Columbia Asset Management Lowers Stock Holdings in McDonald's Corporation $MCD

Key Points

• Columbia Asset Management reduced its stake in McDonald's Corporation by 98.1% in the second quarter, selling 865,080 shares and holding just 16,510 shares valued at approximately $4.8 million at the end of the reporting period.
• McDonald's reported $3.19 EPS for the recent quarter, beating analysts' estimates, with a revenue of $6.84 billion, reflecting a 5.4% increase year-over-year.
• The company announced a quarterly dividend of $1.77 per share, representing an annualized dividend of $7.08 and a yield of 2.3%, with a payout ratio of 60.67%.

Columbia Asset Management reduced its position in McDonald's Corporation (NYSE:MCD - Free Report) by 98.1% in the 2nd quarter, according to its most recent filing with the SEC. The firm owned 16,510 shares of the fast-food giant's stock after selling 865,080 shares during the period. Columbia Asset Management's holdings in McDonald's were worth $4,824,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. HFM Investment Advisors LLC purchased a new stake in McDonald's in the 1st quarter worth approximately $26,000. Nova Wealth Management Inc. purchased a new stake in shares of McDonald's during the 1st quarter valued at $26,000. Abound Financial LLC purchased a new stake in shares of McDonald's during the 1st quarter valued at $30,000. Redmont Wealth Advisors LLC purchased a new stake in shares of McDonald's during the 1st quarter valued at $31,000. Finally, Financial Gravity Asset Management Inc. purchased a new stake in shares of McDonald's during the 1st quarter valued at $31,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald's Price Performance

Shares of MCD stock opened at $303.99 on Wednesday. McDonald's Corporation has a 12 month low of $276.53 and a 12 month high of $326.32. The firm has a market capitalization of $216.93 billion, a P/E ratio of 26.05, a P/E/G ratio of 3.09 and a beta of 0.50. The company's fifty day moving average price is $306.72 and its two-hundred day moving average price is $306.25.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.15 by $0.04. The business had revenue of $6.84 billion for the quarter, compared to analyst estimates of $6.68 billion. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. The company's revenue for the quarter was up 5.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $2.97 EPS. On average, sell-side analysts anticipate that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd were paid 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 60.67%.

Insider Activity at McDonald's

In other news, EVP Desiree Ralls-Morrison sold 2,487 shares of the company's stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $310.00, for a total value of $770,970.00. Following the sale, the executive vice president owned 8,754 shares in the company, valued at approximately $2,713,740. This represents a 22.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Jonathan Banner sold 1,000 shares of the company'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 completion of the sale, the executive vice president owned 99 shares in the company, valued at approximately $30,690. This trade represents a 90.99% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 7,402 shares of company stock worth $2,273,407. Company insiders own 0.25% of the company's stock.

Wall Street Analyst Weigh In

MCD has been the subject of several research reports. Barclays boosted their price objective on shares of McDonald's from $355.00 to $360.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. Guggenheim reissued a "neutral" rating on shares of McDonald's in a research note on Friday, August 8th. Argus cut shares of McDonald's from a "buy" rating to a "hold" rating in a research note on Friday, June 13th. Bank of America lowered their price objective on shares of McDonald's from $327.00 to $322.00 and set a "neutral" rating for the company in a research note on Friday, July 18th. Finally, Loop Capital cut shares of McDonald's from a "buy" rating to a "hold" rating and lowered their price objective for the company from $346.00 to $315.00 in a research note on Friday, June 6th. 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 MarketBeat, McDonald's presently has a consensus rating of "Hold" and an average price target of $325.86.

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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