McDonald's (NYSE:MCD) Price Target Raised to $360.00

Key Points

• Evercore ISI has raised its price target for McDonald's stock from $350 to $360, indicating a potential upside of 16.87% from the previous close.
• McDonald's reported quarterly earnings of $3.19 per share, beating estimates and showing a 5.4% year-over-year revenue increase to $6.84 billion.
• Insider selling includes Desiree Ralls-Morrison selling 2,487 shares for nearly $770,970, representing a significant decrease in ownership.

McDonald's (NYSE:MCD - Free Report) had its target price lifted by Evercore ISI from $350.00 to $360.00 in a research note published on Friday morning,Benzinga reports. Evercore ISI currently has an outperform rating on the fast-food giant's stock.

Other research analysts have also issued research reports about the company. Erste Group Bank lowered McDonald's from a "strong-buy" rating to a "hold" rating in a research report on Saturday, May 24th. TD Securities reissued a "hold" rating and issued a $305.00 price objective on shares of McDonald's in a research note on Thursday, June 5th. Loop Capital downgraded shares of McDonald's from a "buy" rating to a "hold" rating and decreased their price objective for the stock from $346.00 to $315.00 in a research note on Friday, June 6th. Northcoast Research downgraded shares of McDonald's from a "buy" rating to a "neutral" rating in a research note on Tuesday, May 6th. Finally, JPMorgan Chase & Co. raised their price objective on shares of McDonald's from $305.00 to $310.00 and gave the stock an "overweight" rating in a research note on Thursday. Two research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and thirteen have given a buy rating to the stock. Based on data from MarketBeat, McDonald's presently has an average rating of "Hold" and a consensus target price of $326.87.

McDonald's Stock Down 0.7%

MCD traded down $2.29 on Friday, hitting $305.62. The company had a trading volume of 2,621,959 shares, compared to its average volume of 3,681,905. The company has a market cap of $218.09 billion, a PE ratio of 26.19, a PEG ratio of 3.19 and a beta of 0.52. McDonald's has a 12-month low of $265.33 and a 12-month high of $326.32. The business's fifty day simple moving average is $298.57 and its 200 day simple moving average is $304.49.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 EPS for the quarter, topping the consensus estimate of $3.15 by $0.04. The company had revenue of $6.84 billion during the quarter, compared to analyst estimates of $6.68 billion. McDonald's had a negative return on equity of 225.52% and a net margin of 32.21%. The firm's revenue was up 5.4% on a year-over-year basis. During the same quarter last year, the business posted $2.97 earnings per share. On average, analysts anticipate that McDonald's will post 12.25 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 16th. Investors of record on Tuesday, September 2nd will be issued a dividend of $1.77 per share. This represents a $7.08 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Tuesday, September 2nd. McDonald's's dividend payout ratio (DPR) is presently 60.67%.

Insider Activity at McDonald's

In other McDonald's news, CMO Edith Morgan Flatley sold 1,000 shares of McDonald's stock in a transaction on Thursday, July 10th. The shares were sold at an average price of $300.00, for a total value of $300,000.00. Following the transaction, the chief marketing officer directly owned 8,858 shares of the company's stock, valued at approximately $2,657,400. The trade was a 10.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 939 shares of McDonald's stock in a transaction on Wednesday, July 23rd. The stock was sold at an average price of $299.49, for a total transaction of $281,221.11. Following the completion of the transaction, the insider directly owned 9,283 shares in the company, valued at $2,780,165.67. This represents a 9.19% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 7,280 shares of company stock valued at $2,215,178 over the last ninety days. 0.25% of the stock is owned by company insiders.

Hedge Funds Weigh In On McDonald's

Several institutional investors and hedge funds have recently bought and sold shares of the company. Financial Gravity Companies Inc. purchased a new position in McDonald's in the second quarter worth $29,000. Summitry LLC grew its holdings in McDonald's by 9.0% in the second quarter. Summitry LLC now owns 21,963 shares of the fast-food giant's stock worth $6,417,000 after purchasing an additional 1,806 shares during the last quarter. Rockefeller Capital Management L.P. grew its holdings in shares of McDonald's by 5.7% during the second quarter. Rockefeller Capital Management L.P. now owns 590,559 shares of the fast-food giant's stock valued at $172,544,000 after buying an additional 31,654 shares during the last quarter. Cornerstone Advisors LLC raised its stake in McDonald's by 139.2% in the 2nd quarter. Cornerstone Advisors LLC now owns 75,600 shares of the fast-food giant's stock worth $22,088,000 after acquiring an additional 44,000 shares during the last quarter. Finally, Citizens Financial Group Inc. RI lifted its position in McDonald's by 8.9% during the 2nd quarter. Citizens Financial Group Inc. RI now owns 30,515 shares of the fast-food giant's stock worth $8,915,000 after acquiring an additional 2,492 shares during the period. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald's Company Profile

McDonald's Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.