Prime Capital Investment Advisors LLC Trims Stock Position in McDonald's Corporation $MCD

Key Points

• Prime Capital Investment Advisors LLC reduced its holdings in McDonald's by 17.4%, ending the quarter with 39,090 shares valued at approximately $11.4 million.
• McDonald's reported earnings per share of $3.19 for the last quarter, which exceeded analyst estimates and represented a 5.4% increase in revenue year-over-year.
• The company announced a quarterly dividend of $1.77 per share, with an annualized payout of $7.08 and a yield of 2.4%.

Prime Capital Investment Advisors LLC trimmed its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 17.4% in the 2nd quarter, according to its most recent disclosure with the SEC. The firm owned 39,090 shares of the fast-food giant's stock after selling 8,236 shares during the period. Prime Capital Investment Advisors LLC's holdings in McDonald's were worth $11,421,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. HFM Investment Advisors LLC purchased a new position in McDonald's during the first quarter worth about $26,000. Nova Wealth Management Inc. acquired a new position in shares of McDonald's in the 1st quarter worth approximately $26,000. Abound Financial LLC purchased a new position in shares of McDonald's during the 1st quarter worth approximately $30,000. Redmont Wealth Advisors LLC acquired a new stake in McDonald's in the 1st quarter valued at approximately $31,000. Finally, Financial Gravity Asset Management Inc. acquired a new stake in McDonald's in the 1st quarter valued at approximately $31,000. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Trading Up 0.3%

McDonald's stock opened at $300.72 on Monday. The company has a fifty day simple moving average of $306.93 and a 200-day simple moving average of $306.15. The stock has a market cap of $214.59 billion, a P/E ratio of 25.77, a price-to-earnings-growth ratio of 3.07 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, beating the consensus estimate 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 for the quarter was up 5.4% compared to the same quarter last year. During the same quarter in the prior year, the company posted $2.97 earnings per share. As a group, sell-side analysts forecast that McDonald's Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald's Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd were paid a dividend of $1.77 per share. The ex-dividend date was Tuesday, September 2nd. This represents a $7.08 annualized dividend and a yield of 2.4%. McDonald's's payout ratio is presently 60.67%.

Insiders Place Their Bets

In other news, CMO Edith Morgan Flatley sold 1,000 shares of the business's stock in a transaction that occurred on Thursday, July 10th. The shares were sold at an average price of $300.00, for a total transaction of $300,000.00. Following the completion of the sale, the chief marketing officer owned 8,858 shares in the company, valued at approximately $2,657,400. The trade was a 10.14% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 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 transaction of $310,000.00. Following the completion of the transaction, the executive vice president directly owned 99 shares in the company, valued at $30,690. This trade represents a 90.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 7,402 shares of company stock valued at $2,273,407. 0.25% of the stock is owned by company insiders.

Analyst Ratings Changes

Several research analysts have recently commented on the company. Stifel Nicolaus raised 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 target price on McDonald's from $327.00 to $322.00 and set a "neutral" rating on the stock in a research note on Friday, July 18th. Guggenheim reaffirmed a "neutral" rating on shares of McDonald's in a research report on Friday, August 8th. JPMorgan Chase & Co. increased their price target on shares of McDonald's from $305.00 to $310.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Finally, Citigroup raised their price objective on shares of McDonald's from $373.00 to $381.00 and gave the company a "buy" rating in a research note on Wednesday, September 17th. Twelve research analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $325.86.

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.

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