Kercheville Advisors LLC Sells 1,700 Shares of McDonald's Corporation $MCD

Key Points

• Kercheville Advisors LLC reduced its stake in McDonald's by 24.6%, selling 1,700 shares to hold a total of 5,198 shares, valued at approximately $1,519,000.
• McDonald's stock is currently rated as a Hold by most analysts, with an average target price of $325.86, following recent upgrades by JPMorgan and KeyCorp.
• Insider transactions showed a significant sell-off, with executives like EVP Desiree Ralls-Morrison and Joseph M. Erlinger reducing their holdings, reflecting market movements and internal confidence.

Kercheville Advisors LLC lessened its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 24.6% in the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 5,198 shares of the fast-food giant's stock after selling 1,700 shares during the period. Kercheville Advisors LLC's holdings in McDonald's were worth $1,519,000 at the end of the most recent quarter.

Other large investors have also added to or reduced their stakes in the company. HFM Investment Advisors LLC bought a new stake in shares of McDonald's during the 1st quarter valued at $26,000. Nova Wealth Management Inc. purchased a new position in shares of McDonald's during the 1st quarter valued at $26,000. Abound Financial LLC purchased a new position in shares of McDonald's during the 1st quarter valued at $30,000. Redmont Wealth Advisors LLC purchased a new position in shares of McDonald's during the 1st quarter valued at $31,000. Finally, Financial Gravity Asset Management Inc. purchased a new position in shares of McDonald's during the 1st quarter valued at $31,000. Institutional investors own 70.29% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Guggenheim restated a "neutral" rating on shares of McDonald's in a research note on Friday, August 8th. JPMorgan Chase & Co. lifted their target price on shares of McDonald's from $305.00 to $310.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. Melius started coverage on shares of McDonald's in a report on Monday, July 14th. They set a "sell" rating and a $250.00 price objective for the company. Weiss Ratings reissued a "buy (b)" rating on shares of McDonald's in a report on Saturday, September 27th. Finally, KeyCorp reissued an "overweight" rating and set a $335.00 price objective (up previously from $325.00) on shares of McDonald's in a report on Thursday, August 7th. Twelve analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the company's stock. According to MarketBeat, McDonald's presently has an average rating of "Hold" and an average target price of $325.86.

Insider Activity

In related news, EVP Desiree Ralls-Morrison sold 2,487 shares of the company'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 approximately $2,713,740. This 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, insider Joseph M. Erlinger sold 939 shares of the company's stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total transaction of $281,221.11. Following the transaction, the insider owned 9,283 shares in the company, valued at $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. Over the last 90 days, insiders have sold 7,402 shares of company stock valued at $2,273,407. 0.25% of the stock is currently owned by company insiders.

McDonald's Trading Up 0.3%

Shares of NYSE MCD opened at $300.72 on Friday. The stock has a market capitalization of $214.59 billion, a price-to-earnings ratio of 25.77, a P/E/G ratio of 3.07 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. The firm's 50-day moving average price is $306.93 and its 200-day moving average price is $306.16.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 EPS for the quarter, beating the consensus estimate of $3.15 by $0.04. The company had revenue of $6.84 billion for the quarter, compared to the consensus estimate of $6.68 billion. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. The firm's revenue was up 5.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.97 EPS. On average, equities analysts predict that McDonald's Corporation will post 12.25 EPS for the current fiscal year.

McDonald's Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd were issued a dividend of $1.77 per share. This represents a $7.08 annualized dividend and a yield of 2.4%. The ex-dividend date was Tuesday, September 2nd. McDonald's's dividend payout ratio is presently 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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