McDonald's Corporation (NYSE:MCD) Stock Position Lessened by Vestcor Inc

Key Points

• Vestcor Inc reduced its holdings in McDonald's by 2.5% during the 1st quarter, now owning 47,115 shares valued at approximately $14.7 million.
• A number of institutions, including Granite Bay Wealth Management and CVA Family Office, increased their stakes in McDonald's, highlighting a generally positive view among some investors.
• Analysts have mixed ratings on McDonald's stock, with Goldman Sachs upgrading it to a "buy" and setting a price target of $345, while others have issued "hold" and "sell" ratings.

Vestcor Inc lessened its holdings in McDonald's Corporation (NYSE:MCD - Free Report) by 2.5% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 47,115 shares of the fast-food giant's stock after selling 1,211 shares during the period. Vestcor Inc's holdings in McDonald's were worth $14,717,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. Mascagni Wealth Management Inc. bought a new position in McDonald's during the fourth quarter valued at about $25,000. Pinney & Scofield Inc. acquired a new stake in McDonald's during the fourth quarter worth about $29,000. GKV Capital Management Co. Inc. acquired a new stake in McDonald's during the fourth quarter worth about $30,000. Abound Financial LLC acquired a new stake in McDonald's during the first quarter worth about $30,000. Finally, Copia Wealth Management acquired a new stake in McDonald's during the fourth quarter valued at approximately $31,000. Institutional investors and hedge funds own 70.29% of the company's stock.

McDonald's Stock Performance

MCD stock traded down $3.31 during midday trading on Thursday, reaching $300.30. 3,619,632 shares of the company were exchanged, compared to its average volume of 3,222,961. McDonald's Corporation has a 1-year low of $262.40 and a 1-year high of $326.32. The stock's 50-day simple moving average is $299.68 and its 200 day simple moving average is $303.37. The company has a market cap of $214.72 billion, a price-to-earnings ratio of 26.50, a price-to-earnings-growth ratio of 3.18 and a beta of 0.53.

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

McDonald's Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be paid a $1.77 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $7.08 annualized dividend and a yield of 2.4%. McDonald's's payout ratio is presently 62.49%.

Analyst Upgrades and Downgrades

Several research analysts have issued reports on MCD shares. Morgan Stanley upped their price objective on McDonald's from $324.00 to $326.00 and gave the stock an "equal weight" rating in a report on Monday, July 14th. Truist Financial increased their price target on McDonald's from $350.00 to $356.00 and gave the company a "buy" rating in a research note on Wednesday, July 9th. Robert W. Baird increased their price target on McDonald's from $300.00 to $315.00 and gave the company a "neutral" rating in a research note on Friday, May 2nd. BMO Capital Markets reissued an "outperform" rating and issued a $345.00 price target (up previously from $340.00) on shares of McDonald's in a research note on Monday, May 5th. Finally, Northcoast Research downgraded McDonald's from a "buy" rating to a "neutral" rating in a research note on Tuesday, May 6th. Two research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and thirteen have given a buy rating to the company's stock. According to data from MarketBeat, McDonald's currently has a consensus rating of "Hold" and a consensus target price of $323.39.

Insider Activity

In other news, CMO Edith Morgan Flatley sold 1,000 shares of the company's stock in a transaction dated 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 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 position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Joseph M. Erlinger sold 939 shares of the business's stock in a transaction dated Wednesday, July 23rd. The stock was sold at an average price of $299.49, for a total value of $281,221.11. Following the sale, the insider owned 9,283 shares of the company's stock, valued at $2,780,165.67. The trade was a 9.19% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 3,817 shares of company stock valued at $1,147,992 in the last three months. 0.25% of the stock is currently owned by corporate insiders.

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.