Wealth Enhancement Trust Services Inc. Invests $1.78 Million in McDonald's Corporation $MCD

Key Points

• Wealth Enhancement Trust Services acquired a new stake of 5,822 McDonald's shares in Q4, valued at approximately $1.78 million.
• Company insiders have been net sellers recently — the CEO sold 26,277 shares and the EVP 6,201 shares, with insiders selling 71,657 shares worth about $23.7 million over the last 90 days (insiders now own 0.25%).
• Analysts have a consensus "Hold" rating with a $339.69 price target despite several firms raising targets; McDonald's also beat quarterly EPS estimates ($3.12 vs. $3.05) and pays a $1.86 quarterly dividend (2.4% yield).

Wealth Enhancement Trust Services Inc. acquired a new stake in McDonald's Corporation (NYSE:MCD - Free Report) in the 4th quarter, according to the company in its most recent 13F filing with the SEC. The firm acquired 5,822 shares of the fast-food giant's stock, valued at approximately $1,779,000.

A number of other hedge funds and other institutional investors have also modified their holdings of MCD. Global X Japan Co. Ltd. lifted its stake in McDonald's by 236.7% in the 3rd quarter. Global X Japan Co. Ltd. now owns 6,502 shares of the fast-food giant's stock valued at $1,976,000 after purchasing an additional 4,571 shares during the last quarter. D.A. Davidson & CO. raised its stake in McDonald's by 2.7% in the third quarter. D.A. Davidson & CO. now owns 143,492 shares of the fast-food giant's stock valued at $43,606,000 after buying an additional 3,774 shares during the period. Regent Peak Wealth Advisors LLC bought a new stake in McDonald's in the third quarter valued at approximately $1,120,000. Synergy Asset Management LLC boosted its stake in shares of McDonald's by 317.2% during the 3rd quarter. Synergy Asset Management LLC now owns 19,079 shares of the fast-food giant's stock worth $5,691,000 after acquiring an additional 14,506 shares during the period. Finally, National Pension Service increased its holdings in shares of McDonald's by 2.5% during the 3rd quarter. National Pension Service now owns 1,533,015 shares of the fast-food giant's stock worth $465,868,000 after acquiring an additional 37,744 shares during the last quarter. Institutional investors and hedge funds own 70.29% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the stock. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of McDonald's in a research report on Wednesday, January 28th. JPMorgan Chase & Co. raised their target price on shares of McDonald's from $305.00 to $325.00 and gave the stock an "overweight" rating in a research note on Tuesday, February 24th. Mizuho upped their price target on shares of McDonald's from $300.00 to $325.00 and gave the company a "neutral" rating in a research note on Friday, February 6th. Wells Fargo & Company increased their price target on shares of McDonald's from $345.00 to $355.00 and gave the company an "overweight" rating in a report on Thursday, February 12th. Finally, Robert W. Baird set a $335.00 price objective on shares of McDonald's in a research report on Thursday, February 12th. Seventeen equities research analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, McDonald's presently has a consensus rating of "Hold" and a consensus price target of $339.69.

Insider Activity

In other news, EVP Jonathan Banner sold 6,201 shares of the business's stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $333.29, for a total value of $2,066,731.29. Following the completion of the transaction, the executive vice president directly owned 2,291 shares in the company, valued at approximately $763,567.39. The trade was a 73.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Christopher J. Kempczinski sold 26,277 shares of the company's stock in a transaction that occurred on Thursday, February 12th. The stock was sold at an average price of $331.35, for a total transaction of $8,706,883.95. Following the sale, the chief executive officer directly owned 22,900 shares of the company's stock, valued at approximately $7,587,915. This trade represents a 53.43% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 71,657 shares of company stock valued at $23,723,307 in the last 90 days. 0.25% of the stock is owned by corporate insiders.

McDonald's Price Performance

Shares of NYSE MCD opened at $311.78 on Friday. The business has a fifty day moving average price of $319.62 and a two-hundred day moving average price of $311.82. The stock has a market capitalization of $221.63 billion, a PE ratio of 26.09, a P/E/G ratio of 2.73 and a beta of 0.53. McDonald's Corporation has a fifty-two week low of $283.47 and a fifty-two week high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last released its earnings results on Wednesday, February 11th. The fast-food giant reported $3.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.05 by $0.07. McDonald's had a negative return on equity of 343.90% and a net margin of 31.85%.The company had revenue of $7.01 billion for the quarter, compared to analyst estimates of $6.81 billion. During the same period in the prior year, the firm posted $2.83 EPS. McDonald's's quarterly revenue was up 9.7% on a year-over-year basis. On average, equities analysts expect that McDonald's Corporation will post 12.25 EPS for the current year.

McDonald's Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, March 17th. Shareholders of record on Tuesday, March 3rd were paid a dividend of $1.86 per share. This represents a $7.44 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date was Tuesday, March 3rd. McDonald's's dividend payout ratio is presently 62.26%.

McDonald's Company 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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