Vertrix Wealth Management LLC Makes New $3.30 Million Investment in McDonald's Corporation $MCD

Key Points

• Vertrix Wealth Management opened a new position in McDonald’s, buying 10,617 shares worth about $3.3 million in the first quarter.
• Institutional ownership in McDonald’s remains very high, with several other large investors also adding or increasing stakes; overall, 70.29% of the stock is held by institutions.
• McDonald’s shares were trading near recent lows, but the company still posted a quarterly earnings and revenue beat, and it recently paid a $1.86 quarterly dividend that annualizes to a 2.8% yield.

Vertrix Wealth Management LLC acquired a new position in McDonald's Corporation (NYSE:MCD - Free Report) in the first quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor acquired 10,617 shares of the fast-food giant's stock, valued at approximately $3,300,000.

Several other institutional investors have also recently modified their holdings of the company. Norges Bank purchased a new stake in McDonald's in the fourth quarter worth approximately $2,890,438,000. Diamant Asset Management Inc. raised its stake in shares of McDonald's by 30,979.0% during the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock worth $806,917,000 after acquiring an additional 2,587,986 shares in the last quarter. J. Stern & Co. LLP raised its stake in shares of McDonald's by 9,867.5% during the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock worth $776,608,000 after acquiring an additional 2,515,515 shares in the last quarter. Viking Global Investors LP lifted its holdings in shares of McDonald's by 171.7% in the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant's stock worth $913,157,000 after acquiring an additional 1,974,998 shares during the last quarter. Finally, Franklin Resources Inc. boosted its stake in shares of McDonald's by 36.6% in the 3rd quarter. Franklin Resources Inc. now owns 4,396,837 shares of the fast-food giant's stock valued at $1,336,155,000 after purchasing an additional 1,179,244 shares in the last quarter. 70.29% of the stock is currently owned by institutional investors.

Insider Activity at McDonald's

In other news, insider Joseph M. Erlinger sold 5,252 shares of the firm's stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total value of $1,493,248.64. Following the completion of the sale, the insider directly owned 7,734 shares of the company's stock, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total transaction of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This represents a 30.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 11,307 shares of company stock worth $3,262,622 over the last three months. Insiders own 0.26% of the company's stock.

McDonald's News Roundup

Here are the key news stories impacting McDonald's this week:

• Positive Sentiment: McDonald’s is nearing Dividend King status, and its dividend yield has risen to nearly 2.8%, which may attract income-focused investors looking to accumulate shares at lower levels. This Wannabe Dividend King Had a Tough H1. Expect Some Relief in H2.
• Positive Sentiment: Wall Street brokerage sentiment remains constructive, with the average recommendation on McDonald’s still effectively a Buy, reinforcing the view that analysts see upside from current levels. Brokers Suggest Investing in McDonald's (MCD): Read This Before Placing a Bet
• Positive Sentiment: McDonald’s hired Bryan Brown as U.S. chief development officer, a move that could support domestic expansion and long-term growth. McDonald’s names Bryan Brown U.S. chief development officer
• Positive Sentiment: Articles highlighting McDonald’s stock as potentially having “hit bottom” may be encouraging bargain-hunting after the recent weakness. McDonald's Corp Stock May Have Hit Bottom - Ways to Play MCD Stock
• Neutral Sentiment: Promotions such as discounted Big Macs, FIFA collectibles, and menu nostalgia pieces may help brand engagement, but they are unlikely to move the stock materially on their own.
• Negative Sentiment: One article says McDonald’s remains close to 52-week lows because of margin pressure from franchises and weakening foot traffic, which is the main bearish narrative weighing on the shares. Should You Buy McDonald’s (MCD) At 52-Week Lows
• Negative Sentiment: Customer complaints about hidden upcharges and dissatisfaction with new menu items could add to concerns about pricing backlash and weaker consumer sentiment. McDonald’s customers furious to discover new hidden upcharge on classic menu item: ‘That’s really shady’

McDonald's Trading Down 0.2%

Shares of NYSE:MCD opened at $269.78 on Thursday. The company has a market cap of $191.68 billion, a price-to-earnings ratio of 22.24, a price-to-earnings-growth ratio of 2.69 and a beta of 0.41. The company has a 50-day moving average price of $281.07 and a 200-day moving average price of $303.64. McDonald's Corporation has a 12 month low of $264.53 and a 12 month high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last posted its earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.09. McDonald's had a negative return on equity of 442.10% and a net margin of 31.62%.The company had revenue of $6.52 billion for the quarter, compared to analysts' expectations of $6.47 billion. During the same period last year, the firm earned $2.67 earnings per share. McDonald's's quarterly revenue was up 9.4% on a year-over-year basis. As a group, research analysts forecast that McDonald's Corporation will post 12.93 EPS for the current fiscal year.

McDonald's Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 16th. Stockholders of record on Tuesday, June 2nd were given a $1.86 dividend. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Tuesday, June 2nd. McDonald's's dividend payout ratio (DPR) is currently 61.34%.

Analyst Ratings Changes

Several equities analysts recently commented on MCD shares. Evercore set a $350.00 target price on shares of McDonald's in a report on Friday, May 8th. Wells Fargo & Company lowered their target price on McDonald's from $355.00 to $320.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Rothschild & Co Redburn upgraded McDonald's from a "sell" rating to a "neutral" rating and increased their target price for the company from $260.00 to $306.00 in a report on Thursday, April 23rd. Cfra upgraded McDonald's to a "buy" rating in a research report on Friday, May 8th. Finally, Morgan Stanley set a $331.00 price target on McDonald's in a research note on Friday, May 8th. Sixteen analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, McDonald's currently has an average rating of "Moderate Buy" and an average target price of $335.70.

McDonald's Profile

McDonald's Corporation NYSE: MCD is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald's serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand's national and international expansion.

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