InvesTrust Reduces Position in McDonald's Corporation $MCD

Key Points

• InvesTrust has reduced its stake in McDonald's Corporation by 49.7%, now holding only 13,924 shares, which constitutes approximately 1.6% of its portfolio.
• Insider sales included Joseph M. Erlinger and CMO Edith Morgan Flatley, who sold shares, leading to a decrease in their ownership by 9.19% and 12.73% respectively.
• Analysts have mixed ratings on McDonald's stock, with a consensus rating of "Hold" and a target price of $325.14, with expectations of continued revenue growth.

InvesTrust lessened its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 49.7% in the second quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 13,924 shares of the fast-food giant's stock after selling 13,740 shares during the quarter. McDonald's makes up approximately 1.6% of InvesTrust's portfolio, making the stock its 19th biggest position. InvesTrust's holdings in McDonald's were worth $4,068,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently made changes to their positions in MCD. Mascagni Wealth Management Inc. purchased a new stake in shares of McDonald's during the fourth quarter valued at approximately $25,000. HFM Investment Advisors LLC purchased a new stake in shares of McDonald's during the first quarter valued at approximately $26,000. Nova Wealth Management Inc. purchased a new stake in shares of McDonald's during the first quarter valued at approximately $26,000. Pinney & Scofield Inc. purchased a new stake in shares of McDonald's during the fourth quarter valued at approximately $29,000. Finally, Abound Financial LLC purchased a new stake in shares of McDonald's during the first quarter valued at approximately $30,000. Hedge funds and other institutional investors own 70.29% of the company's stock.

Insider Buying and Selling

In other news, insider Joseph M. Erlinger sold 939 shares of the 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 sale, the insider directly owned 9,283 shares of the company's stock, valued at approximately $2,780,165.67. This represents a 9.19% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CMO Edith Morgan Flatley sold 1,000 shares of the stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $315.00, for a total value of $315,000.00. Following the completion of the sale, the chief marketing officer directly owned 6,858 shares in the company, valued at approximately $2,160,270. This represents a 12.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 8,341 shares of company stock valued at $2,544,327. Insiders own 0.25% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on the company. KeyCorp reissued an "overweight" rating and set a $335.00 price objective (up previously from $325.00) on shares of McDonald's in a research note on Thursday, August 7th. Argus downgraded McDonald's from a "buy" rating to a "hold" rating in a report on Friday, June 13th. Bank of America decreased their target price on McDonald's from $327.00 to $322.00 and set a "neutral" rating for the company in a report on Friday, July 18th. Melius began coverage on McDonald's in a report on Monday, July 14th. They set a "sell" rating and a $250.00 target price for the company. Finally, The Goldman Sachs Group upgraded McDonald's from a "neutral" rating to a "buy" rating and set a $345.00 target price for the company in a report on Thursday, July 10th. Eleven analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus target price of $325.14.

McDonald's Trading Down 1.0%

MCD opened at $305.49 on Friday. The stock has a fifty day simple moving average of $305.33 and a two-hundred day simple moving average of $306.57. The company has a market cap of $218.00 billion, a price-to-earnings ratio of 26.18, a price-to-earnings-growth ratio of 3.14 and a beta of 0.50. McDonald's Corporation has a 12-month low of $276.53 and a 12-month high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings data on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share (EPS) for the quarter, topping 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 firm's quarterly revenue was up 5.4% compared to the same quarter last year. During the same quarter in the prior year, the company earned $2.97 earnings per share. On average, analysts predict that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Dividend Announcement

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

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.

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