Y Intercept Hong Kong Ltd Sells 6,835 Shares of McDonald's Corporation $MCD

Key Points

• Y Intercept Hong Kong Ltd reduced its McDonald’s position by 25.6% in the first quarter, selling 6,835 shares and leaving it with 19,844 shares worth about $6.17 million.
• Analysts remain mostly positive on McDonald’s, with a consensus rating of “Moderate Buy” and an average price target of $335.70, even as several firms trimmed their individual targets.
• McDonald’s recently beat quarterly earnings and revenue expectations and continues to support investors with a 2.7% dividend yield, though concerns remain about margin pressure, weaker foot traffic, and franchisee strain.

Y Intercept Hong Kong Ltd cut its stake in shares of McDonald's Corporation (NYSE:MCD - Free Report) by 25.6% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 19,844 shares of the fast-food giant's stock after selling 6,835 shares during the period. Y Intercept Hong Kong Ltd's holdings in McDonald's were worth $6,167,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors and hedge funds have also recently modified their holdings of the company. Your Advocates Ltd. LLP bought a new stake in McDonald's in the fourth quarter worth $27,000. Park Place Capital Corp increased its position in McDonald's by 95.7% during the fourth quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant's stock valued at $28,000 after acquiring an additional 45 shares during the last quarter. IFC & Insurance Marketing Inc. bought a new position in McDonald's during the fourth quarter valued at $29,000. Abound Financial LLC purchased a new stake in shares of McDonald's in the fourth quarter valued at $30,000. Finally, DecisionPoint Financial LLC raised its stake in shares of McDonald's by 1,616.7% in the fourth quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock valued at $31,000 after acquiring an additional 97 shares during the period. Hedge funds and other institutional investors own 70.29% of the company's stock.

Key Stories Impacting McDonald's

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

• Positive Sentiment: McDonald's stock was lifted by a UBS note highlighting it as an attractive defensive dividend name, helping support the shares as investors rotate toward stable cash-generating companies. Why McDonald's (MCD) Stock Is Up Today
• Positive Sentiment: McDonald's continues to appeal to income investors after its latest quarterly dividend, reinforcing its reputation as one of the most reliable dividend payers in the Dow. Despite Franchisees Struggling, McDonald's Dividend Keeps Rising
• Positive Sentiment: New menu and promotional chatter, including Happy Meal tie-ins, free fries offers, and added chicken items, could help drive customer engagement and traffic. BT21 Toys Teases Coming To McDonald's Happy Meals On July 14
• Neutral Sentiment: McDonald's is also getting broader media attention around its brand history and restaurant expansion plans, but these items are not likely to move the stock much on their own. The McDonald's Big Mac jingle from the mid '70s that still lives in our heads
• Neutral Sentiment: McDonald's hired a new development executive to support its NEXT strategy, which signals execution progress but is still more of a long-term operating update than an immediate stock catalyst. McDonald’s taps Raising Cane’s vet to lead development
• Negative Sentiment: A Trefis report said McDonald's is facing a real risk from trying to win over budget-conscious customers, with franchisee strain from inflation and weak consumer sentiment weighing on the system. The Real Risk Squeezing McDonald's Stock
• Negative Sentiment: Another recent analysis said MCD is near 52-week lows because of margin pressure at franchisees and softer foot traffic, which continues to limit enthusiasm despite the dividend appeal. Should You Buy McDonald’s (MCD) At 52-Week Lows

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Wells Fargo & Company lowered their target price on shares of McDonald's from $355.00 to $320.00 and set an "overweight" rating for the company in a report on Friday, May 8th. Morgan Stanley set a $331.00 price objective on shares of McDonald's in a research report on Friday, May 8th. JPMorgan Chase & Co. decreased their price objective on shares of McDonald's from $325.00 to $305.00 and set an "overweight" rating for the company in a research note on Monday, May 11th. Cfra upgraded McDonald's to a "buy" rating in a research report on Friday, May 8th. Finally, Evercore set a $350.00 target price on McDonald's in a research note on Friday, May 8th. Sixteen research analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, McDonald's presently has a consensus rating of "Moderate Buy" and an average price target of $335.70.

McDonald's Stock Down 0.1%

McDonald's stock opened at $280.48 on Friday. McDonald's Corporation has a twelve month low of $264.53 and a twelve month high of $341.75. The business has a fifty day moving average of $280.25 and a two-hundred day moving average of $303.22. The firm has a market cap of $199.29 billion, a P/E ratio of 23.12, a P/E/G ratio of 2.80 and a beta of 0.41.

McDonald's (NYSE:MCD - Get Free Report) last issued its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping analysts' consensus estimates 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 firm had revenue of $6.52 billion during the quarter, compared to analysts' expectations of $6.47 billion. During the same period in the prior year, the business posted $2.67 EPS. The firm's quarterly revenue was up 9.4% on a year-over-year basis. Equities analysts expect that McDonald's Corporation will post 12.93 earnings per share for the current year.

McDonald's Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Shareholders of record on Tuesday, June 2nd were given a dividend of $1.86 per share. This represents a $7.44 annualized dividend and a dividend yield of 2.7%. The ex-dividend date of this dividend was Tuesday, June 2nd. McDonald's's dividend payout ratio is presently 61.34%.

Insider Transactions 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 sale, the insider directly owned 7,734 shares in the company, valued at approximately $2,198,930.88. This trade represents a 40.44% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction that occurred on Thursday, May 28th. The stock was sold at an average price of $278.36, for a total transaction of $769,108.68. Following the completion of the transaction, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. The trade was a 30.59% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 11,307 shares of company stock worth $3,262,622 over the last 90 days. Company insiders own 0.26% of the company's stock.

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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