Nuveen LLC Purchases Shares of 4,241,641 McDonald's Corporation (NYSE:MCD)

Key Points

• Nuveen LLC acquired a new stake in McDonald's Corporation, purchasing over 4.2 million shares valued at approximately $1.32 billion, representing about 0.59% of the company's stock.
• McDonald's reported earnings of $3.19 per share for the most recent quarter, surpassing analysts' expectations and demonstrating a year-over-year revenue increase of 5.4% to $6.84 billion.
• The company declared a quarterly dividend of $1.77 per share, which will be paid on September 16th, providing an annualized yield of 2.3% and a payout ratio of 60.67%.

Nuveen LLC purchased a new position in McDonald's Corporation (NYSE:MCD - Free Report) in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 4,241,641 shares of the fast-food giant's stock, valued at approximately $1,324,961,000. Nuveen LLC owned about 0.59% of McDonald's as of its most recent SEC filing.

Other institutional investors also recently bought and sold shares of the company. Red Door Wealth Management LLC increased its stake in shares of McDonald's by 1.9% during the first quarter. Red Door Wealth Management LLC now owns 5,724 shares of the fast-food giant's stock valued at $1,788,000 after buying an additional 109 shares during the period. Sumitomo Mitsui DS Asset Management Company Ltd increased its stake in shares of McDonald's by 5.6% during the first quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 345,319 shares of the fast-food giant's stock valued at $107,867,000 after buying an additional 18,393 shares during the period. Sagespring Wealth Partners LLC increased its stake in shares of McDonald's by 22.9% during the first quarter. Sagespring Wealth Partners LLC now owns 17,226 shares of the fast-food giant's stock valued at $5,381,000 after buying an additional 3,212 shares during the period. Segment Wealth Management LLC increased its stake in shares of McDonald's by 1.7% during the first quarter. Segment Wealth Management LLC now owns 54,672 shares of the fast-food giant's stock valued at $17,078,000 after buying an additional 937 shares during the period. Finally, Great Waters Wealth Management purchased a new position in shares of McDonald's during the first quarter valued at $864,000. 70.29% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several brokerages have recently commented on MCD. Citigroup raised their price target on McDonald's from $364.00 to $365.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. The Goldman Sachs Group upgraded McDonald's from a "neutral" rating to a "buy" rating and set a $345.00 target price on the stock in a research note on Thursday, July 10th. Redburn Atlantic reiterated a "sell" rating and issued a $260.00 target price (down previously from $319.00) on shares of McDonald's in a research note on Tuesday, June 10th. Barclays lifted their target price on McDonald's from $355.00 to $360.00 and gave the company an "overweight" rating in a research note on Thursday, August 7th. Finally, Loop Capital lowered McDonald's from a "buy" rating to a "hold" rating and dropped their price target for the stock from $346.00 to $315.00 in a research note on Friday, June 6th. Two investment analysts have rated the stock with a sell rating, thirteen have given a hold rating and thirteen have given a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $326.87.

McDonald's Stock Down 0.9%

Shares of MCD stock traded down $2.73 during trading hours on Tuesday, hitting $301.63. 3,438,206 shares of the company's stock were exchanged, compared to its average volume of 3,433,888. The firm has a market cap of $215.24 billion, a P/E ratio of 25.85, a P/E/G ratio of 3.11 and a beta of 0.52. The firm has a 50 day moving average of $298.17 and a two-hundred day moving average of $304.74. McDonald's Corporation has a fifty-two week low of $267.54 and a fifty-two week high of $326.32.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share 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 period in the prior year, the company posted $2.97 EPS. The business's quarterly revenue was up 5.4% on a year-over-year basis. On average, equities analysts forecast that McDonald's Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The company 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. This represents a $7.08 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Tuesday, September 2nd. McDonald's's dividend payout ratio is currently 60.67%.

Insider Activity 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 directly 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 939 shares of the stock in a transaction on Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total value of $281,221.11. Following the completion of the transaction, the insider directly owned 9,283 shares of the company's stock, valued at approximately $2,780,165.67. This represents a 9.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 7,280 shares of company stock valued at $2,215,178. 0.25% of the stock is owned by insiders.

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.