McDonald's Corporation $MCD Shares Sold by Headland Capital LLC

Key Points

• Headland Capital LLC significantly reduced its holdings in McDonald's, selling 59.9% of its shares during the second quarter, leaving it with only 1,292 shares valued at approximately $378,000.
• There has been mixed activity among other institutional investors, with increasing its stake by 21.6%, while analysts have provided varied ratings, indicating a consensus rating of "Hold" with a price target of $325.86.
• McDonald's reported strong earnings, with an EPS of $3.19 for the latest quarter, beating the consensus estimate of $3.15 and showing a year-over-year revenue increase of 5.4%.

Headland Capital LLC trimmed its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 59.9% in the second quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 1,292 shares of the fast-food giant's stock after selling 1,927 shares during the quarter. McDonald's comprises approximately 0.2% of Headland Capital LLC's portfolio, making the stock its 23rd biggest position. Headland Capital LLC's holdings in McDonald's were worth $378,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently added to or reduced their stakes in MCD. Brighton Jones LLC boosted its holdings in McDonald's by 21.6% in the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock valued at $2,692,000 after purchasing an additional 1,649 shares in the last quarter. Revolve Wealth Partners LLC boosted its holdings in McDonald's by 2.8% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant's stock valued at $563,000 after purchasing an additional 52 shares in the last quarter. Quotient Wealth Partners LLC boosted its holdings in McDonald's by 10.9% in the first quarter. Quotient Wealth Partners LLC now owns 2,616 shares of the fast-food giant's stock valued at $817,000 after purchasing an additional 258 shares in the last quarter. First Affirmative Financial Network acquired a new position in McDonald's in the first quarter valued at approximately $250,000. Finally, Sivia Capital Partners LLC boosted its holdings in McDonald's by 4.1% in the first quarter. Sivia Capital Partners LLC now owns 1,811 shares of the fast-food giant's stock valued at $566,000 after purchasing an additional 72 shares in the last quarter. 70.29% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at McDonald's

In other news, insider Joseph M. Erlinger sold 939 shares of the firm's 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 completion of the transaction, the insider owned 9,283 shares in the company, valued at $2,780,165.67. This trade represents a 9.19% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,487 shares of the firm's stock in a transaction on Wednesday, August 6th. The shares were 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 approximately $2,713,740. This represents a 22.12% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 7,402 shares of company stock worth $2,273,407. Corporate insiders own 0.25% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently issued reports on MCD shares. Melius started coverage on McDonald's in a report on Monday, July 14th. They issued a "sell" rating and a $250.00 price target for the company. The Goldman Sachs Group raised McDonald's from a "neutral" rating to a "buy" rating and set a $345.00 price objective for the company in a report on Thursday, July 10th. Stifel Nicolaus raised their target price on shares of McDonald's from $300.00 to $315.00 and gave the stock a "hold" rating in a research report on Friday, August 22nd. Argus lowered shares of McDonald's from a "buy" rating to a "hold" rating in a research report on Friday, June 13th. Finally, TD Cowen increased 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, August 6th. Twelve investment 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. According to MarketBeat, the company currently has a consensus rating of "Hold" and a consensus price target of $325.86.

McDonald's Stock Performance

Shares of McDonald's stock opened at $300.72 on Monday. McDonald's Corporation has a one year low of $276.53 and a one year high of $326.32. The company has a market cap of $214.59 billion, a P/E ratio of 25.77, a PEG ratio of 3.07 and a beta of 0.50. The firm has a fifty day moving average of $306.93 and a two-hundred day moving average of $306.15.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 EPS for the quarter, topping 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 company had revenue of $6.84 billion during the quarter, compared to analysts' expectations of $6.68 billion. During the same quarter last year, the business earned $2.97 EPS. The business's revenue was up 5.4% on a year-over-year basis. As a group, equities analysts predict that McDonald's Corporation will post 12.25 earnings per share for the current year.

McDonald's Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd were given a $1.77 dividend. The ex-dividend date was Tuesday, September 2nd. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.4%. McDonald's's dividend payout ratio (DPR) is currently 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.

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