McDonald's Corporation $MCD Stake Lowered by Tompkins Financial Corp

Key Points

• Tompkins Financial Corp has reduced its stake in McDonald's by 1.8%, now owning 54,753 shares worth approximately $15.99 million, making it the 16th largest holding in their portfolio.
• The company's share price opened at $304.51 with a market cap of $217.30 billion, and analysts anticipate a potential growth in price targets, estimating a consensus target of $325.86.
• McDonald's recently declared a quarterly dividend of $1.77, equating to an annualized yield of 2.3%, with a payout ratio of 60.67% of earnings.

Tompkins Financial Corp cut its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 1.8% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund owned 54,753 shares of the fast-food giant's stock after selling 1,019 shares during the quarter. McDonald's makes up 1.5% of Tompkins Financial Corp's portfolio, making the stock its 16th biggest holding. Tompkins Financial Corp's holdings in McDonald's were worth $15,997,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors have also recently bought and sold shares of the company. Mascagni Wealth Management Inc. purchased a new stake in shares of McDonald's during the 4th quarter worth about $25,000. HFM Investment Advisors LLC acquired a new position in McDonald's in the first quarter worth approximately $26,000. Nova Wealth Management Inc. bought a new position in McDonald's during the first quarter valued at approximately $26,000. Pinney & Scofield Inc. acquired a new stake in McDonald's in the fourth quarter valued at approximately $29,000. Finally, Abound Financial LLC bought a new stake in McDonald's in the first quarter worth approximately $30,000. Institutional investors and hedge funds own 70.29% of the company's stock.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on MCD shares. TD Securities restated a "hold" rating and set a $305.00 price target on shares of McDonald's in a report on Thursday, June 5th. Stifel Nicolaus boosted their price target on McDonald's from $300.00 to $315.00 and gave the stock a "hold" rating in a research report on Friday, August 22nd. Bank of America decreased their price target on McDonald's from $327.00 to $322.00 and set a "neutral" rating for the company in a research note on Friday, July 18th. Evercore ISI raised their price objective on McDonald's from $350.00 to $360.00 and gave the company an "outperform" rating in a research note on Friday, August 8th. Finally, BMO Capital Markets boosted their target price on McDonald's from $350.00 to $360.00 and gave the stock an "outperform" rating in a report on Thursday, September 4th. Eleven investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus target price of $325.86.

McDonald's Stock Up 0.4%

Shares of MCD opened at $304.51 on Thursday. The company has a 50-day moving average price of $305.96 and a two-hundred day moving average price of $306.49. The stock has a market cap of $217.30 billion, a price-to-earnings ratio of 26.09, a P/E/G ratio of 3.09 and a beta of 0.50. McDonald's Corporation has a 12 month low of $276.53 and a 12 month high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last posted 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 negative return on equity of 225.52% and a net margin of 32.21%.The business had revenue of $6.84 billion during the quarter, compared to the consensus estimate of $6.68 billion. During the same quarter last year, the company earned $2.97 EPS. McDonald's's revenue was up 5.4% on a year-over-year basis. Equities research analysts expect that McDonald's Corporation will post 12.25 EPS for the current fiscal year.

McDonald's Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, September 16th. Shareholders 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 yield of 2.3%. McDonald's's payout ratio is 60.67%.

Insider Activity

In related 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 transaction of $281,221.11. Following the completion of the sale, the insider directly owned 9,283 shares of the company's stock, valued at $2,780,165.67. This trade represents a 9.19% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Jonathan Banner sold 1,000 shares of the business's stock in a transaction on Tuesday, August 19th. The stock was 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 directly owned 99 shares in the company, valued at approximately $30,690. This represents a 90.99% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 8,341 shares of company stock valued at $2,544,327 over the last three months. 0.25% of the stock is owned by corporate insiders.

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.

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