Hilltop Holdings Inc. Reduces Stock Holdings in McDonald's Corporation $MCD

Key Points

• Hilltop Holdings Inc. cut its McDonald’s stake by 60.9% in the first quarter, selling 17,481 shares and leaving it with 11,209 shares valued at about $3.48 million.
• McDonald’s reported better-than-expected quarterly results, with EPS of $2.83 versus $2.74 expected and revenue of $6.52 billion, up 9.4% year over year.
• The company also declared a quarterly dividend of $1.86 per share, while analysts remain broadly positive overall with a consensus rating of “Moderate Buy” and an average price target of $334.32.

Hilltop Holdings Inc. lowered its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 60.9% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 11,209 shares of the fast-food giant's stock after selling 17,481 shares during the quarter. Hilltop Holdings Inc.'s holdings in McDonald's were worth $3,483,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently bought and sold shares of the stock. Brighton Jones LLC raised its position in McDonald's by 21.6% in the 4th quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock worth $2,692,000 after purchasing an additional 1,649 shares during the period. Revolve Wealth Partners LLC lifted its stake in McDonald's by 2.8% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant's stock worth $563,000 after purchasing an additional 52 shares during the last quarter. Sivia Capital Partners LLC boosted its position 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 valued at $589,000 after buying an additional 206 shares during the period. United Bank boosted its position in shares of McDonald's by 6.0% during 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. grew its stake in shares of McDonald's by 2.5% during 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 last quarter. Hedge funds and other institutional investors own 70.29% of the company's stock.

McDonald's Stock Up 0.6%

Shares of NYSE:MCD opened at $264.46 on Friday. McDonald's Corporation has a 52-week low of $260.96 and a 52-week high of $341.75. The stock has a market cap of $187.90 billion, a P/E ratio of 21.80, a price-to-earnings-growth ratio of 2.82 and a beta of 0.41. The business's 50 day moving average is $275.99 and its 200 day moving average is $298.87.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, beating the consensus estimate of $2.74 by $0.09. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The firm had revenue of $6.52 billion during the quarter, compared to the consensus estimate of $6.47 billion. During the same period in the previous year, the company posted $2.67 earnings per share. The firm's quarterly revenue was up 9.4% on a year-over-year basis. On average, sell-side analysts anticipate that McDonald's Corporation will post 12.86 EPS for the current fiscal year.

McDonald's Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Tuesday, September 1st will be paid a $1.86 dividend. This represents a $7.44 annualized dividend and a yield of 2.8%. The ex-dividend date is Tuesday, September 1st. McDonald's's dividend payout ratio (DPR) is 61.34%.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on MCD shares. Citigroup reduced their price target on McDonald's from $375.00 to $335.00 and set a "buy" rating on the stock in a report on Wednesday, July 15th. Evercore set a $320.00 price objective on McDonald's in a report on Thursday. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a research report on Friday, June 12th. Cfra upgraded McDonald's to a "buy" rating in a research note on Friday, May 8th. Finally, Barclays decreased their target price on McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research report on Friday, May 8th. Fifteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $334.32.

Trending Headlines about McDonald's

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

• Positive Sentiment: McDonald’s announced a quarterly dividend of $1.86 per share, reinforcing its reputation as a steady income stock and highlighting continued cash generation. McDONALD'S ANNOUNCES QUARTERLY CASH DIVIDEND
• Positive Sentiment: BTIG Research kept a buy rating on McDonald’s and said the stock still offers meaningful upside, even after cutting its price target to $350 from $370. Benzinga
• Positive Sentiment: Recent consumer-focused coverage around McValue packs, online availability, and a new dipping sauce suggests McDonald’s is still leaning on value-driven promotions and menu innovation to drive traffic. Here’s what’s new at McDonald’s this week
• Neutral Sentiment: Media coverage highlighting McDonald’s new McValue packs and online ordering is more promotional than financial, so it may help awareness but does not yet prove a material sales lift. McDonald's McValue packs now available online. Here's how to score one
• Neutral Sentiment: Analysts and media continue to frame McDonald’s as a defensive dividend name, but that alone is not enough to offset broader concerns about consumer spending. These 4 Dividend Stocks Are Money-Printing Machines
• Negative Sentiment: New research indicates restaurant customers remain highly price sensitive despite lower gas prices, which is a warning sign for traffic and margins at McDonald’s. McDonald's (MCD) Faces Stubborn Price Sensitive Traffic Despite Lower Gas Prices
• Negative Sentiment: McDonald’s recently hit a new 52-week low, and commentary around the stock suggests investors are waiting for the August 4 earnings report before buying the dip. McDonald’s Just Hit a New 52-Week Low. Don’t Buy the Dip Until After August 4.
• Negative Sentiment: StockTwits-style coverage also points to McDonald’s trading near 52-week lows amid broader concerns about weakening consumer demand. Why Did PEGA, ISRG, MCD Stocks Plunge To 52-Week Lows Today?

Insider Activity at McDonald's

In other news, insider Joseph M. Erlinger sold 5,252 shares of the company's stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the transaction, the insider directly owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 8,348 shares of company stock valued at $2,355,634. 0.26% of the stock is owned by insiders.

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.

Want to see what other hedge funds are holding MCD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for McDonald's Corporation (NYSE:MCD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.