Flputnam Investment Management Co. Cuts Stake in McDonald's Corporation $MCD

Key Points

• Flputnam Investment Management Co. reduced its stake in McDonald's by 5.7%, resulting in ownership of 37,044 shares valued at approximately $11.57 million.
• Analysts have rated McDonald's stock with thirteen buy ratings, fourteen hold ratings, and two sell ratings, with a consensus rating of "Hold" and an average target price of $326.38.
• The fast-food giant reported $3.19 EPS for the last quarter, exceeding analyst estimates, with total revenue reaching $6.84 billion.

Flputnam Investment Management Co. lowered its position in McDonald's Corporation (NYSE:MCD - Free Report) by 5.7% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 37,044 shares of the fast-food giant's stock after selling 2,242 shares during the period. Flputnam Investment Management Co.'s holdings in McDonald's were worth $11,572,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. Mascagni Wealth Management Inc. acquired a new stake in shares of McDonald's in the 4th quarter worth approximately $25,000. Abound Financial LLC acquired a new stake in McDonald's during the 1st quarter valued at $30,000. Pinney & Scofield Inc. acquired a new stake in McDonald's during the 4th quarter valued at $29,000. Redmont Wealth Advisors LLC acquired a new stake in McDonald's during the 1st quarter valued at $31,000. Finally, Financial Gravity Asset Management Inc. acquired a new stake in McDonald's during the 1st quarter valued at $31,000. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Trading Down 0.8%

Shares of McDonald's stock traded down $2.69 during trading hours on Friday, reaching $314.30. 2,531,777 shares of the company's stock were exchanged, compared to its average volume of 3,563,786. McDonald's Corporation has a 52-week low of $276.53 and a 52-week high of $326.32. The firm has a market capitalization of $224.28 billion, a price-to-earnings ratio of 26.93, a price-to-earnings-growth ratio of 3.22 and a beta of 0.50. The company has a fifty day moving average of $303.42 and a 200-day moving average of $306.39.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share for the quarter, topping analysts' consensus estimates of $3.15 by $0.04. The company 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 for the quarter was up 5.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.97 EPS. On average, equities research analysts anticipate 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 will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be given a $1.77 dividend. This represents a $7.08 annualized dividend and a dividend yield of 2.3%. The ex-dividend date of this dividend is Tuesday, September 2nd. McDonald's's dividend payout ratio (DPR) is 60.67%.

Analyst Ratings Changes

A number of brokerages have commented on MCD. TD Securities reiterated a "hold" rating and set a $305.00 target price on shares of McDonald's in a report on Thursday, June 5th. Piper Sandler increased their target price on McDonald's from $314.00 to $325.00 and gave the company a "neutral" rating in a report on Thursday, August 7th. Bank of America lowered their target price on McDonald's from $327.00 to $322.00 and set a "neutral" rating on the stock in a report on Friday, July 18th. The Goldman Sachs Group upgraded McDonald's from a "neutral" rating to a "buy" rating and set a $345.00 target price on the stock in a report on Thursday, July 10th. Finally, KeyCorp reiterated an "overweight" rating and set a $335.00 target price (up previously from $325.00) on shares of McDonald's in a report on Thursday, August 7th. Twelve research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $325.35.

Insider Transactions at McDonald's

In related news, insider Joseph M. Erlinger sold 939 shares of the stock in a transaction on Wednesday, July 23rd. The stock was sold at an average price of $299.49, for a total value of $281,221.11. Following the transaction, the insider directly owned 9,283 shares of the company's stock, valued at approximately $2,780,165.67. This trade represents a 9.19% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CMO Edith Morgan Flatley sold 1,000 shares of the stock in a transaction 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 completion of the transaction, the chief marketing officer directly owned 6,858 shares in the company, valued at $2,160,270. This trade represents a 12.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 8,341 shares of company stock valued at $2,544,327. Corporate insiders own 0.25% of the company's stock.

McDonald's Company 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.