Sunpointe LLC Decreases Stock Holdings in McDonald's Corporation (NYSE:MCD)

Key Points

• Sunpointe LLC has reduced its stake in McDonald's Corporation (NYSE:MCD) by 42.4%, now holding 1,215 shares valued at $379,000 after selling 894 shares during the first quarter.
• Several hedge funds increased their holdings in McDonald's, with Geode Capital Management boosting its stake by 1.0% and Capital Research Global Investors raising theirs by 5.2% in the fourth quarter.
• McDonald's announced a quarterly dividend of $1.77 per share to be paid on September 16th, representing a 2.37% yield and a payout ratio of approximately 62.49%.

Sunpointe LLC lowered its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 42.4% during the first quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 1,215 shares of the fast-food giant's stock after selling 894 shares during the period. Sunpointe LLC's holdings in McDonald's were worth $379,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in MCD. Mascagni Wealth Management Inc. acquired a new stake in McDonald's in the 4th quarter valued at approximately $25,000. Pinney & Scofield Inc. acquired a new stake in shares of McDonald's in the 4th quarter valued at $29,000. GKV Capital Management Co. Inc. acquired a new position in McDonald's in the fourth quarter valued at about $30,000. Abound Financial LLC acquired a new position in McDonald's in the first quarter valued at about $30,000. Finally, Copia Wealth Management acquired a new position in McDonald's during the 4th quarter worth about $31,000. Institutional investors own 70.29% of the company's stock.

McDonald's Stock Performance

MCD stock traded down $2.01 during midday trading on Thursday, hitting $301.61. 1,253,158 shares of the company's stock were exchanged, compared to its average volume of 3,579,977. McDonald's Corporation has a one year low of $262.40 and a one year high of $326.32. The stock's fifty day moving average price is $299.96 and its 200-day moving average price is $303.25. The company has a market cap of $215.66 billion, a PE ratio of 26.61, a price-to-earnings-growth ratio of 3.17 and a beta of 0.53.

McDonald's (NYSE:MCD - Get Free Report) last announced its earnings results on Thursday, May 1st. The fast-food giant reported $2.67 earnings per share for the quarter, hitting analysts' consensus estimates of $2.67. The company had revenue of $5.96 billion for the quarter, compared to analyst estimates of $6.17 billion. McDonald's had a negative return on equity of 195.27% and a net margin of 31.75%. The firm's quarterly revenue was down 3.5% compared to the same quarter last year. During the same quarter last year, the company earned $2.70 earnings per share. On average, analysts expect that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Stockholders of record on Tuesday, September 2nd will be issued 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 2.35%. McDonald's's dividend payout ratio is presently 62.49%.

Analyst Ratings Changes

MCD has been the topic of a number of recent research reports. KeyCorp dropped their target price on McDonald's from $340.00 to $325.00 and set an "overweight" rating on the stock in a research report on Monday, June 30th. Barclays boosted their price target on McDonald's from $347.00 to $355.00 and gave the company an "overweight" rating in a research note on Friday, May 2nd. BTIG Research reissued a "neutral" rating on shares of McDonald's in a report on Tuesday, April 22nd. Morgan Stanley raised their price objective on shares of McDonald's from $324.00 to $326.00 and gave the company an "equal weight" rating in a report on Monday, July 14th. Finally, Melius began coverage on shares of McDonald's in a research note on Monday, July 14th. They issued a "sell" rating and a $250.00 price target for the company. Two investment 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's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $323.39.

Insider Buying and Selling at McDonald's

In related news, CMO Edith Morgan Flatley sold 1,000 shares of the stock in a transaction on Thursday, July 10th. The stock was sold at an average price of $300.00, for a total value of $300,000.00. Following the transaction, the chief marketing officer owned 8,858 shares of the company's stock, valued at $2,657,400. This represents a 10.14% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Joseph M. Erlinger sold 939 shares of the stock in a transaction dated Wednesday, July 23rd. The shares were sold at an average price of $299.49, for a total value of $281,221.11. Following the transaction, the insider owned 9,283 shares in the company, valued at $2,780,165.67. This trade represents a 9.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 3,817 shares of company stock worth $1,147,992. Company insiders own 0.25% of the company's stock.

McDonald's Company 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.