McDonald's (NYSE:MCD) Price Target Lowered to $350.00 at BTIG Research

Key Points

• BTIG Research cut its price target on McDonald’s from $370 to $350 but kept a buy rating, implying about 33% upside from the current price.
• McDonald’s stock was trading around $262.70, below both its 50-day and 200-day moving averages, with a market cap of about $186.65 billion.
• Recent earnings topped estimates, with EPS of $2.83 versus $2.74 expected and revenue of $6.52 billion, while analysts overall still rate the stock Moderate Buy with an average target of $334.32.

McDonald's (NYSE:MCD - Get Free Report) had its target price dropped by stock analysts at BTIG Research from $370.00 to $350.00 in a research note issued to investors on Friday,Benzinga reports. The firm currently has a "buy" rating on the fast-food giant's stock. BTIG Research's price objective indicates a potential upside of 33.23% from the company's current price.

MCD has been the subject of a number of other reports. Barclays cut their target price on McDonald's from $380.00 to $350.00 and set an "overweight" rating for the company in a research note on Friday, May 8th. Tigress Financial upped their price objective on McDonald's from $385.00 to $390.00 and gave the stock a "buy" rating in a report on Friday, July 17th. Rothschild & Co Redburn upgraded McDonald's from a "sell" rating to a "neutral" rating and increased their price objective for the stock from $260.00 to $306.00 in a research report on Thursday, April 23rd. Citigroup reduced their target price on McDonald's from $375.00 to $335.00 and set a "buy" rating for the company in a report on Wednesday, July 15th. Finally, Deutsche Bank Aktiengesellschaft set a $325.00 target price on shares of McDonald's in a research report on Thursday, July 9th. Fifteen analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average price target of $334.32.

McDonald's Stock Performance

MCD stock opened at $262.70 on Friday. The stock has a market capitalization of $186.65 billion, a PE ratio of 21.66, a price-to-earnings-growth ratio of 2.83 and a beta of 0.41. The company has a fifty day moving average of $276.23 and a 200-day moving average of $299.11. McDonald's has a one year low of $260.96 and a one year high of $341.75.

McDonald's (NYSE:MCD - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.74 by $0.09. McDonald's had a net margin of 31.62% and a negative return on equity of 442.10%. 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 company posted $2.67 earnings per share. The firm's revenue for the quarter was up 9.4% on a year-over-year basis. Equities analysts forecast that McDonald's will post 12.86 earnings per share for the current fiscal year.

Insider Activity

In other McDonald's news, EVP Desiree Ralls-Morrison sold 2,763 shares of McDonald's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the transaction, the executive vice president owned 6,268 shares in the company, valued at $1,744,760.48. This trade represents a 30.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Joseph M. Erlinger sold 5,252 shares of McDonald's stock in a transaction on 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 completion of the transaction, 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. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 8,348 shares of company stock worth $2,355,634 over the last quarter. 0.26% of the stock is currently owned by company insiders.

Institutional Trading of McDonald's

Several large investors have recently bought and sold shares of the company. Norges Bank purchased a new position in McDonald's in the fourth quarter valued at about $2,890,438,000. Diamant Asset Management Inc. grew its position in shares of McDonald's by 30,979.0% during the first quarter. Diamant Asset Management Inc. now owns 2,596,340 shares of the fast-food giant's stock worth $806,917,000 after buying an additional 2,587,986 shares in the last quarter. J. Stern & Co. LLP increased its stake in shares of McDonald's by 9,867.5% in the fourth quarter. J. Stern & Co. LLP now owns 2,541,008 shares of the fast-food giant's stock worth $776,608,000 after buying an additional 2,515,515 shares during the last quarter. Viking Global Investors LP boosted its stake in McDonald's by 171.7% during the 2nd quarter. Viking Global Investors LP now owns 3,125,432 shares of the fast-food giant's stock valued at $913,157,000 after acquiring an additional 1,974,998 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership grew its holdings in McDonald's by 49.9% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 3,104,337 shares of the fast-food giant's stock worth $948,779,000 after acquiring an additional 1,033,041 shares in the last quarter. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.