McDonald's Corporation $MCD Stake Cut by Voleon Capital Management LP

Key Points

• Voleon Capital Management LP reduced its stake in McDonald's by 93.3%, now holding only 644 shares valued at $201,000 after selling 8,946 shares in the first quarter.
• Several large investors adjusted their positions, with Nuveen LLC acquiring a new stake worth $1.32 billion and GAMMA Investing LLC boosting its holdings by an extraordinary 39,039.7%.
• McDonald's announced a quarterly dividend of $1.77 per share for shareholders of record on September 2nd, providing an annual yield of 2.3%.

Voleon Capital Management LP cut its position in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 93.3% during the 1st quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 644 shares of the fast-food giant's stock after selling 8,946 shares during the quarter. Voleon Capital Management LP's holdings in McDonald's were worth $201,000 at the end of the most recent reporting period.

Several other large investors have also recently added to or reduced their stakes in MCD. Nuveen LLC bought a new position in McDonald's during the first quarter worth $1,324,961,000. GAMMA Investing LLC increased its position in McDonald's by 39,039.7% in the first quarter. GAMMA Investing LLC now owns 3,497,919 shares of the fast-food giant's stock worth $1,092,645,000 after buying an additional 3,488,982 shares during the period. Price T Rowe Associates Inc. MD increased 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 buying an additional 1,344,954 shares during the period. Goldman Sachs Group Inc. increased its position in McDonald's by 19.6% in the first quarter. Goldman Sachs Group Inc. now owns 4,982,825 shares of the fast-food giant's stock worth $1,556,485,000 after buying an additional 815,768 shares during the period. Finally, Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in McDonald's in the fourth quarter worth $211,824,000. 70.29% of the stock is currently owned by institutional investors.

McDonald's Stock Down 2.0%

NYSE:MCD opened at $306.17 on Thursday. The business's 50-day moving average price is $304.80 and its 200 day moving average price is $306.60. The firm has a market cap of $218.48 billion, a P/E ratio of 26.24, a PEG ratio of 3.18 and a beta of 0.50. McDonald's Corporation has a 52-week low of $276.53 and a 52-week high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last released 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. The firm 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%.McDonald's's revenue was up 5.4% compared to the same quarter last year. During the same period in the previous year, the company earned $2.97 earnings per share. Sell-side analysts expect that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Dividend Announcement

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 issued a dividend of $1.77 per share. This represents a $7.08 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date of this dividend is Tuesday, September 2nd. McDonald's's payout ratio is presently 60.67%.

Insider Transactions at McDonald's

In related news, EVP Desiree Ralls-Morrison sold 2,487 shares of the stock in a transaction 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 in the company, valued at $2,713,740. This trade represents a 22.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Jonathan Banner sold 1,000 shares of the stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $310.00, for a total value of $310,000.00. Following the completion of the transaction, the executive vice president owned 99 shares of the company's stock, valued at $30,690. This trade represents a 90.99% decrease in their position. The disclosure for this sale can be found here. Insiders sold 8,341 shares of company stock valued at $2,544,327 in the last three months. 0.25% of the stock is currently owned by insiders.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Erste Group Bank lowered McDonald's from a "strong-buy" rating to a "hold" rating in a research report on Saturday, May 24th. Piper Sandler increased 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. Redburn Atlantic reaffirmed a "sell" rating and issued a $260.00 target price (down from $319.00) on shares of McDonald's in a research report on Tuesday, June 10th. The Goldman Sachs Group raised McDonald's from a "neutral" rating to a "buy" rating and set a $345.00 target price on the stock in a research report on Thursday, July 10th. Finally, Loop Capital lowered McDonald's from a "buy" rating to a "hold" rating and lowered their price target for the company from $346.00 to $315.00 in a report on Friday, June 6th. Eleven analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $325.14.

McDonald's 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.

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