Jacobs Levy Equity Management Inc. Invests $3.51 Million in McDonald's Corporation $MCD

Key Points

• Jacobs Levy Equity Management Inc. invested $3.51 million in McDonald's Corporation by acquiring 11,239 shares in the first quarter, indicating institutional interest in the fast-food giant.
• Other significant investors, such as Nuveen LLC and GAMMA Investing LLC, significantly increased their stakes in McDonald's, showing a trend of rising institutional ownership which now stands at 70.29%.
• McDonald's recently reported earnings that exceeded expectations, with a net revenue of $6.84 billion for the quarter, further solidifying its positive financial performance amid ongoing market interest.

Jacobs Levy Equity Management Inc. purchased a new stake in McDonald's Corporation (NYSE:MCD - Free Report) during the first quarter, according to its most recent disclosure with the SEC. The firm purchased 11,239 shares of the fast-food giant's stock, valued at approximately $3,511,000.

A number of other hedge funds and other institutional investors have also recently bought and sold shares of MCD. Nuveen LLC purchased a new position in McDonald's in the 1st quarter worth approximately $1,324,961,000. GAMMA Investing LLC lifted its stake in McDonald's by 39,039.7% in the 1st quarter. GAMMA Investing LLC now owns 3,497,919 shares of the fast-food giant's stock worth $1,092,645,000 after purchasing an additional 3,488,982 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in McDonald's by 16.8% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 9,341,460 shares of the fast-food giant's stock worth $2,917,993,000 after purchasing an additional 1,344,954 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in McDonald's by 19.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 4,982,825 shares of the fast-food giant's stock worth $1,556,485,000 after purchasing an additional 815,768 shares in the last quarter. Finally, Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in McDonald's in the 4th quarter worth approximately $211,824,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at McDonald's

In other news, EVP Desiree Ralls-Morrison sold 2,487 shares of the business's stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $310.00, for a total transaction of $770,970.00. Following the transaction, the executive vice president directly owned 8,754 shares in the company, valued at $2,713,740. The trade was a 22.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CMO Edith Morgan Flatley sold 1,000 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $315.00, for a total transaction of $315,000.00. Following the transaction, the chief marketing officer owned 6,858 shares in the company, valued at approximately $2,160,270. This trade 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 have sold 8,341 shares of company stock valued at $2,544,327. Company insiders own 0.25% of the company's stock.

McDonald's Stock Performance

NYSE MCD traded down $1.77 during trading on Monday, reaching $303.63. The company's stock had a trading volume of 608,574 shares, compared to its average volume of 3,521,564. The firm has a market cap of $216.67 billion, a price-to-earnings ratio of 26.01, a P/E/G ratio of 3.11 and a beta of 0.49. McDonald's Corporation has a twelve month low of $276.53 and a twelve month high of $326.32. The business's fifty day moving average price is $305.33 and its 200-day moving average price is $306.57.

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

McDonald's Dividend Announcement

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

Analysts Set New Price Targets

MCD has been the topic of a number of research reports. Piper Sandler raised their target price 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. Redburn Atlantic restated a "sell" rating and set a $260.00 price target (down previously from $319.00) on shares of McDonald's in a report on Tuesday, June 10th. Morgan Stanley raised their price target on shares of McDonald's from $324.00 to $326.00 and gave the stock an "equal weight" rating in a report on Monday, July 14th. Erste Group Bank downgraded shares of McDonald's from a "strong-buy" rating to a "hold" rating in a report on Saturday, May 24th. Finally, TD Cowen raised their price target on shares of McDonald's from $305.00 to $315.00 and gave the stock a "hold" rating in a report on Wednesday, August 6th. Eleven research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, McDonald's presently has an average rating of "Hold" and an average price target of $325.14.

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.