Federated Hermes Inc. Cuts Position in McDonald's Corporation (NYSE:MCD)

Key Points

• Federated Hermes Inc. reduced its ownership in McDonald's by 4.5%, selling 3,606 shares, which leaves them with 77,018 shares valued at approximately $24 million.
• McDonald's reported a quarterly earnings per share of $2.67, matching expectations, but revenue decreased by 3.5% year-over-year.
• McDonald's will pay a quarterly dividend of $1.77 on September 16th, representing an annualized yield of 2.4%.

Federated Hermes Inc. trimmed its position in McDonald's Corporation (NYSE:MCD - Free Report) by 4.5% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 77,018 shares of the fast-food giant's stock after selling 3,606 shares during the quarter. Federated Hermes Inc.'s holdings in McDonald's were worth $24,058,000 at the end of the most recent quarter.

Other large investors also recently modified their holdings of the company. Geneos Wealth Management Inc. raised its holdings in shares of McDonald's by 16.0% during the 1st quarter. Geneos Wealth Management Inc. now owns 14,585 shares of the fast-food giant's stock valued at $4,556,000 after buying an additional 2,013 shares during the period. N.E.W. Advisory Services LLC increased its holdings in McDonald's by 13.5% during the 1st quarter. N.E.W. Advisory Services LLC now owns 5,466 shares of the fast-food giant's stock worth $1,707,000 after purchasing an additional 652 shares during the last quarter. Meeder Advisory Services Inc. increased its holdings in McDonald's by 8.6% during the 1st quarter. Meeder Advisory Services Inc. now owns 19,577 shares of the fast-food giant's stock worth $6,115,000 after purchasing an additional 1,555 shares during the last quarter. Clarendon Private LLC increased its holdings in McDonald's by 7.3% during the 1st quarter. Clarendon Private LLC now owns 3,417 shares of the fast-food giant's stock worth $1,067,000 after purchasing an additional 232 shares during the last quarter. Finally, JSF Financial LLC purchased a new stake in McDonald's during the 1st quarter worth approximately $210,000. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

McDonald's Price Performance

NYSE MCD traded up $2.81 during trading on Friday, reaching $302.88. 3,324,992 shares of the company's stock were exchanged, compared to its average volume of 3,321,008. The business has a 50 day moving average price of $299.44 and a 200-day moving average price of $303.66. The stock has a market capitalization of $216.57 billion, a P/E ratio of 26.73, a PEG ratio of 3.17 and a beta of 0.52. McDonald's Corporation has a fifty-two week low of $265.33 and a fifty-two week high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings data on Thursday, May 1st. The fast-food giant reported $2.67 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $2.67. McDonald's had a negative return on equity of 195.27% and a net margin of 31.75%. The company had revenue of $5.96 billion during the quarter, compared to analysts' expectations of $6.17 billion. During the same quarter in the previous year, the company posted $2.70 earnings per share. The business's revenue was down 3.5% on a year-over-year basis. On average, analysts forecast that McDonald's Corporation will post 12.25 earnings per share for the current year.

McDonald's Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be paid a dividend of $1.77 per share. The ex-dividend date is Tuesday, September 2nd. This represents a $7.08 annualized dividend and a yield of 2.3%. McDonald's's dividend payout ratio is presently 62.49%.

Analyst Upgrades and Downgrades

MCD has been the subject of a number of research analyst reports. Morgan Stanley boosted their price target on McDonald's from $324.00 to $326.00 and gave the company an "equal weight" rating in a report on Monday, July 14th. Argus downgraded McDonald's from a "buy" rating to a "hold" rating in a report on Friday, June 13th. KeyCorp lowered their price target on McDonald's from $340.00 to $325.00 and set an "overweight" rating for the company in a report on Monday, June 30th. Redburn Atlantic reiterated a "sell" rating and issued a $260.00 price target (down from $319.00) on shares of McDonald's in a report on Tuesday, June 10th. Finally, Citigroup boosted their price target on McDonald's from $364.00 to $365.00 and gave the company a "buy" rating in a report on Wednesday, July 9th. Two analysts have rated the stock with a sell rating, thirteen have given a hold rating and thirteen have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and an average price target of $323.39.

Insider Buying and Selling at McDonald's

In other McDonald's news, insider Joseph M. Erlinger sold 939 shares of the stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $299.49, for a total transaction of $281,221.11. Following the completion of the sale, the insider directly owned 9,283 shares in the company, 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 accessible through this link. Also, CMO Edith Morgan Flatley sold 1,000 shares of the stock in a transaction dated Thursday, July 10th. The stock was sold at an average price of $300.00, for a total value of $300,000.00. Following the sale, the chief marketing officer owned 8,858 shares of the company's stock, valued at approximately $2,657,400. The trade was a 10.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 3,817 shares of company stock valued at $1,147,992 over the last 90 days. Corporate insiders own 0.25% of the company's stock.

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.