Truist Financial Issues Pessimistic Forecast for McDonald's (NYSE:MCD) Stock Price

Key Points

• Truist Financial has lowered McDonald's target price from $360.00 to $350.00, suggesting a potential upside of 15.13% based on the current stock price, while maintaining a "buy" rating.
• McDonald's reported earnings per share of $3.19 in its latest quarterly earnings, exceeding analysts’ estimates of $3.15, with a revenue of $6.84 billion.
• A majority of investment analysts rate McDonald's stock positively, with 11 analysts giving a "Buy" rating, 15 a "Hold" rating, and only 2 a "Sell," indicating strong market confidence in the company's performance.

McDonald's (NYSE:MCD - Get Free Report) had its target price lowered by equities researchers at Truist Financial from $360.00 to $350.00 in a research report issued on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the fast-food giant's stock. Truist Financial's target price would suggest a potential upside of 15.13% from the company's current price.

Several other research analysts have also commented on the company. Weiss Ratings reiterated a "buy (b)" rating on shares of McDonald's in a report on Wednesday, October 8th. BMO Capital Markets raised their price objective on shares of McDonald's from $350.00 to $360.00 and gave the stock an "outperform" rating in a research report on Thursday, September 4th. The Goldman Sachs Group raised shares of McDonald's from a "neutral" rating to a "buy" rating and set a $345.00 price target for the company in a research note on Thursday, July 10th. Piper Sandler upped their price objective on McDonald's from $314.00 to $325.00 and gave the company a "neutral" rating in a report on Thursday, August 7th. Finally, JPMorgan Chase & Co. lifted their target price on McDonald's from $305.00 to $310.00 and gave the company an "overweight" rating in a research report on Thursday, August 7th. Eleven investment analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $324.73.

McDonald's Trading Up 1.3%

MCD stock traded up $3.90 during mid-day trading on Tuesday, reaching $304.01. The company's stock had a trading volume of 1,693,327 shares, compared to its average volume of 3,492,791. The stock has a market cap of $216.94 billion, a PE ratio of 26.07, a P/E/G ratio of 3.12 and a beta of 0.50. McDonald's has a fifty-two week low of $276.53 and a fifty-two week high of $326.32. The company's 50 day moving average is $306.23 and its two-hundred day moving average is $305.64.

McDonald's (NYSE:MCD - Get Free Report) last released its quarterly earnings data on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share for the quarter, topping analysts' consensus estimates of $3.15 by $0.04. The company had revenue of $6.84 billion for 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 for the quarter was up 5.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.97 earnings per share. On average, analysts forecast that McDonald's will post 12.25 earnings per share for the current fiscal year.

Insider Transactions at McDonald's

In related news, EVP Desiree Ralls-Morrison sold 2,487 shares of the company's stock in a transaction dated Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total value of $770,970.00. Following the completion of the sale, the executive vice president directly owned 8,754 shares of the company's stock, valued at $2,713,740. This represents a 22.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Jonathan Banner sold 1,000 shares of the firm's stock in a transaction on Tuesday, August 19th. The stock was sold at an average price of $310.00, for a total transaction of $310,000.00. Following the transaction, the executive vice president directly owned 99 shares in the company, valued at $30,690. The trade was a 90.99% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 6,402 shares of company stock worth $1,973,407. 0.25% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Brighton Jones LLC raised its holdings in McDonald's by 21.6% during the fourth quarter. Brighton Jones LLC now owns 9,286 shares of the fast-food giant's stock worth $2,692,000 after purchasing an additional 1,649 shares in the last quarter. Revolve Wealth Partners LLC boosted its stake in shares of McDonald's by 2.8% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,942 shares of the fast-food giant's stock valued at $563,000 after buying an additional 52 shares in the last quarter. Quotient Wealth Partners LLC boosted its stake in shares of McDonald's by 10.9% in the first quarter. Quotient Wealth Partners LLC now owns 2,616 shares of the fast-food giant's stock valued at $817,000 after buying an additional 258 shares in the last quarter. SSA Swiss Advisors AG acquired a new stake in McDonald's in the first quarter valued at $175,000. Finally, GAMMA Investing LLC lifted its holdings in McDonald's by 25.3% in the first quarter. GAMMA Investing LLC now owns 11,198 shares of the fast-food giant's stock valued at $3,498,000 after acquiring an additional 2,261 shares during the period. Institutional investors and hedge funds own 70.29% of the company's stock.

About McDonald's

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.

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