Levin Capital Strategies L.P. Trims Holdings in McDonald's Corporation (NYSE:MCD)

Key Points

• Levin Capital Strategies L.P. has reduced its holdings in McDonald's Corporation by 45.9%, selling 1,013 shares and now owning 1,195 shares valued at $373,000.
• Insiders have recently sold significant shares, with CMO Edith Morgan Flatley selling 1,000 shares for $300,000, indicating a 10.14% decrease in their ownership.
• Analysts are divided on McDonald's stock with ratings ranging from sell to buy, while the average target price is set at $323.39.

Levin Capital Strategies L.P. cut its position in McDonald's Corporation (NYSE:MCD - Free Report) by 45.9% in the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 1,195 shares of the fast-food giant's stock after selling 1,013 shares during the period. Levin Capital Strategies L.P.'s holdings in McDonald's were worth $373,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors also recently modified their holdings of the company. Mascagni Wealth Management Inc. bought a new position in McDonald's in the 4th quarter worth approximately $25,000. Pinney & Scofield Inc. purchased a new stake in shares of McDonald's in the fourth quarter worth about $29,000. GKV Capital Management Co. Inc. purchased a new position in McDonald's during the 4th quarter valued at approximately $30,000. Abound Financial LLC purchased a new stake in shares of McDonald's during the 1st quarter worth approximately $30,000. Finally, Copia Wealth Management purchased a new position in shares of McDonald's in the fourth quarter valued at $31,000. Hedge funds and other institutional investors own 70.29% of the company's stock.

Insider Buying and Selling

In related news, insider Joseph M. Erlinger sold 939 shares of the stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total value of $281,221.11. Following the completion of the transaction, the insider directly owned 9,283 shares of the company's stock, valued at $2,780,165.67. This trade represents a 9.19% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,487 shares of McDonald's stock in a transaction that occurred on Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total transaction of $770,970.00. Following the completion of the sale, the executive vice president owned 8,754 shares of the company's stock, valued at $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. Insiders have sold a total of 7,280 shares of company stock worth $2,215,178 in the last ninety days. 0.25% of the stock is owned by insiders.

McDonald's Stock Performance

MCD stock traded up $0.24 during trading on Thursday, reaching $307.90. 3,600,765 shares of the company traded hands, compared to its average volume of 3,770,135. The business has a 50 day simple moving average of $298.73 and a 200 day simple moving average of $304.17. McDonald's Corporation has a 12 month low of $265.33 and a 12 month high of $326.32. The company has a market capitalization of $220.16 billion, a price-to-earnings ratio of 26.38, a price-to-earnings-growth ratio of 3.22 and a beta of 0.52.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share for the quarter, beating analysts' consensus estimates of $3.15 by $0.04. McDonald's had a net margin of 32.21% and a negative return on equity of 206.70%. The business had revenue of $6.84 billion for the quarter, compared to analysts' expectations of $6.68 billion. During the same period last year, the business earned $2.97 EPS. The company's revenue was up 5.4% compared to the same quarter last year. As a group, research analysts forecast that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Announces Dividend

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

Analyst Upgrades and Downgrades

MCD has been the subject of a number of recent research reports. Melius initiated coverage on shares of McDonald's in a research note on Monday, July 14th. They issued a "sell" rating and a $250.00 price objective for the company. TD Securities reaffirmed a "hold" rating and set a $305.00 price objective on shares of McDonald's in a research note on Thursday, June 5th. TD Cowen lifted their price target on shares of McDonald's from $305.00 to $315.00 and gave the stock a "hold" rating in a research note on Wednesday. Morgan Stanley boosted their target price on McDonald's from $324.00 to $326.00 and gave the company an "equal weight" rating in a research report on Monday, July 14th. Finally, Northcoast Research cut McDonald's from a "buy" rating to a "neutral" rating in a report on Tuesday, May 6th. Two investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and thirteen have given a buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus price target of $326.00.

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.