Knightsbridge Asset Management LLC Acquires Shares of 926 McDonald's Corporation $MCD

Key Points

• Knightsbridge Asset Management LLC acquired a new stake in McDonald's Corporation, purchasing 926 shares valued at approximately $289,000 during the first quarter.
• Analysts have mixed views on the stock, with Argus downgrading it to a "hold" and Goldman Sachs raising its rating to "buy" with a price target of $345.00.
• McDonald's recently declared a quarterly dividend of $1.77, with a yield of 2.3%, highlighting its ongoing commitment to returning value to shareholders.

Knightsbridge Asset Management LLC bought a new stake in McDonald's Corporation (NYSE:MCD - Free Report) in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm bought 926 shares of the fast-food giant's stock, valued at approximately $289,000.

A number of other hedge funds have also recently made changes to their positions in MCD. Mascagni Wealth Management Inc. bought a new position in McDonald's in the 4th quarter valued at approximately $25,000. Abound Financial LLC acquired a new position in McDonald's in the 1st quarter valued at approximately $30,000. Pinney & Scofield Inc. bought a new position in shares of McDonald's during the fourth quarter valued at $29,000. Redmont Wealth Advisors LLC acquired a new position in shares of McDonald's during the first quarter worth $31,000. Finally, Financial Gravity Asset Management Inc. acquired a new position in shares of McDonald's during the first quarter worth $31,000. 70.29% of the stock is owned by institutional investors and hedge funds.

Insider Activity at McDonald's

In other news, CMO Edith Morgan Flatley sold 1,000 shares of the company's stock in a transaction dated Tuesday, September 2nd. The shares were 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 represents a 12.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Jonathan Banner sold 1,000 shares of the firm's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $310.00, for a total value of $310,000.00. Following the completion of the sale, the executive vice president owned 99 shares of the company's stock, valued at approximately $30,690. This represents a 90.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 8,341 shares of company stock valued at $2,544,327. 0.25% of the stock is currently owned by company insiders.

McDonald's Trading Down 0.5%

MCD stock traded down $1.65 during mid-day trading on Friday, reaching $306.78. The company's stock had a trading volume of 727,878 shares, compared to its average volume of 3,531,191. McDonald's Corporation has a 12 month low of $276.53 and a 12 month high of $326.32. The business's 50 day moving average price is $305.09 and its 200 day moving average price is $306.61. The company has a market cap of $218.92 billion, a price-to-earnings ratio of 26.29, a price-to-earnings-growth ratio of 3.12 and a beta of 0.50.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results 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 firm had revenue of $6.84 billion for the quarter, compared to analysts' expectations of $6.68 billion. McDonald's had a negative return on equity of 225.52% and a net margin of 32.21%.The company's revenue for the quarter was up 5.4% compared to the same quarter last year. During the same period in the prior year, the business earned $2.97 EPS. As a group, equities analysts expect that McDonald's Corporation will post 12.25 EPS for the current fiscal year.

McDonald's Dividend Announcement

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

Analysts Set New Price Targets

Several research analysts recently issued reports on MCD shares. Citigroup raised their target price on McDonald's from $364.00 to $365.00 and gave the stock a "buy" rating in a research report on Wednesday, July 9th. Guggenheim reissued a "neutral" rating on shares of McDonald's in a research note on Friday, August 8th. Barclays lifted their price objective on McDonald's from $355.00 to $360.00 and gave the stock an "overweight" rating in a research note on Thursday, August 7th. Truist Financial increased their target price on shares of McDonald's from $356.00 to $360.00 and gave the company a "buy" rating in a research report on Thursday, August 7th. Finally, Redburn Atlantic restated a "sell" rating and issued a $260.00 price target (down previously from $319.00) on shares of McDonald's in a research report on Tuesday, June 10th. 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.com, the stock 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.