IMS Capital Management Makes New Investment in McDonald's Corporation $MCD

Key Points

• IMS Capital Management has purchased 2,825 shares of McDonald's Corporation (MCD), valued at approximately $825,000, during the second quarter of the year.
• In recent analyst ratings, JPMorgan Chase increased its target price for McDonald's shares from $305 to $310, while KeyCorp raised their target from $325 to $335, indicating a generally positive outlook.
• McDonald's reported strong quarterly earnings with $3.19 earnings per share and revenue of $6.84 billion, surpassing analyst estimates and showing a year-over-year growth of 5.4%.

IMS Capital Management acquired a new position in shares of McDonald's Corporation (NYSE:MCD - Free Report) during the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor acquired 2,825 shares of the fast-food giant's stock, valued at approximately $825,000.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Nuveen LLC acquired a new stake in McDonald's in the 1st quarter valued at about $1,324,961,000. GAMMA Investing LLC increased its stake in shares of McDonald's by 39,039.7% during the first quarter. GAMMA Investing LLC now owns 3,497,919 shares of the fast-food giant's stock worth $1,092,645,000 after buying an additional 3,488,982 shares during the period. 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, T. Rowe Price Investment Management Inc. lifted its position in shares of McDonald's by 732.6% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 650,544 shares of the fast-food giant's stock worth $203,211,000 after purchasing an additional 572,408 shares during the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Insider Transactions at McDonald's

In other news, EVP Jonathan Banner sold 1,000 shares of McDonald's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $310.00, for a total value of $310,000.00. Following the completion of 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 position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider Joseph M. Erlinger sold 939 shares of the company's stock in a transaction on Wednesday, July 23rd. The stock was sold at an average price of $299.49, for a total value of $281,221.11. Following the transaction, the insider owned 9,283 shares of the company's stock, valued at approximately $2,780,165.67. The trade was a 9.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 7,402 shares of company stock valued at $2,273,407. 0.25% of the stock is currently owned by insiders.

Analyst Ratings Changes

A number of research analysts recently commented on the stock. JPMorgan Chase & Co. increased their target price on shares of McDonald's from $305.00 to $310.00 and gave the company an "overweight" rating in a research report on Thursday, August 7th. Stifel Nicolaus boosted their price target on shares of McDonald's from $300.00 to $315.00 and gave the stock a "hold" rating in a research note on Friday, August 22nd. Redburn Atlantic reissued 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. KeyCorp reiterated an "overweight" rating and issued a $335.00 price objective (up previously from $325.00) on shares of McDonald's in a research report on Thursday, August 7th. Finally, Piper Sandler boosted their target price on shares of McDonald's from $314.00 to $325.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Eleven research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $325.86.

McDonald's Stock Performance

Shares of MCD stock opened at $303.12 on Wednesday. The firm has a market capitalization of $216.31 billion, a price-to-earnings ratio of 25.97, a price-to-earnings-growth ratio of 3.09 and a beta of 0.50. The company has a 50 day moving average price of $306.16 and a 200 day moving average price of $306.27. McDonald's Corporation has a one year low of $276.53 and a one year high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.15 by $0.04. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. The company had revenue of $6.84 billion during the quarter, compared to the consensus estimate of $6.68 billion. During the same period in the previous year, the firm earned $2.97 earnings per share. McDonald's's revenue for the quarter was up 5.4% on a year-over-year basis. As a group, equities analysts forecast that McDonald's Corporation will post 12.25 EPS for the current fiscal year.

McDonald's Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd were issued a $1.77 dividend. This represents a $7.08 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend was Tuesday, September 2nd. McDonald's's payout ratio is currently 60.67%.

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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