McDonald's Corporation (NYSE:MCD) Position Cut by Independent Advisor Alliance

Key Points

• Independent Advisor Alliance has reduced its stake in McDonald's Corporation by 11.6%, resulting in ownership of 65,586 shares valued at approximately $20.5 million.
• Recent earnings reports show McDonald's exceeding analysts' expectations with $3.19 earnings per share for the last quarter, alongside a revenue increase of 5.4% year-over-year.
• McDonald's declared a quarterly dividend of $1.77 per share, representing a 2.3% yield with a payout ratio of 60.67%.

Independent Advisor Alliance lowered its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 11.6% during the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 65,586 shares of the fast-food giant's stock after selling 8,646 shares during the period. McDonald's makes up approximately 0.7% of Independent Advisor Alliance's portfolio, making the stock its 25th biggest holding. Independent Advisor Alliance's holdings in McDonald's were worth $20,487,000 at the end of the most recent reporting period.

A number of other large investors also recently bought and sold shares of the stock. Nuveen LLC purchased a new stake in McDonald's during the first quarter worth approximately $1,324,961,000. GAMMA Investing LLC grew its stake in 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. Castlekeep Investment Advisors LLC purchased a new stake in McDonald's during the fourth quarter worth approximately $350,935,000. Northern Trust Corp grew its stake in McDonald's by 11.2% during the fourth quarter. Northern Trust Corp now owns 8,867,193 shares of the fast-food giant's stock worth $2,570,511,000 after buying an additional 895,896 shares during the period. Finally, Goldman Sachs Group Inc. grew its stake in McDonald's by 19.6% during 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 buying an additional 815,768 shares during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Insider Buying and Selling

In related news, EVP Desiree Ralls-Morrison sold 2,487 shares of the firm's stock in a transaction that occurred on Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total value of $770,970.00. Following the sale, the executive vice president owned 8,754 shares of the company's stock, valued at approximately $2,713,740. This trade represents a 22.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CMO Edith Morgan Flatley sold 976 shares of the firm's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $303.50, for a total value of $296,216.00. Following the completion of the sale, the chief marketing officer directly owned 7,882 shares in the company, valued at approximately $2,392,187. This trade represents a 11.02% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 7,280 shares of company stock valued at $2,215,178. Insiders own 0.25% of the company's stock.

Analysts Set New Price Targets

Several equities research analysts have issued reports on the stock. Piper Sandler boosted their price objective on shares of McDonald's from $314.00 to $325.00 and gave the stock a "neutral" rating in a research note on Thursday, August 7th. Citigroup lifted their price objective on shares of McDonald's from $364.00 to $365.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. BMO Capital Markets reiterated an "outperform" rating and set a $350.00 price objective (up previously from $345.00) on shares of McDonald's in a research note on Thursday, August 7th. Barclays lifted their price objective on shares of McDonald's from $355.00 to $360.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. Finally, Bank of America dropped their price objective on shares of McDonald's from $327.00 to $322.00 and set a "neutral" rating on the stock in a research note on Friday, July 18th. Two analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and thirteen have issued a buy rating to the company's stock. Based on data from MarketBeat, McDonald's presently has an average rating of "Hold" and a consensus price target of $326.87.

McDonald's Stock Performance

Shares of NYSE MCD traded down $2.73 during trading on Tuesday, reaching $301.63. The stock had a trading volume of 3,438,206 shares, compared to its average volume of 3,433,888. McDonald's Corporation has a one year low of $267.54 and a one year high of $326.32. The stock has a market cap of $215.24 billion, a PE ratio of 25.85, a P/E/G ratio of 3.11 and a beta of 0.52. The firm's 50 day moving average price is $298.17 and its two-hundred day moving average price is $304.74.

McDonald's (NYSE:MCD - Get Free Report) last issued 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 business had revenue of $6.84 billion during the quarter, compared to the consensus estimate of $6.68 billion. McDonald's had a negative return on equity of 225.52% and a net margin of 32.21%. The business's quarterly revenue was up 5.4% on a year-over-year basis. During the same period in the previous year, the business earned $2.97 EPS. On average, research analysts expect that McDonald's Corporation will post 12.25 earnings per share for the current year.

McDonald's Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be issued a $1.77 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $7.08 annualized dividend and a dividend yield of 2.3%. McDonald's's dividend payout ratio (DPR) is 60.67%.

McDonald's Company 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.