Bessemer Group Inc. Reduces Holdings in McDonald's Corporation $MCD

Key Points

• Bessemer Group Inc. cut its McDonald’s stake by 3.9% in the fourth quarter, selling 23,111 shares and ending the period with 571,284 shares valued at about $174.6 million.
• Insiders also sold stock, including Joseph M. Erlinger and Jonathan Banner, and company insiders sold 12,119 shares in the last quarter overall.
• Analyst sentiment remains mixed but constructive: McDonald’s has an average rating of “Moderate Buy” with an average price target of $334.45, while the stock was recently down 0.3% and trading near its 52-week low after earnings that topped expectations.

Bessemer Group Inc. trimmed its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 3.9% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 571,284 shares of the fast-food giant's stock after selling 23,111 shares during the period. Bessemer Group Inc. owned approximately 0.08% of McDonald's worth $174,602,000 at the end of the most recent quarter.

Other large investors have also recently bought and sold shares of the company. Your Advocates Ltd. LLP acquired a new stake in McDonald's during the 4th quarter worth $27,000. Park Place Capital Corp increased its holdings in shares of McDonald's by 95.7% in the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after purchasing an additional 45 shares in the last quarter. DecisionPoint Financial LLC increased its holdings in shares of McDonald's by 1,616.7% in the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after purchasing an additional 97 shares in the last quarter. Painted Porch Advisors LLC increased its holdings in shares of McDonald's by 735.7% in the 3rd quarter. Painted Porch Advisors LLC now owns 117 shares of the fast-food giant's stock valued at $36,000 after purchasing an additional 103 shares in the last quarter. Finally, Saranac Partners Ltd purchased a new position in McDonald's during the 3rd quarter valued at about $37,000. Institutional investors and hedge funds own 70.29% of the company's stock.

Insider Activity

In related news, insider Joseph M. Erlinger sold 2,626 shares of the firm's stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $307.00, for a total transaction of $806,182.00. Following the completion of the sale, the insider directly owned 8,400 shares in the company, valued at approximately $2,578,800. This trade represents a 23.82% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jonathan Banner sold 6,201 shares of the firm's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $333.29, for a total transaction of $2,066,731.29. Following the transaction, the executive vice president directly owned 2,291 shares in the company, valued at approximately $763,567.39. The trade was a 73.02% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 12,119 shares of company stock valued at $3,945,973. Corporate insiders own 0.26% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. Evercore set a $350.00 price target on shares of McDonald's in a research note on Friday, May 8th. TD Cowen reduced their price target on shares of McDonald's from $330.00 to $300.00 and set a "hold" rating on the stock in a research report on Thursday, May 7th. Rothschild & Co Redburn upgraded shares of McDonald's from a "sell" rating to a "neutral" rating and lifted their price objective for the company from $260.00 to $306.00 in a research note on Thursday, April 23rd. JPMorgan Chase & Co. dropped their price objective on shares of McDonald's from $325.00 to $305.00 and set an "overweight" rating on the stock in a research note on Monday. Finally, UBS Group lifted their price target on shares of McDonald's from $350.00 to $365.00 and gave the stock a "buy" rating in a research note on Thursday, February 12th. Seventeen investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, McDonald's currently has an average rating of "Moderate Buy" and an average target price of $334.45.

McDonald's Stock Down 0.3%

Shares of MCD opened at $274.87 on Friday. The firm has a 50-day moving average price of $305.40 and a 200 day moving average price of $310.25. The firm has a market capitalization of $195.30 billion, a PE ratio of 22.66, a P/E/G ratio of 2.74 and a beta of 0.43. McDonald's Corporation has a 52-week low of $271.98 and a 52-week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.74 by $0.09. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The firm had revenue of $6.52 billion during the quarter, compared to analyst estimates of $6.47 billion. During the same quarter in the prior year, the firm posted $2.67 EPS. McDonald's's revenue was up 9.4% compared to the same quarter last year. On average, equities analysts expect that McDonald's Corporation will post 12.96 EPS for the current year.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s announced a landmark $750 million naming rights partnership with Chicago Fire FC for “McDonald’s Park,” a long-term branding move that expands its community presence and reinforces the company’s Chicago roots. McDonald's Expands Brand With $750M Stadium Deal
• Positive Sentiment: Some market commentary says MCD may be oversold after a steep selloff, with analysts still pointing to strong cash flow, industry-leading margins, and upside to consensus price targets. Catching Falling Knives: Is It Time to Buy These Beaten-Down Stocks? (MCD)
• Neutral Sentiment: McDonald’s remains a widely watched stock, with investor attention rising around recent earnings, valuation compression, and whether the company’s recent weakness has created a contrarian buying opportunity. McDonald's Corporation (MCD) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Jim Cramer said McDonald’s looks “tough” technically and is “breaking down,” reflecting concern that the stock’s recent weakness may continue despite its defensive reputation. Jim Cramer on McDonald’s: “QSR I Think Is the Better”
• Negative Sentiment: Another Cramer commentary argued that stocks like McDonald’s, which should benefit in tough economic periods, are instead getting “slaughtered,” underscoring broader investor skepticism toward the name right now. Jim Cramer says stocks like McDonald’s, Walmart that should be soaring in tough times are instead getting ‘slaughtered’
• Negative Sentiment: Several articles highlighted that McDonald’s stock has fallen to 52-week lows and may face additional pressure if higher gas prices continue to squeeze consumer spending and restaurant visits. McDonald's Stock Hits 52-Week Lows: High Gas Prices Could Make Things Worse

McDonald's Company 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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