First National Bank of Mount Dora Trust Investment Services Sells 4,343 Shares of McDonald's Corporation $MCD

Key Points

• First National Bank of Mount Dora Trust Investment Services cut its McDonald’s stake by 18.1%, selling 4,343 shares and retaining 19,700 shares valued at approximately $6.1 million. Institutional investors collectively own 70.29% of the company.
• McDonald’s shares opened at $270.83, near the lower end of their 12-month range, amid technical weakness and concerns about softer sales and earnings. Analysts nevertheless maintain a consensus “Moderate Buy” rating with an average price target of $331.92.
• The company declared a quarterly dividend of $1.86 per share, equivalent to $7.44 annually and a 2.7% yield, while investors await second-quarter results and updates on value offerings, same-store sales, margins and consumer demand.

First National Bank of Mount Dora Trust Investment Services lessened its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 18.1% during the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 19,700 shares of the fast-food giant's stock after selling 4,343 shares during the quarter. McDonald's comprises about 1.3% of First National Bank of Mount Dora Trust Investment Services' investment portfolio, making the stock its 28th largest position. First National Bank of Mount Dora Trust Investment Services' holdings in McDonald's were worth $6,123,000 at the end of the most recent reporting period.

Other hedge funds have also added to or reduced their stakes in the company. Brighton Jones LLC boosted its stake in shares of McDonald's by 21.6% in the 4th quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock valued at $2,692,000 after purchasing an additional 1,649 shares during the last quarter. Revolve Wealth Partners LLC raised its stake in shares of McDonald's by 2.8% during the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant's stock worth $563,000 after buying an additional 52 shares during the last quarter. Sivia Capital Partners LLC raised its stake in shares of McDonald's by 11.4% during the second quarter. Sivia Capital Partners LLC now owns 2,017 shares of the fast-food giant's stock worth $589,000 after buying an additional 206 shares during the last quarter. United Bank lifted its holdings in McDonald's by 6.0% in the second quarter. United Bank now owns 8,102 shares of the fast-food giant's stock valued at $2,367,000 after buying an additional 459 shares during the period. Finally, Schnieders Capital Management LLC. lifted its holdings in McDonald's by 2.5% in the second quarter. Schnieders Capital Management LLC. now owns 12,938 shares of the fast-food giant's stock valued at $3,780,000 after buying an additional 312 shares during the period. Institutional investors own 70.29% of the company's stock.

Key McDonald's News

Here are the key news stories impacting McDonald's this week:

• Positive Sentiment: Unusually heavy call-option activity suggests some traders are positioning for upside. Investors purchased 32,245 calls, approximately 45% above the average volume of 22,241 calls.
• Positive Sentiment: Technical analyst Jay Woods said McDonald’s chart is beginning to form a potential buy signal, which could attract bargain hunters after the stock’s recent correction. CNBC article
• Positive Sentiment: McDonald’s continues to appeal to income-focused investors after declaring a quarterly dividend of $1.86 per share. Analysts also maintain a consensus “moderate buy” recommendation. Dividend strength and softer sales expectations Consensus recommendation
• Neutral Sentiment: Investors are focused on value meals, menu innovation, digital promotions, same-store sales, margins and management’s outlook when McDonald’s reports second-quarter results. Q2 earnings factors
• Negative Sentiment: Mizuho lowered its price target from $300 to $290 and assigned a “neutral” rating, signaling limited conviction despite implied upside from current levels.
• Negative Sentiment: The stock has remained below its 200-week moving average for the longest stretch since 2003, highlighting persistent technical weakness. Barchart technical analysis
• Negative Sentiment: Analysts expect softer sales and weaker earnings, particularly as lower-income consumers remain pressured. That caution could limit gains before the earnings release. McDonald’s stock ahead of August 4 earnings

Insider Activity

In other McDonald's news, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the sale, the insider directly owned 7,734 shares in the company, valued at $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 8,348 shares of company stock worth $2,355,634. Corporate insiders own 0.26% of the company's stock.

McDonald's Stock Performance

MCD opened at $270.83 on Monday. The firm's fifty day moving average is $274.88 and its two-hundred day moving average is $297.63. The firm has a market cap of $192.43 billion, a PE ratio of 22.33, a price-to-earnings-growth ratio of 2.91 and a beta of 0.41. McDonald's Corporation has a twelve month low of $260.96 and a twelve month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping analysts' consensus estimates of $2.74 by $0.09. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The company had revenue of $6.52 billion for the quarter, compared to analysts' expectations of $6.47 billion. During the same period last year, the firm posted $2.67 earnings per share. The business's quarterly revenue was up 9.4% compared to the same quarter last year. Equities analysts forecast that McDonald's Corporation will post 12.86 EPS for the current fiscal year.

McDonald's Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be issued a dividend of $1.86 per share. The ex-dividend date is Tuesday, September 1st. This represents a $7.44 annualized dividend and a yield of 2.7%. McDonald's's payout ratio is currently 61.34%.

Analysts Set New Price Targets

A number of analysts have commented on MCD shares. BTIG Research lowered their target price on shares of McDonald's from $370.00 to $350.00 and set a "buy" rating for the company in a report on Friday, July 24th. Rothschild & Co Redburn raised McDonald's from a "sell" rating to a "neutral" rating and increased their price target for the company from $260.00 to $306.00 in a research note on Thursday, April 23rd. Robert W. Baird set a $305.00 price target on McDonald's in a research report on Thursday, May 7th. Deutsche Bank Aktiengesellschaft set a $325.00 price objective on McDonald's in a research note on Thursday, July 9th. Finally, Morgan Stanley dropped their price objective on McDonald's from $331.00 to $322.00 and set an "equal weight" rating for the company in a report on Wednesday, July 15th. Fifteen equities research analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $331.92.

About McDonald's

McDonald's Corporation NYSE: MCD is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald's serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand's national and international expansion.

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