Centerstone Investors LLC Cuts Position in McDonald's Corporation $MCD

Key Points

• Centerstone Investors LLC reduced its holdings in McDonald's Corporation by 73.8% during the first quarter, now owning 2,142 shares valued at approximately $669,000.
• Various hedge funds have increased their stakes, with First American Trust FSB raising its position by 55.9% and Banque Transatlantique SA increasing theirs by 58.0% during the same period.
• McDonald's has declared a quarterly dividend of $1.77 per share, set to be paid on September 16th, reflecting an annualized yield of 2.2%.

Centerstone Investors LLC cut its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 73.8% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 2,142 shares of the fast-food giant's stock after selling 6,027 shares during the period. McDonald's makes up 1.6% of Centerstone Investors LLC's holdings, making the stock its 16th largest position. Centerstone Investors LLC's holdings in McDonald's were worth $669,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in the stock. WealthPlan Investment Management LLC lifted its position in McDonald's by 0.9% in the 1st quarter. WealthPlan Investment Management LLC now owns 3,630 shares of the fast-food giant's stock valued at $1,134,000 after acquiring an additional 32 shares in the last quarter. Granite Bay Wealth Management LLC lifted its position in McDonald's by 3.5% in the 1st quarter. Granite Bay Wealth Management LLC now owns 988 shares of the fast-food giant's stock valued at $309,000 after acquiring an additional 33 shares in the last quarter. CVA Family Office LLC lifted its position in McDonald's by 1.9% in the 1st quarter. CVA Family Office LLC now owns 1,793 shares of the fast-food giant's stock valued at $560,000 after acquiring an additional 33 shares in the last quarter. Consilium Wealth Advisory LLC lifted its position in McDonald's by 2.5% in the 1st quarter. Consilium Wealth Advisory LLC now owns 1,334 shares of the fast-food giant's stock valued at $417,000 after acquiring an additional 33 shares in the last quarter. Finally, Security Financial Services INC. lifted its position in McDonald's by 0.7% in the 1st quarter. Security Financial Services INC. now owns 5,043 shares of the fast-food giant's stock valued at $1,575,000 after acquiring an additional 33 shares in the last quarter. 70.29% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other news, insider Joseph M. Erlinger sold 939 shares of the company's stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total transaction of $281,221.11. Following the completion of the transaction, the insider directly owned 9,283 shares of the company's stock, valued at approximately $2,780,165.67. This represents a 9.19% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, EVP Jonathan Banner sold 1,000 shares of the business's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $310.00, for a total transaction of $310,000.00. Following the transaction, 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. In the last three months, insiders sold 8,341 shares of company stock valued at $2,544,327. 0.25% of the stock is currently owned by insiders.

McDonald's Price Performance

McDonald's stock traded down $1.71 during mid-day trading on Monday, hitting $312.67. The company's stock had a trading volume of 2,849,869 shares, compared to its average volume of 3,559,762. The stock has a market cap of $223.12 billion, a price-to-earnings ratio of 26.79, a price-to-earnings-growth ratio of 3.20 and a beta of 0.49. The business has a 50 day moving average price of $303.87 and a 200-day moving average price of $306.51. McDonald's Corporation has a 12 month low of $276.53 and a 12 month high of $326.32.

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 the consensus estimate of $3.15 by $0.04. The business had revenue of $6.84 billion during 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%. The firm's revenue for the quarter was up 5.4% on a year-over-year basis. During the same period in the previous year, the firm posted $2.97 earnings per share. On average, equities research analysts expect that McDonald's Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald's Announces Dividend

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

Analysts Set New Price Targets

Several brokerages recently weighed in on MCD. Erste Group Bank cut shares of McDonald's from a "strong-buy" rating to a "hold" rating in a research report on Saturday, May 24th. BMO Capital Markets raised their price target on shares of McDonald's from $350.00 to $360.00 and gave the stock an "outperform" rating in a research note on Thursday. TD Securities restated a "hold" rating and set a $305.00 price target on shares of McDonald's in a research note on Thursday, June 5th. TD Cowen raised their price objective on shares of McDonald's from $305.00 to $315.00 and gave the stock a "hold" rating in a report on Wednesday, August 6th. Finally, Citigroup raised their price objective on shares of McDonald's from $364.00 to $365.00 and gave the stock a "buy" rating in a report on Wednesday, July 9th. Twelve investment 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. According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $325.35.

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.