McDonald's (NYSE:MCD) Stock Price Expected to Rise, TD Cowen Analyst Says

Key Points

• TD Cowen has raised its price target for McDonald's (NYSE:MCD) from $305.00 to $315.00, indicating a potential upside of 2.45% from its current stock price and maintaining a "hold" rating.
• McDonald's recently reported quarterly earnings of $3.19 EPS, surpassing analysts' expectations of $3.15, with revenue of $6.84 billion, up 5.4% compared to the previous year.
• Institutional investors collectively own 70.29% of McDonald's stock, with several firms recently increasing their stakes during the fourth quarter.

McDonald's (NYSE:MCD - Get Free Report) had its price target increased by investment analysts at TD Cowen from $305.00 to $315.00 in a report released on Wednesday,Benzinga reports. The firm currently has a "hold" rating on the fast-food giant's stock. TD Cowen's target price would indicate a potential upside of 3.07% from the stock's previous close.

A number of other equities research analysts have also issued reports on the stock. Morgan Stanley upped their price objective on shares of McDonald's from $324.00 to $326.00 and gave the company an "equal weight" rating in a report on Monday, July 14th. Loop Capital lowered shares of McDonald's from a "buy" rating to a "hold" rating and dropped their price objective for the company from $346.00 to $315.00 in a report on Friday, June 6th. Argus lowered shares of McDonald's from a "buy" rating to a "hold" rating in a report on Friday, June 13th. Piper Sandler upped their price objective on shares of McDonald's from $292.00 to $314.00 and gave the company a "neutral" rating in a report on Friday, May 2nd. Finally, BTIG Research reissued a "neutral" rating on shares of McDonald's in a report on Tuesday, April 22nd. Two investment analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and thirteen have given a buy rating to the company's stock. According to MarketBeat, McDonald's presently has an average rating of "Hold" and an average target price of $326.87.

McDonald's Stock Down 0.7%

Shares of McDonald's stock traded down $2.29 during trading hours on Wednesday, reaching $305.62. 2,621,959 shares of the company's stock were exchanged, compared to its average volume of 3,681,905. McDonald's has a 1 year low of $265.33 and a 1 year high of $326.32. The company has a market capitalization of $218.09 billion, a P/E ratio of 26.19, a price-to-earnings-growth ratio of 3.21 and a beta of 0.52. The business has a fifty day moving average of $298.57 and a two-hundred day moving average of $304.33.

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

Insider Activity

In other news, CMO Edith Morgan Flatley sold 1,000 shares of the firm's stock in a transaction that occurred 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 completion of the transaction, the chief marketing officer owned 8,858 shares of the company's stock, valued at approximately $2,657,400. This trade represents a 10.14% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 939 shares of the firm's stock in a transaction that occurred on Wednesday, July 23rd. The shares were 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 of the company's stock, valued at approximately $2,780,165.67. The trade was a 9.19% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 7,280 shares of company stock valued at $2,215,178. 0.25% of the stock is currently owned by company insiders.

Institutional Trading of McDonald's

Hedge funds have recently added to or reduced their stakes in the company. Red Door Wealth Management LLC raised its holdings in McDonald's by 1.9% in the first quarter. Red Door Wealth Management LLC now owns 5,724 shares of the fast-food giant's stock valued at $1,788,000 after acquiring an additional 109 shares in the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd raised its holdings in McDonald's by 5.6% during the first quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 345,319 shares of the fast-food giant's stock worth $107,867,000 after purchasing an additional 18,393 shares in the last quarter. Sagespring Wealth Partners LLC raised its holdings in McDonald's by 22.9% during the first quarter. Sagespring Wealth Partners LLC now owns 17,226 shares of the fast-food giant's stock worth $5,381,000 after purchasing an additional 3,212 shares in the last quarter. Segment Wealth Management LLC raised its holdings in McDonald's by 1.7% during the first quarter. Segment Wealth Management LLC now owns 54,672 shares of the fast-food giant's stock worth $17,078,000 after purchasing an additional 937 shares in the last quarter. Finally, Great Waters Wealth Management acquired a new stake in McDonald's during the first quarter worth approximately $864,000. Institutional investors and hedge funds own 70.29% of the company's stock.

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.