McDonald's Corporation $MCD is Birmingham Capital Management Co. Inc. AL's 4th Largest Position

Key Points

• Birmingham Capital Management Co. Inc. AL reduced its stake in McDonald's Corporation by 10.4%, making it the firm's 4th largest position, valued at approximately $9.3 million.
• Multiple hedge funds, including Nuveen LLC and Goldman Sachs Group Inc., have increased their stakes substantially in McDonald's during the first quarter, highlighting strong institutional interest.
• McDonald's announced a quarterly dividend of $1.77 per share, reflecting a 2.3% yield and a dividend payout ratio of 60.67%.

Birmingham Capital Management Co. Inc. AL lowered its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 10.4% in the second quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 31,868 shares of the fast-food giant's stock after selling 3,684 shares during the period. McDonald's comprises about 4.1% of Birmingham Capital Management Co. Inc. AL's investment portfolio, making the stock its 4th biggest holding. Birmingham Capital Management Co. Inc. AL's holdings in McDonald's were worth $9,311,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds have also modified their holdings of MCD. Nuveen LLC bought a new stake in shares of McDonald's in the 1st quarter valued at approximately $1,324,961,000. Price T Rowe Associates Inc. MD grew its position in McDonald's by 16.8% in the first quarter. Price T Rowe Associates Inc. MD now owns 9,341,460 shares of the fast-food giant's stock worth $2,917,993,000 after acquiring an additional 1,344,954 shares in the last quarter. Goldman Sachs Group Inc. increased its stake in shares of McDonald's by 19.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 4,982,825 shares of the fast-food giant's stock worth $1,556,485,000 after purchasing an additional 815,768 shares during the last quarter. T. Rowe Price Investment Management Inc. raised its holdings in shares of McDonald's by 732.6% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 650,544 shares of the fast-food giant's stock valued at $203,211,000 after purchasing an additional 572,408 shares in the last quarter. Finally, Assenagon Asset Management S.A. lifted its stake in shares of McDonald's by 204.8% in the 2nd quarter. Assenagon Asset Management S.A. now owns 607,145 shares of the fast-food giant's stock valued at $177,390,000 after purchasing an additional 407,982 shares during the last quarter. 70.29% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities analysts have commented on MCD shares. BMO Capital Markets increased their target price on shares of McDonald's from $350.00 to $360.00 and gave the stock an "outperform" rating in a research report on Thursday, September 4th. The Goldman Sachs Group raised McDonald's from a "neutral" rating to a "buy" rating and set a $345.00 price objective on the stock in a report on Thursday, July 10th. Piper Sandler upped their target price on McDonald's from $314.00 to $325.00 and gave the stock a "neutral" rating in a research report on Thursday, August 7th. Truist Financial lowered their price target on McDonald's from $360.00 to $350.00 and set a "buy" rating on the stock in a report on Tuesday, October 14th. Finally, Barclays upped their price objective on shares of McDonald's from $355.00 to $360.00 and gave the stock an "overweight" rating in a report on Thursday, August 7th. Eleven research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, McDonald's presently has an average rating of "Hold" and an average target price of $324.68.

Insider Transactions at McDonald's

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,487 shares of the company'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 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 $2,713,740. This represents a 22.12% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CMO Edith Morgan Flatley sold 1,000 shares of McDonald's stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $315.00, for a total value of $315,000.00. Following the sale, the chief marketing officer directly owned 6,858 shares in the company, valued at $2,160,270. The trade was a 12.73% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 6,402 shares of company stock valued at $1,973,407. 0.25% of the stock is currently owned by insiders.

McDonald's Trading Up 0.9%

MCD opened at $308.02 on Monday. The business has a 50 day moving average of $306.29 and a 200-day moving average of $305.41. The stock has a market capitalization of $219.80 billion, a price-to-earnings ratio of 26.39, a P/E/G ratio of 3.25 and a beta of 0.50. McDonald's Corporation has a 1-year low of $276.53 and a 1-year high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last announced its 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. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. The business had revenue of $6.84 billion for the quarter, compared to analyst estimates of $6.68 billion. During the same quarter in the previous year, the firm posted $2.97 earnings per share. McDonald's's revenue was up 5.4% compared to the same quarter last year. Equities analysts predict that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd were given a dividend of $1.77 per share. The ex-dividend date of this dividend was Tuesday, September 2nd. This represents a $7.08 dividend on an annualized basis and a yield of 2.3%. McDonald's's dividend payout ratio (DPR) is 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.

Want to see what other hedge funds are holding MCD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for McDonald's Corporation (NYSE:MCD - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.