Capital Management Associates Inc Trims Position in McDonald's Corporation $MCD

Key Points

• Capital Management Associates Inc reduced its stake in McDonald's Corporation by 28.9% during the second quarter, maintaining 3,881 shares valued at approximately $1,134,000.
• Insider Joseph M. Erlinger sold 939 shares at an average price of $299.49, while CMO Edith Morgan Flatley sold 1,000 shares at $315.00, indicating significant insider selling activity.
• McDonald's announced a quarterly dividend of $1.77 per share, yielding 2.4%, with an annualized dividend payout of $7.08 and a payout ratio of 60.67%.

Capital Management Associates Inc trimmed its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 28.9% in the second quarter, according to its most recent disclosure with the SEC. The fund owned 3,881 shares of the fast-food giant's stock after selling 1,579 shares during the period. Capital Management Associates Inc's holdings in McDonald's were worth $1,134,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Brighton Jones LLC raised its holdings in McDonald's by 21.6% during the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock worth $2,692,000 after purchasing an additional 1,649 shares in the last quarter. Revolve Wealth Partners LLC raised its holdings in McDonald's by 2.8% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant's stock worth $563,000 after purchasing an additional 52 shares in the last quarter. Quotient Wealth Partners LLC raised its holdings in McDonald's by 10.9% during the first quarter. Quotient Wealth Partners LLC now owns 2,616 shares of the fast-food giant's stock worth $817,000 after purchasing an additional 258 shares in the last quarter. SSA Swiss Advisors AG purchased a new position in McDonald's during the first quarter worth about $175,000. Finally, Wealthcare Advisory Partners LLC raised its holdings in McDonald's by 2.8% during the first quarter. Wealthcare Advisory Partners LLC now owns 9,441 shares of the fast-food giant's stock worth $2,949,000 after purchasing an additional 256 shares in the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at McDonald's

In other news, insider Joseph M. Erlinger sold 939 shares of the firm's stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total value of $281,221.11. Following the transaction, the insider owned 9,283 shares of the company's stock, valued at approximately $2,780,165.67. This trade represents a 9.19% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CMO Edith Morgan Flatley sold 1,000 shares of the firm's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $315.00, for a total transaction of $315,000.00. Following the completion of the transaction, the chief marketing officer directly owned 6,858 shares in the company, valued at approximately $2,160,270. This represents a 12.73% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 6,402 shares of company stock worth $1,973,407. Company insiders own 0.25% of the company's stock.

McDonald's Stock Down 0.6%

NYSE:MCD opened at $294.44 on Thursday. The company has a market cap of $210.11 billion, a P/E ratio of 25.23, a P/E/G ratio of 3.02 and a beta of 0.50. McDonald's Corporation has a fifty-two week low of $276.53 and a fifty-two week high of $326.32. The firm's 50 day moving average is $306.56 and its two-hundred day moving average is $305.94.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly 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. The company had revenue of $6.84 billion for the quarter, compared to the consensus estimate of $6.68 billion. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. McDonald's's revenue was up 5.4% on a year-over-year basis. During the same quarter last year, the firm posted $2.97 earnings per share. Research analysts forecast that McDonald's Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd were paid a dividend of $1.77 per share. The ex-dividend date of this dividend was Tuesday, September 2nd. This represents a $7.08 dividend on an annualized basis and a yield of 2.4%. McDonald's's dividend payout ratio (DPR) is currently 60.67%.

Analyst Ratings Changes

Several research firms recently issued reports on MCD. Melius began coverage on shares of McDonald's in a report on Monday, July 14th. They set a "sell" rating and a $250.00 price target for the company. Royal Bank Of Canada set a $320.00 price target on shares of McDonald's in a report on Wednesday. Argus cut shares of McDonald's from a "buy" rating to a "hold" rating in a report on Friday, June 13th. KeyCorp reissued an "overweight" rating and set a $335.00 price target (up from $325.00) on shares of McDonald's in a report on Thursday, August 7th. Finally, Morgan Stanley upped their target price on shares of McDonald's from $324.00 to $326.00 and gave the stock an "equal weight" rating in a research report on Monday, July 14th. Eleven investment analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $324.73.

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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