McDonald's (NYSE:MCD) Price Target Lowered to $315.00 at KeyCorp

Key Points

• KeyCorp lowered its price target on McDonald's from $330 to $315, while keeping an overweight rating on the stock. The new target still implies about 16.6% upside from the current share price.
• McDonald's recent quarterly results beat expectations, posting $2.83 EPS versus the $2.74 estimate and revenue of $6.52 billion, up 9.4% year over year. Analysts now expect full-year earnings of $12.93 per share.
• Analyst sentiment remains mixed overall: the stock has a Moderate Buy consensus with an average price target of $335.70. Recent insider selling was also noted, though institutional investors continue to hold a large majority of shares.

McDonald's (NYSE:MCD - Get Free Report) had its price objective lowered by research analysts at KeyCorp from $330.00 to $315.00 in a report issued on Monday,Benzinga reports. The brokerage presently has an "overweight" rating on the fast-food giant's stock. KeyCorp's price objective points to a potential upside of 16.58% from the stock's current price.

Several other equities research analysts have also recently weighed in on the company. Weiss Ratings cut McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. Tigress Financial raised their price objective on shares of McDonald's from $360.00 to $385.00 and gave the company a "buy" rating in a research report on Friday, March 6th. Erste Group Bank cut shares of McDonald's from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. TD Cowen reaffirmed a "hold" rating on shares of McDonald's in a report on Friday, June 12th. Finally, Wells Fargo & Company lowered their target price on shares of McDonald's from $355.00 to $320.00 and set an "overweight" rating on the stock in a research note on Friday, May 8th. Sixteen analysts have rated the stock with a Buy rating, thirteen have given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $335.70.

McDonald's Price Performance

McDonald's stock opened at $270.21 on Monday. The firm has a market capitalization of $191.98 billion, a P/E ratio of 22.28, a PEG ratio of 2.69 and a beta of 0.41. McDonald's has a one year low of $264.53 and a one year high of $341.75. The business has a fifty day moving average price of $283.43 and a 200-day moving average price of $304.51.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, beating 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 company had revenue of $6.52 billion for the quarter, compared to analyst estimates of $6.47 billion. During the same period in the previous year, the company posted $2.67 EPS. The firm's revenue for the quarter was up 9.4% compared to the same quarter last year. Sell-side analysts expect that McDonald's will post 12.93 earnings per share for the current fiscal year.

Insider Buying and Selling at McDonald's

In related news, insider Joseph M. Erlinger sold 5,252 shares of the stock in a transaction on Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total value of $1,493,248.64. Following the transaction, the insider owned 7,734 shares of the company's stock, valued at $2,198,930.88. This represents a 40.44% 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, EVP Desiree Ralls-Morrison sold 2,763 shares of the firm's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the sale, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. The trade was a 30.59% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 11,307 shares of company stock worth $3,262,622. Corporate insiders own 0.26% of the company's stock.

Hedge Funds Weigh In On McDonald's

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Ballast Advisors LLC increased its position in shares of McDonald's by 6.8% during the 1st quarter. Ballast Advisors LLC now owns 781 shares of the fast-food giant's stock valued at $243,000 after purchasing an additional 50 shares during the last quarter. Sapient Capital LLC lifted its position in McDonald's by 8.6% in the 1st quarter. Sapient Capital LLC now owns 9,935 shares of the fast-food giant's stock worth $3,088,000 after buying an additional 789 shares during the last quarter. S&A Financial Services Inc. purchased a new stake in McDonald's in the first quarter worth approximately $202,000. Curry Webb Wealth Management LLC purchased a new stake in McDonald's in the first quarter worth approximately $444,000. Finally, FAS Wealth Partners Inc. grew its position in McDonald's by 1.4% during the first quarter. FAS Wealth Partners Inc. now owns 9,469 shares of the fast-food giant's stock valued at $2,943,000 after acquiring an additional 135 shares during the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

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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