McDonald's Corporation $MCD Shares Sold by Swedbank AB

Key Points

• Swedbank AB reduced its McDonald’s stake by 3.8% in the first quarter, selling 42,353 shares and leaving it with 1,062,158 shares valued at about $330.1 million.
• McDonald’s reported stronger-than-expected quarterly results, posting earnings of $2.83 per share versus the $2.74 estimate and revenue of $6.52 billion, up 9.4% from a year earlier.
• The company continues to reward shareholders with a quarterly dividend of $1.86 per share, equal to a $7.44 annualized payout and a 2.6% yield; analysts currently rate the stock a “Moderate Buy” with an average target price of $335.70.

Swedbank AB trimmed its holdings in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 3.8% during the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 1,062,158 shares of the fast-food giant's stock after selling 42,353 shares during the quarter. Swedbank AB owned 0.15% of McDonald's worth $330,108,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds also recently added to or reduced their stakes in the company. Hamilton Point Investment Advisors LLC increased its holdings in shares of McDonald's by 1.8% during the fourth quarter. Hamilton Point Investment Advisors LLC now owns 1,750 shares of the fast-food giant's stock valued at $535,000 after acquiring an additional 31 shares in the last quarter. Encompass More Asset Management grew its position in McDonald's by 1.5% during the 4th quarter. Encompass More Asset Management now owns 2,120 shares of the fast-food giant's stock worth $648,000 after purchasing an additional 32 shares during the last quarter. Richmond Investment Services LLC grew its position in McDonald's by 1.4% during the 4th quarter. Richmond Investment Services LLC now owns 2,278 shares of the fast-food giant's stock worth $696,000 after purchasing an additional 32 shares during the last quarter. Papamarkou Wellner Asset Management inc. increased its stake in McDonald's by 0.4% during the 4th quarter. Papamarkou Wellner Asset Management inc. now owns 8,809 shares of the fast-food giant's stock valued at $2,692,000 after purchasing an additional 32 shares in the last quarter. Finally, Physician Wealth Advisors Inc. increased its stake in McDonald's by 1.6% during the 4th quarter. Physician Wealth Advisors Inc. now owns 2,102 shares of the fast-food giant's stock valued at $642,000 after purchasing an additional 33 shares in the last quarter. 70.29% of the stock is owned by institutional investors and hedge funds.

McDonald's Trading Up 1.2%

NYSE MCD traded up $3.36 on Tuesday, hitting $282.86. 1,274,873 shares of the company's stock traded hands, compared to its average volume of 3,757,435. McDonald's Corporation has a 1-year low of $264.53 and a 1-year high of $341.75. The firm's 50-day moving average price is $280.25 and its two-hundred day moving average price is $303.11. The firm has a market capitalization of $200.97 billion, a PE ratio of 23.36, a P/E/G ratio of 2.80 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping analysts' consensus estimates of $2.74 by $0.09. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. The firm had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same quarter in the prior year, the business earned $2.67 earnings per share. The business's quarterly revenue was up 9.4% compared to the same quarter last year. On average, research analysts anticipate that McDonald's Corporation will post 12.93 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were issued a $1.86 dividend. This represents a $7.44 annualized dividend and a yield of 2.6%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald's's dividend payout ratio is presently 61.34%.

Analyst Upgrades and Downgrades

MCD has been the subject of a number of research analyst reports. Wells Fargo & Company decreased their price target on shares of McDonald's from $355.00 to $320.00 and set an "overweight" rating for the company in a report on Friday, May 8th. Morgan Stanley set a $331.00 price objective on shares of McDonald's in a report on Friday, May 8th. TD Cowen reissued a "hold" rating on shares of McDonald's in a research report on Friday, June 12th. KeyCorp reduced their target price on McDonald's from $330.00 to $315.00 and set an "overweight" rating for the company in a research note on Monday, June 29th. Finally, Rothschild & Co Redburn raised McDonald's from a "sell" rating to a "neutral" rating and lifted their price target for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. Sixteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, McDonald's has a consensus rating of "Moderate Buy" and an average target price of $335.70.

Key Headlines Impacting McDonald's

Here are the key news stories impacting McDonald's this week:

• Positive Sentiment: Market commentary says McDonald’s outperformed during a weak tech day, reinforcing its status as a defensive “nervous money” name and a possible sign that income investors are rotating into the stock. Article Title
• Positive Sentiment: Analysts and commentators continue to frame McDonald’s as a strong dividend and quality consumer-staples holding, which can support the stock when markets are uncertain. Article Title
• Positive Sentiment: Brand and menu headlines point to continued merchandising and product refreshes, including new billboards, a BT21 Happy Meals launch, and an item that is “finally getting better,” all of which may help engagement and store traffic. Article Title
• Neutral Sentiment: A piece comparing Chipotle and McDonald’s argues the fast-food backdrop is diverging, but it does not clearly change the near-term outlook for MCD on its own. Article Title
• Neutral Sentiment: Options-market chatter suggests traders are positioning for a larger move in MCD, but it does not provide a clear fundamental catalyst by itself. Article Title
• Negative Sentiment: Some articles note competition in fast food remains intense, with rivals and burger chains battling for share, which can pressure traffic and pricing power over time. Article Title

Insider Activity

In other news, insider Joseph M. Erlinger sold 5,252 shares of the company's stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the sale, the insider owned 7,734 shares in the company, valued at $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 11,307 shares of company stock worth $3,262,622 over the last ninety days. 0.26% of the stock is owned by insiders.

About McDonald's

McDonald's Corporation NYSE: MCD is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald's serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand's national and international expansion.

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