Fred Alger Management LLC Grows Stock Position in McDonald's Corporation $MCD

Key Points

• Fred Alger Management LLC increased its stake in McDonald's Corporation by 116.8%, acquiring an additional 21,385 shares to own a total of 39,688 shares, valued at approximately $12.4 million.
• McDonald's recently reported quarterly earnings of $3.19 per share, surpassing analysts' expectations and marking a 5.4% increase in revenue compared to the same quarter last year.
• The company announced a quarterly dividend of $1.77 per share, representing an annualized payout of $7.08 and a dividend yield of 2.3%.

Fred Alger Management LLC boosted its position in McDonald's Corporation (NYSE:MCD - Free Report) by 116.8% during the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 39,688 shares of the fast-food giant's stock after acquiring an additional 21,385 shares during the quarter. Fred Alger Management LLC's holdings in McDonald's were worth $12,397,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in MCD. Nuveen LLC acquired a new stake in McDonald's in the first quarter valued at approximately $1,324,961,000. GAMMA Investing LLC raised its holdings in McDonald's by 39,039.7% in the first quarter. GAMMA Investing LLC now owns 3,497,919 shares of the fast-food giant's stock valued at $1,092,645,000 after acquiring an additional 3,488,982 shares in the last quarter. Price T Rowe Associates Inc. MD raised its holdings in McDonald's by 16.8% in the first 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 acquiring an additional 1,344,954 shares in the last quarter. Goldman Sachs Group Inc. raised its holdings in McDonald's by 19.6% in the first quarter. Goldman Sachs Group Inc. now owns 4,982,825 shares of the fast-food giant's stock valued at $1,556,485,000 after acquiring an additional 815,768 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in McDonald's during the fourth quarter worth approximately $211,824,000. Institutional investors and hedge funds own 70.29% of the company's stock.

Insider Activity at McDonald's

In other McDonald's news, CMO Edith Morgan Flatley sold 1,000 shares of the business's stock in a transaction on Tuesday, September 2nd. The shares were sold at an average price of $315.00, for a total transaction of $315,000.00. Following the sale, the chief marketing officer directly owned 6,858 shares in the company, valued at approximately $2,160,270. The trade was a 12.73% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,487 shares of the business's stock in a transaction on Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total transaction of $770,970.00. Following the sale, the executive vice president owned 8,754 shares in the company, valued at $2,713,740. The trade was a 22.12% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 8,341 shares of company stock valued at $2,544,327 over the last 90 days. Company insiders own 0.25% of the company's stock.

McDonald's Stock Up 0.8%

NYSE:MCD traded up $2.38 during midday trading on Thursday, reaching $308.32. The stock had a trading volume of 2,760,350 shares, compared to its average volume of 2,936,050. The firm has a fifty day simple moving average of $304.80 and a two-hundred day simple moving average of $306.60. McDonald's Corporation has a 12-month low of $276.53 and a 12-month high of $326.32. The stock has a market cap of $220.02 billion, a P/E ratio of 26.42, a P/E/G ratio of 3.12 and a beta of 0.50.

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

McDonald's Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be given a dividend of $1.77 per share. This represents a $7.08 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Tuesday, September 2nd. McDonald's's payout ratio is presently 60.67%.

Wall Street Analyst Weigh In

A number of analysts have weighed in on the stock. Morgan Stanley raised their price objective on shares of McDonald's from $324.00 to $326.00 and gave the stock an "equal weight" rating in a report on Monday, July 14th. Argus cut shares of McDonald's from a "buy" rating to a "hold" rating in a report on Friday, June 13th. Piper Sandler raised their price objective on shares of McDonald's from $314.00 to $325.00 and gave the stock a "neutral" rating in a report on Thursday, August 7th. Truist Financial raised their price objective on shares of McDonald's from $356.00 to $360.00 and gave the stock a "buy" rating in a report on Thursday, August 7th. Finally, Melius started coverage on shares of McDonald's in a report on Monday, July 14th. They set a "sell" rating and a $250.00 price objective on the stock. Eleven 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's stock. Based on data from MarketBeat, McDonald's presently has a consensus rating of "Hold" and a consensus target price of $325.14.

McDonald's 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.