BKM Wealth Management LLC Sells 2,591 Shares of McDonald's Corporation $MCD

Key Points

• BKM Wealth Management LLC reduced its stake in McDonald's by 29.4% in Q2, selling 2,591 shares and leaving it with 6,208 shares worth approximately $1.81 million.
• McDonald's reported earnings per share of $3.19 for the last quarter, surpassing estimates, with a revenue of $6.84 billion, reflecting a 5.4% year-over-year increase.
• The fast-food giant has an institutional ownership of 70.29%, with various hedge funds either increasing or initiating stakes in the company during the recent quarters.

BKM Wealth Management LLC trimmed its position in McDonald's Corporation (NYSE:MCD - Free Report) by 29.4% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 6,208 shares of the fast-food giant's stock after selling 2,591 shares during the quarter. BKM Wealth Management LLC's holdings in McDonald's were worth $1,814,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. HFM Investment Advisors LLC bought a new stake in shares of McDonald's during the first quarter worth $26,000. Nova Wealth Management Inc. bought a new stake in shares of McDonald's during the first quarter worth $26,000. GFG Capital LLC bought a new stake in shares of McDonald's during the second quarter worth $29,000. Abound Financial LLC bought a new stake in shares of McDonald's during the first quarter worth $30,000. Finally, Redmont Wealth Advisors LLC bought a new stake in shares of McDonald's during the first quarter worth $31,000. 70.29% of the stock is owned by institutional investors.

McDonald's Trading Up 0.9%

Shares of NYSE MCD opened at $308.02 on Friday. The firm's 50-day moving average price is $306.29 and its 200-day moving average price is $305.50. McDonald's Corporation has a 1-year low of $276.53 and a 1-year high of $326.32. The firm has a market capitalization of $219.80 billion, a P/E ratio of 26.39, a P/E/G ratio of 3.25 and a beta of 0.50.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings data on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share for the quarter, beating the consensus estimate 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 firm had revenue of $6.84 billion for the quarter, compared to analyst estimates of $6.68 billion. During the same quarter in the prior year, the business earned $2.97 earnings per share. The business's quarterly revenue was up 5.4% compared to the same quarter last year. Equities research analysts forecast that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd were issued a $1.77 dividend. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date was Tuesday, September 2nd. McDonald's's dividend payout ratio is currently 60.67%.

Insider Buying and Selling at McDonald's

In related news, CMO Edith Morgan Flatley sold 1,000 shares of the company's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $315.00, for a total value of $315,000.00. Following the sale, the chief marketing officer owned 6,858 shares in the company, valued at $2,160,270. This represents a 12.73% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Jonathan Banner sold 1,000 shares of the company's stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $310.00, for a total transaction of $310,000.00. Following the completion of the sale, the executive vice president owned 99 shares in the company, valued at $30,690. This represents a 90.99% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 6,402 shares of company stock worth $1,973,407. 0.25% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on MCD. Evercore ISI boosted their target price on shares of McDonald's from $350.00 to $360.00 and gave the stock an "outperform" rating in a research note on Friday, August 8th. Royal Bank Of Canada started coverage on shares of McDonald's in a research note on Wednesday, October 8th. They set a "sector perform" rating and a $320.00 target price on the stock. The Goldman Sachs Group raised shares of McDonald's from a "neutral" rating to a "buy" rating and set a $345.00 price objective on the stock in a research note on Thursday, July 10th. KeyCorp reaffirmed an "overweight" rating and set a $335.00 price target (up previously from $325.00) on shares of McDonald's in a research report on Thursday, August 7th. Finally, Stifel Nicolaus upped their price target on shares of McDonald's from $300.00 to $315.00 and gave the company a "hold" rating in a research report on Friday, August 22nd. Eleven research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $324.68.

About McDonald's

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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