McDonald's (NYSE:MCD) Price Target Lowered to $340.00 at UBS Group

Key Points

• UBS Group lowered McDonald’s price target from $365 to $340 while maintaining a “buy” rating, implying roughly 28.6% upside from the stock’s $264.46 price.
• Analyst sentiment remains positive overall: McDonald’s has a consensus “Moderate Buy” rating, with 15 Buy and 12 Hold recommendations and an average price target of $333.32.
• McDonald’s recently exceeded quarterly expectations, reporting $2.83 in EPS and $6.52 billion in revenue, while revenue rose 9.4% year over year; insiders sold a combined $2.36 million of shares during the quarter.

McDonald's (NYSE:MCD - Get Free Report) had its price objective decreased by analysts at UBS Group from $365.00 to $340.00 in a report issued on Monday. The brokerage presently has a "buy" rating on the fast-food giant's stock. UBS Group's price objective points to a potential upside of 28.57% from the company's current price.

Other equities analysts also recently issued research reports about the company. Tigress Financial lifted their price objective on McDonald's from $385.00 to $390.00 and gave the company a "buy" rating in a research report on Friday, July 17th. Citigroup lowered their target price on McDonald's from $375.00 to $335.00 and set a "buy" rating for the company in a research note on Wednesday, July 15th. Robert W. Baird set a $305.00 price target on McDonald's in a report on Thursday, May 7th. Weiss Ratings downgraded shares of McDonald's from a "hold (c+)" rating to a "hold (c)" rating in a research report on Tuesday, June 23rd. Finally, Cfra raised shares of McDonald's to a "buy" rating in a report on Friday, May 8th. Fifteen analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $333.32.

McDonald's Stock Down 0.1%

NYSE:MCD opened at $264.46 on Monday. The firm has a market cap of $187.90 billion, a PE ratio of 21.80, a price-to-earnings-growth ratio of 2.84 and a beta of 0.41. McDonald's has a 12 month low of $260.96 and a 12 month high of $341.75. The company's 50-day moving average price is $275.99 and its two-hundred day moving average price is $298.86.

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, beating analysts' consensus estimates of $2.74 by $0.09. The company had revenue of $6.52 billion during the quarter, compared to analysts' expectations of $6.47 billion. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. McDonald's's quarterly revenue was up 9.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.67 earnings per share. On average, research analysts expect that McDonald's will post 12.86 EPS for the current fiscal year.

Insider Transactions at McDonald's

In other news, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction that occurred on Wednesday, June 10th. The shares were sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the completion of the sale, the insider owned 7,734 shares in the company, valued at $2,198,930.88. The trade was a 40.44% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Desiree Ralls-Morrison sold 2,763 shares of the business'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 sale, the executive vice president directly owned 6,268 shares of the company's stock, valued at approximately $1,744,760.48. This trade represents a 30.59% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 8,348 shares of company stock valued at $2,355,634. Corporate insiders own 0.26% of the company's stock.

Hedge Funds Weigh In On McDonald's

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Your Advocates Ltd. LLP acquired a new position in McDonald's during the fourth quarter worth $27,000. IFC & Insurance Marketing Inc. bought a new position in McDonald's in the fourth quarter valued at approximately $29,000. Abound Financial LLC acquired a new position in shares of McDonald's during the 4th quarter worth approximately $30,000. Purpose Unlimited Inc. acquired a new position in shares of McDonald's during the 4th quarter worth approximately $31,000. Finally, DecisionPoint Financial LLC raised its stake in shares of McDonald's by 1,616.7% during the 4th quarter. DecisionPoint Financial LLC now owns 103 shares of the fast-food giant's stock worth $31,000 after purchasing an additional 97 shares in the last quarter. Institutional investors own 70.29% of the company's stock.

About McDonald's

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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