Invesco Ltd. Raises Stock Holdings in McDonald's Corporation (NYSE:MCD)

Key Points

• Invesco Ltd. increased its stake in McDonald's Corporation by 9.0%, owning approximately 4.66 million shares valued at $1.46 billion as of the latest reporting period.
• Wall Street analysts have mixed assessments of McDonald's, with price targets ranging from $260.00 to $345.00 and a consensus rating of "Hold".
• McDonald's announced a quarterly dividend of $1.77 per share, reflecting an annualized yield of 2.3%, reaffirming its commitment to returning value to shareholders.

Invesco Ltd. increased its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 9.0% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 4,664,299 shares of the fast-food giant's stock after acquiring an additional 386,392 shares during the quarter. Invesco Ltd. owned approximately 0.65% of McDonald's worth $1,456,987,000 as of its most recent SEC filing.

A number of other hedge funds also recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its stake in McDonald's by 0.3% in 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 acquiring an additional 239,753 shares during the period. Capital Research Global Investors lifted its position in shares of McDonald's by 5.2% during the fourth quarter. Capital Research Global Investors now owns 10,652,445 shares of the fast-food giant's stock valued at $3,088,037,000 after buying an additional 531,070 shares during the last quarter. Northern Trust Corp lifted its position in shares of 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 valued at $2,570,511,000 after buying an additional 895,896 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in shares of McDonald's by 11.2% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 5,019,019 shares of the fast-food giant's stock valued at $1,454,963,000 after buying an additional 504,085 shares during the last quarter. Finally, Goldman Sachs Group Inc. lifted its position in shares of 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 valued at $1,556,485,000 after buying an additional 815,768 shares during the last quarter. 70.29% of the stock is owned by hedge funds and other institutional investors.

Insider Transactions at McDonald's

In other news, EVP Desiree Ralls-Morrison sold 2,487 shares of McDonald'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 owned 8,754 shares in the company, valued at $2,713,740. The trade was a 22.12% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CMO Edith Morgan Flatley sold 1,000 shares of McDonald's stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $300.00, for a total value of $300,000.00. Following the transaction, the chief marketing officer owned 8,858 shares in the company, valued at approximately $2,657,400. This represents a 10.14% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 7,280 shares of company stock worth $2,215,178 in the last quarter. Company insiders own 0.25% of the company's stock.

McDonald's Trading Down 1.0%

MCD traded down $3.09 on Tuesday, hitting $301.27. 90,917 shares of the company's stock were exchanged, compared to its average volume of 3,591,482. McDonald's Corporation has a fifty-two week low of $267.54 and a fifty-two week high of $326.32. The firm has a 50-day moving average price of $298.39 and a 200-day moving average price of $304.76. The stock has a market cap of $214.98 billion, a price-to-earnings ratio of 25.82, a P/E/G ratio of 3.12 and a beta of 0.52.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results 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 for the quarter, compared to analysts' expectations of $6.68 billion. During the same quarter in the previous year, the company posted $2.97 EPS. The firm's quarterly revenue was up 5.4% on a year-over-year basis. On average, equities analysts predict that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd will be issued a dividend of $1.77 per share. This represents a $7.08 annualized dividend and a dividend yield of 2.4%. The ex-dividend date is Tuesday, September 2nd. McDonald's's payout ratio is currently 60.67%.

Analyst Upgrades and Downgrades

Several research firms have weighed in on MCD. Guggenheim reissued a "neutral" rating on shares of McDonald's in a research report on Friday. Truist Financial boosted their target price on shares of McDonald's from $356.00 to $360.00 and gave the stock a "buy" rating in a research report on Thursday, August 7th. TD Cowen boosted 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 reissued an "outperform" rating and set a $350.00 target price (up previously from $345.00) on shares of McDonald's in a research report on Thursday, August 7th. Finally, KeyCorp reiterated an "overweight" rating and issued a $335.00 price target (up previously from $325.00) on shares of McDonald's in a report on Thursday. Two analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and thirteen have assigned a buy rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $326.87.

About McDonald's

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.