Mutual of America Capital Management LLC Sells 2,506 Shares of McDonald's Corporation (NYSE:MCD)

Key Points

• Mutual of America Capital Management LLC reduced its holdings in McDonald's by 2.9% during the first quarter, now owning 83,392 shares worth approximately $26 million.
• Several hedge funds, like Red Door Wealth Management and Sumitomo Mitsui DS Asset Management, recently increased their stakes in McDonald's, with the combined institutional ownership at 70.29%.
• McDonald's plans to pay a $1.77 quarterly dividend to shareholders on September 16, contributing to a 2.3% annualized dividend yield.

Mutual of America Capital Management LLC lessened its position in McDonald's Corporation (NYSE:MCD - Free Report) by 2.9% during the 1st quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 83,392 shares of the fast-food giant's stock after selling 2,506 shares during the period. Mutual of America Capital Management LLC's holdings in McDonald's were worth $26,049,000 as of its most recent filing with the SEC.

Several other institutional investors and hedge funds also recently made changes to their positions in the company. Mascagni Wealth Management Inc. acquired a new position in McDonald's during the 4th quarter worth about $25,000. Abound Financial LLC acquired a new position in McDonald's during the 1st quarter worth about $30,000. Pinney & Scofield Inc. acquired a new position in McDonald's during the 4th quarter worth about $29,000. Redmont Wealth Advisors LLC acquired a new position in McDonald's during the 1st quarter worth about $31,000. Finally, Financial Gravity Asset Management Inc. bought a new stake in shares of McDonald's in the 1st quarter valued at about $31,000. Institutional investors and hedge funds own 70.29% of the company's stock.

Wall Street Analyst Weigh In

MCD has been the subject of a number of research reports. Bank of America lowered their target price 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. Citigroup increased their target price on McDonald's from $364.00 to $365.00 and gave the stock a "buy" rating in a research note on Wednesday, July 9th. Redburn Atlantic reissued a "sell" rating and set a $260.00 target price (down from $319.00) on shares of McDonald's in a research note on Tuesday, June 10th. Truist Financial increased their target price on McDonald's from $356.00 to $360.00 and gave the stock a "buy" rating in a research note on Thursday. Finally, Northcoast Research cut McDonald's from a "buy" rating to a "neutral" rating in a research note on Tuesday, May 6th. Two investment analysts have rated the stock with a sell rating, thirteen have issued a hold rating and thirteen have issued a buy rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $326.87.

McDonald's Stock Performance

Shares of NYSE MCD traded down $2.29 during mid-day trading on Friday, reaching $305.62. The company had a trading volume of 2,621,959 shares, compared to its average volume of 3,621,084. McDonald's Corporation has a one year low of $265.33 and a one year high of $326.32. The firm has a market cap of $218.53 billion, a price-to-earnings ratio of 26.19, a PEG ratio of 3.22 and a beta of 0.52. The business's 50-day simple moving average is $298.73 and its 200 day simple moving average is $304.17.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 EPS for the quarter, topping analysts' consensus estimates of $3.15 by $0.04. McDonald's had a negative return on equity of 206.70% and a net margin of 32.21%. The company had revenue of $6.84 billion for the quarter, compared to analysts' expectations of $6.68 billion. During the same quarter last year, the business earned $2.97 earnings per share. McDonald's's revenue was up 5.4% on a year-over-year basis. On average, sell-side analysts anticipate that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be paid a $1.77 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $7.08 annualized dividend and a yield of 2.3%. McDonald's's dividend payout ratio (DPR) is 60.67%.

Insider Activity at McDonald's

In related news, insider Joseph M. Erlinger sold 939 shares of the firm's stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $299.49, for a total value of $281,221.11. Following 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 ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CMO Edith Morgan Flatley sold 976 shares of the firm's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $303.50, for a total value of $296,216.00. Following the completion of the sale, the chief marketing officer directly owned 7,882 shares in the company, valued at $2,392,187. This trade represents a 11.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 7,280 shares of company stock valued at $2,215,178 over the last ninety days. 0.25% of the stock is owned by corporate insiders.

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.