Lewis Asset Management LLC Makes New $1.42 Million Investment in McDonald's Corporation $MCD

Key Points

• Lewis Asset Management LLC has established a new investment in McDonald's Corporation, acquiring 4,850 shares valued at approximately $1.4 million during the second quarter.
• Institutional investors currently hold 70.29% of McDonald's stock, with several firms recently increasing their stakes in the fast-food giant.
• McDonald's reported earnings of $3.19 per share for the last quarter, surpassing analyst expectations, and also declared a quarterly dividend of $1.77 per share.

Lewis Asset Management LLC acquired a new stake in McDonald's Corporation (NYSE:MCD - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm acquired 4,850 shares of the fast-food giant's stock, valued at approximately $1,417,000.

Several other large investors also recently modified their holdings of the stock. Mascagni Wealth Management Inc. bought a new stake in McDonald's in the 4th quarter worth approximately $25,000. HFM Investment Advisors LLC bought a new position in McDonald's in the first quarter valued at about $26,000. Nova Wealth Management Inc. purchased a new stake in shares of McDonald's during the first quarter worth about $26,000. Pinney & Scofield Inc. purchased a new position in McDonald's during the 4th quarter valued at approximately $29,000. Finally, Abound Financial LLC bought a new stake in shares of McDonald's in the 1st quarter valued at approximately $30,000. Institutional investors and hedge funds own 70.29% of the company's stock.

Insider Activity at McDonald's

In related news, EVP Desiree Ralls-Morrison sold 2,487 shares of the company's stock in a transaction on Wednesday, August 6th. The shares were sold at an average price of $310.00, for a total transaction of $770,970.00. Following the sale, the executive vice president owned 8,754 shares of the company's stock, valued at $2,713,740. This represents a 22.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Jonathan Banner sold 1,000 shares of the stock in a transaction dated Tuesday, August 19th. The stock was sold at an average price of $310.00, for a total transaction of $310,000.00. Following the transaction, the executive vice president 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 disclosure for this sale can be found here. Insiders sold a total of 7,402 shares of company stock worth $2,273,407 over the last ninety days. 0.25% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several research analysts have recently commented on MCD shares. Loop Capital lowered McDonald's from a "buy" rating to a "hold" rating and lowered their price target for the stock from $346.00 to $315.00 in a research report on Friday, June 6th. Bank of America cut their price objective on McDonald's from $327.00 to $322.00 and set a "neutral" rating for the company in a research report on Friday, July 18th. TD Securities reaffirmed a "hold" rating and set a $305.00 price target on shares of McDonald's in a research report on Thursday, June 5th. The Goldman Sachs Group upgraded shares of McDonald's from a "neutral" rating to a "buy" rating and set a $345.00 price objective on the stock in a research note on Thursday, July 10th. Finally, Redburn Atlantic restated a "sell" rating and set a $260.00 target price (down from $319.00) on shares of McDonald's in a report on Tuesday, June 10th. Eleven analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $325.86.

McDonald's Stock Performance

Shares of NYSE MCD traded up $1.09 during midday trading on Monday, reaching $303.47. The company's stock had a trading volume of 3,637,178 shares, compared to its average volume of 3,025,440. The business's 50 day moving average price is $306.09 and its two-hundred day moving average price is $306.29. The company has a market cap of $216.56 billion, a P/E ratio of 26.00, a P/E/G ratio of 3.08 and a beta of 0.49. McDonald's Corporation has a fifty-two week low of $276.53 and a fifty-two week high of $326.32.

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

McDonald's Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd were issued a dividend of $1.77 per share. This represents a $7.08 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend was Tuesday, September 2nd. 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.