TD Securities restated a "hold" rating and issued a $305.00 target price on shares of McDonald's in a research report on Thursday, June 5th. Thirteen equities research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $326.38.

Insider Activity

In other McDonald's news, CMO Edith Morgan Flatley sold 1,000 shares of McDonald's stock in a transaction dated Thursday, July 10th. The shares were sold at an average price of $300.00, for a total value of $300,000.00. Following the sale, the chief marketing officer owned 8,858 shares of the company's stock, valued at approximately $2,657,400. The trade was a 10.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, EVP Desiree Ralls-Morrison sold 2,487 shares of the business's stock in a transaction that occurred on Wednesday, August 6th. The shares were sold at an average price of $310.00, for a total transaction of $770,970.00. Following the completion of the sale, the executive vice president directly owned 8,754 shares in the company, valued at approximately $2,713,740. This trade represents a 22.12% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 7,341 shares of company stock valued at $2,229,327 in the last three months. 0.25% of the stock is owned by company insiders.

McDonald's Company Profile

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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