Kingstone Capital Partners Texas LLC Takes Position in McDonald's Corporation $MCD

Key Points

• Kingstone Capital Partners Texas LLC acquired 124,904 shares of McDonald's Corporation, valued at approximately $35.8 million, as reported in their recent Form 13F filing.
• Several hedge funds, including IFM Investors and Perkins Coie Trust Co, have recently increased their stakes in McDonald's, indicating strong institutional interest in the company.
• McDonald's reported an earnings per share (EPS) of$3.19 for the last quarter, surpassing expectations and showing a year-over-year revenue increase of 5.4%.

Kingstone Capital Partners Texas LLC purchased a new position in McDonald's Corporation (NYSE:MCD - Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 124,904 shares of the fast-food giant's stock, valued at approximately $35,779,000.

Several other institutional investors and hedge funds have also added to or reduced their stakes in MCD. Mascagni Wealth Management Inc. bought a new position in McDonald's in the fourth quarter worth approximately $25,000. HFM Investment Advisors LLC bought a new position in shares of McDonald's in the first quarter valued at approximately $26,000. Nova Wealth Management Inc. bought a new position in shares of McDonald's in the first quarter valued at approximately $26,000. Pinney & Scofield Inc. bought a new position in shares of McDonald's in the fourth quarter valued at approximately $29,000. Finally, Abound Financial LLC bought a new position in shares of McDonald's in the first quarter valued at approximately $30,000. Institutional investors own 70.29% of the company's stock.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on MCD shares. Morgan Stanley raised their target price on McDonald's from $324.00 to $326.00 and gave the company an "equal weight" rating in a report on Monday, July 14th. Evercore ISI raised their target price on McDonald's from $350.00 to $360.00 and gave the company an "outperform" rating in a report on Friday, August 8th. BMO Capital Markets raised their target price on McDonald's from $350.00 to $360.00 and gave the company an "outperform" rating in a report on Thursday, September 4th. Barclays raised their target price on McDonald's from $355.00 to $360.00 and gave the company an "overweight" rating in a report on Thursday, August 7th. Finally, KeyCorp reiterated an "overweight" rating and set a $335.00 price target (up from $325.00) on shares of McDonald's in a report on Thursday, August 7th. Eleven 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.com, McDonald's has an average rating of "Hold" and an average target price of $325.86.

Insider Transactions at McDonald's

In other news, EVP Jonathan Banner sold 1,000 shares of McDonald's stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $310.00, for a total value of $310,000.00. Following the completion of the transaction, the executive vice president directly owned 99 shares in the company, valued at approximately $30,690. The trade was a 90.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,487 shares of McDonald's stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $310.00, for a total value of $770,970.00. Following the completion of the transaction, 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 ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 7,402 shares of company stock valued at $2,273,407. Corporate insiders own 0.25% of the company's stock.

McDonald's Price Performance

Shares of MCD traded up $1.09 during mid-day trading on Monday, hitting $303.47. The stock had a trading volume of 2,433,894 shares, compared to its average volume of 3,545,340. The firm has a market cap of $216.56 billion, a P/E ratio of 26.00, a PEG ratio of 3.08 and a beta of 0.50. The business has a fifty day moving average price of $306.06 and a 200-day moving average price of $306.41. McDonald's Corporation has a 52 week low of $276.53 and a 52 week high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last issued its earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.15 by $0.04. The firm had revenue of $6.84 billion for the quarter, compared to analyst estimates 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 revenue was up 5.4% on a year-over-year basis. During the same period in the previous year, the company posted $2.97 earnings per share. As a group, research analysts expect that McDonald's Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd were paid a $1.77 dividend. The ex-dividend date was Tuesday, September 2nd. This represents a $7.08 annualized dividend and a dividend yield of 2.3%. McDonald's's payout ratio is presently 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.