Harbour Investments Inc. Raises Stake in McDonald's Corporation $MCD

Key Points

• Harbour Investments Inc. increased its stake in McDonald's by 12.1%, acquiring an additional 2,088 shares, bringing their total holdings to 19,364 shares worth approximately $5.7 million.
• McDonald's recently announced a quarterly dividend of $1.77 per share, resulting in an annualized yield of 2.3% with a payout ratio of 60.67%.
• Analysts generally have a positive outlook on McDonald's, with several raising their target price; the average consensus target is $324.73.

Harbour Investments Inc. lifted its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 12.1% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 19,364 shares of the fast-food giant's stock after buying an additional 2,088 shares during the quarter. Harbour Investments Inc.'s holdings in McDonald's were worth $5,657,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. Vanguard Group Inc. grew its holdings in shares of McDonald's by 0.3% during the first quarter. Vanguard Group Inc. now owns 70,409,095 shares of the fast-food giant's stock worth $21,993,689,000 after buying an additional 239,753 shares in the last quarter. Price T Rowe Associates Inc. MD grew its holdings in shares of McDonald's by 16.8% during the first quarter. Price T Rowe Associates Inc. MD now owns 9,341,460 shares of the fast-food giant's stock worth $2,917,993,000 after buying an additional 1,344,954 shares in the last quarter. Northern Trust Corp grew its holdings in shares of McDonald's by 1.1% during the first quarter. Northern Trust Corp now owns 8,965,159 shares of the fast-food giant's stock worth $2,800,447,000 after buying an additional 97,966 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in shares of McDonald's by 2.5% in the first 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 worth $1,606,354,000 after acquiring an additional 123,454 shares during the last quarter. Finally, Goldman Sachs Group Inc. boosted its position in shares of 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 worth $1,556,485,000 after acquiring an additional 815,768 shares during the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In other news, EVP Jonathan Banner sold 1,000 shares of the business's stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $310.00, for a total transaction of $310,000.00. Following the transaction, the executive vice president directly owned 99 shares of the company's stock, valued at approximately $30,690. The trade was a 90.99% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 transaction, the executive vice president directly owned 8,754 shares in the company, valued at approximately $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. In the last three months, insiders sold 6,402 shares of company stock valued at $1,973,407. 0.25% of the stock is currently owned by company insiders.

McDonald's Stock Up 0.2%

Shares of MCD stock opened at $305.04 on Thursday. The stock has a market cap of $217.68 billion, a price-to-earnings ratio of 26.14, a price-to-earnings-growth ratio of 3.21 and a beta of 0.50. McDonald's Corporation has a fifty-two week low of $276.53 and a fifty-two week high of $326.32. The firm's 50 day moving average price is $306.29 and its two-hundred day moving average price is $305.63.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results 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 analysts' expectations 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 revenue was up 5.4% compared to the same quarter last year. During the same period in the previous year, the company posted $2.97 earnings per share. On average, equities analysts forecast that McDonald's Corporation will post 12.25 EPS for the current fiscal year.

McDonald's Dividend Announcement

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

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. TD Cowen raised their target price on shares of McDonald's from $305.00 to $315.00 and gave the stock a "hold" rating in a research report on Wednesday, August 6th. BMO Capital Markets raised their target price on shares of McDonald's from $350.00 to $360.00 and gave the stock an "outperform" rating in a research report on Thursday, September 4th. Morgan Stanley raised their target price on shares of McDonald's from $324.00 to $326.00 and gave the stock an "equal weight" rating in a research report on Monday, July 14th. Evercore ISI raised their target price on shares of McDonald's from $350.00 to $360.00 and gave the stock an "outperform" rating in a research report on Friday, August 8th. Finally, KeyCorp reissued an "overweight" rating and issued a $335.00 target price (up from $325.00) on shares of McDonald's in a research report on Thursday, August 7th. Eleven investment analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $324.73.

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.

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