Confluence Investment Management LLC Has $22.85 Million Stake in McDonald's Corporation $MCD

Key Points

• Confluence Investment Management LLC reduced its stake in McDonald's Corporation by 2.5%, now owning 78,202 shares worth approximately $22.85 million.
• Despite some hedge funds increasing their holdings, insiders collectively sold over 8,341 shares of McDonald's stock in the last quarter, indicating some profit-taking.
• McDonald's announced a quarterly dividend of $1.77 per share, which results in an annualized dividend yield of 2.3% and a payout ratio of 60.67%.

Confluence Investment Management LLC decreased its position in McDonald's Corporation (NYSE:MCD - Free Report) by 2.5% in the second quarter, according to its most recent 13F filing with the SEC. The firm owned 78,202 shares of the fast-food giant's stock after selling 2,012 shares during the period. Confluence Investment Management LLC's holdings in McDonald's were worth $22,848,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Vanguard Group Inc. boosted its stake in McDonald's by 0.3% in the 1st quarter. Vanguard Group Inc. now owns 70,409,095 shares of the fast-food giant's stock worth $21,993,689,000 after purchasing an additional 239,753 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in shares of McDonald's by 16.8% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 9,341,460 shares of the fast-food giant's stock valued at $2,917,993,000 after buying an additional 1,344,954 shares during the period. Northern Trust Corp boosted its stake in shares of McDonald's by 1.1% during the 1st quarter. Northern Trust Corp now owns 8,965,159 shares of the fast-food giant's stock valued at $2,800,447,000 after buying an additional 97,966 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of McDonald's by 2.5% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 5,142,473 shares of the fast-food giant's stock valued at $1,606,354,000 after buying an additional 123,454 shares during the period. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of McDonald's by 11.2% during the 4th quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,019,019 shares of the fast-food giant's stock valued at $1,454,963,000 after buying an additional 504,085 shares during the period. Institutional investors and hedge funds own 70.29% of the company's stock.

Insider Activity

In related news, CMO Edith Morgan Flatley sold 1,000 shares of McDonald's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $315.00, for a total value of $315,000.00. Following the transaction, the chief marketing officer owned 6,858 shares in the company, valued at $2,160,270. This trade represents a 12.73% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, EVP Desiree Ralls-Morrison sold 2,487 shares of the business's stock in a transaction dated Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total transaction of $770,970.00. Following the transaction, the executive vice president owned 8,754 shares in the company, valued at approximately $2,713,740. The trade was a 22.12% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 8,341 shares of company stock worth $2,544,327. Insiders own 0.25% of the company's stock.

McDonald's Trading Down 1.0%

McDonald's stock opened at $305.49 on Friday. The company has a market capitalization of $218.00 billion, a P/E ratio of 26.18, a P/E/G ratio of 3.14 and a beta of 0.50. McDonald's Corporation has a 1-year low of $276.53 and a 1-year high of $326.32. The firm's fifty day simple moving average is $305.33 and its 200-day simple moving average is $306.57.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 EPS for the quarter, topping the consensus estimate of $3.15 by $0.04. The firm 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%. The business's quarterly revenue was up 5.4% on a year-over-year basis. During the same quarter last year, the firm posted $2.97 EPS. On average, equities research analysts predict that McDonald's Corporation will post 12.25 earnings per share for the current year.

McDonald's Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be issued a $1.77 dividend. This represents a $7.08 annualized dividend and a yield of 2.3%. The ex-dividend date is Tuesday, September 2nd. McDonald's's dividend payout ratio (DPR) is 60.67%.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Citigroup lifted their target price on shares of McDonald's from $364.00 to $365.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Piper Sandler lifted their target price on shares of McDonald's from $314.00 to $325.00 and gave the company a "neutral" rating in a research note on Thursday, August 7th. Truist Financial lifted their target price on shares of McDonald's from $356.00 to $360.00 and gave the company a "buy" rating in a research note on Thursday, August 7th. BMO Capital Markets lifted their target price on shares of McDonald's from $350.00 to $360.00 and gave the company an "outperform" rating in a research note on Thursday, September 4th. Finally, Melius began coverage on shares of McDonald's in a research note on Monday, July 14th. They set a "sell" rating and a $250.00 target price for the company. Eleven investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $325.14.

McDonald's Company Profile

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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