Cullinan Associates Inc. Cuts Position in McDonald's Corporation $MCD

Key Points

• Cullinan Associates Inc. has decreased its stake in McDonald's by 2.6%, now holding 66,707 shares worth approximately $19.49 million.
• McDonald's reported a Q2 EPS of $3.19, exceeding estimates, with revenue reaching $6.84 billion, up 5.4% year-over-year.
• Insiders have sold 7,402 shares in the last ninety days, indicating a possible shift in confidence, although McDonald's remains a strong stock with a current market capitalization of $214.59 billion.

Cullinan Associates Inc. cut its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 2.6% in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 66,707 shares of the fast-food giant's stock after selling 1,794 shares during the quarter. McDonald's accounts for 1.3% of Cullinan Associates Inc.'s investment portfolio, making the stock its 18th largest position. Cullinan Associates Inc.'s holdings in McDonald's were worth $19,490,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently made changes to their positions in the business. HFM Investment Advisors LLC purchased a new position in McDonald's in the 1st quarter valued at about $26,000. Nova Wealth Management Inc. purchased a new stake in McDonald's during the 1st quarter worth approximately $26,000. Abound Financial LLC purchased a new stake in McDonald's during the 1st quarter worth approximately $30,000. Redmont Wealth Advisors LLC acquired a new position in shares of McDonald's during the first quarter valued at approximately $31,000. Finally, Financial Gravity Asset Management Inc. purchased a new position in shares of McDonald's in the first quarter valued at approximately $31,000. Hedge funds and other institutional investors own 70.29% of the company's stock.

McDonald's Price Performance

Shares of MCD stock opened at $300.72 on Monday. The firm's 50-day moving average is $306.93 and its two-hundred day moving average is $306.15. McDonald's Corporation has a 12 month low of $276.53 and a 12 month high of $326.32. The company has a market capitalization of $214.59 billion, a PE ratio of 25.77, a price-to-earnings-growth ratio of 3.07 and a beta of 0.50.

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, beating the consensus estimate of $3.15 by $0.04. The business had revenue of $6.84 billion during the quarter, compared to analysts' expectations 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 revenue for the quarter was up 5.4% on a year-over-year basis. During the same quarter in the prior year, the company posted $2.97 EPS. Sell-side 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. Shareholders of record on Tuesday, September 2nd were given a $1.77 dividend. The ex-dividend date was Tuesday, September 2nd. This represents a $7.08 dividend on an annualized basis and a yield of 2.4%. McDonald's's payout ratio is currently 60.67%.

Insiders Place Their Bets

In related news, 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 value of $310,000.00. Following the sale, the executive vice president directly owned 99 shares in the company, valued at approximately $30,690. The trade was a 90.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, 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 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 $2,160,270. The trade was a 12.73% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 7,402 shares of company stock worth $2,273,407 over the last ninety days. Company insiders own 0.25% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently commented on MCD shares. Truist Financial boosted their price target on McDonald's from $356.00 to $360.00 and gave the stock a "buy" rating in a research report on Thursday, August 7th. Evercore ISI lifted 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. Citigroup upped their target price on shares of McDonald's from $373.00 to $381.00 and gave the stock a "buy" rating in a report on Wednesday, September 17th. Piper Sandler increased their target price on shares of McDonald's from $314.00 to $325.00 and gave the company a "neutral" rating in a research report on Thursday, August 7th. Finally, JPMorgan Chase & Co. raised their price target on shares of McDonald's from $305.00 to $310.00 and gave the stock an "overweight" rating in a research note on Thursday, August 7th. Twelve investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $325.86.

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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