Sit Investment Associates Inc. Sells 1,608 Shares of McDonald's Corporation (NYSE:MCD)

Key Points

• Sit Investment Associates Inc. decreased its stake in McDonald's by 2.9%, now holding 53,622 shares worth approximately $16.75 million.
• McDonald's recently declared a quarterly dividend of $1.77 per share, representing an annualized dividend of $7.08 and a yield of 2.3%.
• The company's Q2 earnings per share were $3.19, surpassing expectations and showing a revenue increase of 5.4% year-over-year.

Sit Investment Associates Inc. reduced its stake in McDonald's Corporation (NYSE:MCD - Free Report) by 2.9% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 53,622 shares of the fast-food giant's stock after selling 1,608 shares during the period. Sit Investment Associates Inc.'s holdings in McDonald's were worth $16,750,000 as of its most recent filing with the Securities and Exchange Commission.

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

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the company. Redburn Atlantic reiterated 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. Erste Group Bank downgraded shares of McDonald's from a "strong-buy" rating to a "hold" rating in a report on Saturday, May 24th. Evercore ISI increased their target price on McDonald's from $350.00 to $360.00 and gave the stock an "outperform" rating in a research note on Friday, August 8th. Loop Capital cut McDonald's from a "buy" rating to a "hold" rating and reduced their price target for the company from $346.00 to $315.00 in a research report on Friday, June 6th. Finally, BMO Capital Markets reiterated an "outperform" rating and issued a $350.00 price objective (up previously from $345.00) on shares of McDonald's in a report on Thursday, August 7th. Two equities research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and thirteen have issued a buy rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $326.87.

McDonald's Trading Down 0.1%

Shares of NYSE:MCD traded down $0.19 on Friday, reaching $308.76. 3,416,469 shares of the company's stock were exchanged, compared to its average volume of 3,546,982. The company has a fifty day moving average of $298.06 and a 200-day moving average of $304.97. McDonald's Corporation has a twelve month low of $274.70 and a twelve month high of $326.32. The company has a market capitalization of $220.33 billion, a price-to-earnings ratio of 26.46, a PEG ratio of 3.15 and a beta of 0.52.

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 (EPS) for the quarter, topping analysts' consensus estimates 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 firm had revenue of $6.84 billion for the quarter, compared to analyst estimates of $6.68 billion. During the same quarter in the prior year, the business posted $2.97 EPS. The business's revenue was up 5.4% compared to the same quarter last year. As a group, equities research analysts forecast 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 will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be given a dividend of $1.77 per share. The ex-dividend date is Tuesday, September 2nd. This represents a $7.08 annualized dividend and a dividend yield of 2.3%. McDonald's's dividend payout ratio (DPR) is currently 60.67%.

Insider Buying and Selling

In related news, insider Joseph M. Erlinger sold 939 shares of the stock in a transaction that occurred on Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total transaction of $281,221.11. Following the sale, the insider owned 9,283 shares in the company, valued at approximately $2,780,165.67. This trade represents a 9.19% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CMO Edith Morgan Flatley sold 976 shares of the stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $303.50, for a total transaction of $296,216.00. Following the sale, the chief marketing officer owned 7,882 shares in the company, valued at $2,392,187. This represents a 11.02% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 7,280 shares of company stock worth $2,215,178. Corporate insiders own 0.25% of the company's stock.

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.