McDonald's Corporation (NYSE:MCD) Shares Sold by Rathbones Group PLC

Key Points

• Rathbones Group PLC reduced its stake in McDonald's Corporation by 32.7%, selling 155,303 shares to hold a total of 319,832 shares worth approximately $99.9 million.
• Several institutional investors, including First American Trust FSB, increased their holdings in McDonald's, reflecting continued interest in the fast-food giant.
• McDonald's recently reported $3.19 earnings per share, exceeding analyst expectations, as well as announced a dividend of $1.77 per share with a 2.3% yield.

Rathbones Group PLC reduced its position in McDonald's Corporation (NYSE:MCD - Free Report) by 32.7% in the first quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 319,832 shares of the fast-food giant's stock after selling 155,303 shares during the period. Rathbones Group PLC's holdings in McDonald's were worth $99,906,000 at the end of the most recent reporting period.

A number of other hedge funds also recently added to or reduced their stakes in MCD. Mascagni Wealth Management Inc. purchased a new position in McDonald's in the 4th quarter worth approximately $25,000. Pinney & Scofield Inc. purchased a new position in McDonald's in the 4th quarter worth approximately $29,000. GKV Capital Management Co. Inc. purchased a new position in McDonald's in the 4th quarter worth approximately $30,000. Abound Financial LLC purchased a new position in McDonald's in the 1st quarter worth approximately $30,000. Finally, Copia Wealth Management purchased a new position in McDonald's in the 4th quarter worth approximately $31,000. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on MCD shares. JPMorgan Chase & Co. lifted their target price 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. Barclays lifted their target price on shares of McDonald's from $355.00 to $360.00 and gave the stock an "overweight" rating in a research report on Thursday, August 7th. Robert W. Baird lifted their target price on shares of McDonald's from $300.00 to $315.00 and gave the stock a "neutral" rating in a research report on Friday, May 2nd. Loop Capital downgraded shares of McDonald's from a "buy" rating to a "hold" rating and cut their target price for the stock from $346.00 to $315.00 in a research report on Friday, June 6th. Finally, BMO Capital Markets reaffirmed an "outperform" rating and issued a $350.00 target price (up from $345.00) on shares of McDonald's in a report on Thursday, August 7th. 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. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $326.87.

Insiders Place Their Bets

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,487 shares of the company's stock in a transaction dated Wednesday, August 6th. The shares were 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 approximately $2,713,740. This represents a 22.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider Joseph M. Erlinger sold 939 shares of the company's stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $299.49, for a total transaction of $281,221.11. Following the transaction, the insider owned 9,283 shares of the company's stock, valued at approximately $2,780,165.67. This trade represents a 9.19% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 7,280 shares of company stock worth $2,215,178. Company insiders own 0.25% of the company's stock.

McDonald's Price Performance

NYSE:MCD traded down $0.19 during mid-day trading on Friday, hitting $308.76. The company's stock had a trading volume of 3,404,070 shares, compared to its average volume of 3,615,138. McDonald's Corporation has a 1 year low of $274.70 and a 1 year high of $326.32. The stock has a market cap of $220.33 billion, a price-to-earnings ratio of 26.46, a PEG ratio of 3.11 and a beta of 0.52. The business's fifty day moving average is $298.03 and its two-hundred day moving average is $304.85.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly 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. McDonald's had a net margin of 32.21% and a negative return on equity of 225.52%. The company had revenue of $6.84 billion for the quarter, compared to analyst estimates of $6.68 billion. During the same period in the prior year, the company earned $2.97 earnings per share. The firm's revenue was up 5.4% on a year-over-year basis. Analysts anticipate that McDonald's Corporation will post 12.25 EPS for the current fiscal year.

McDonald's Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd will be given a $1.77 dividend. The ex-dividend date is Tuesday, September 2nd. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.3%. McDonald's's dividend payout ratio is 60.67%.

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.