McDonald’s (NYSE:MCD) Trading Down 1.2% on Analyst Downgrade

McDonald’s Co. (NYSE:MCDGet Free Report) was down 1.2% on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $300.00 to $290.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. McDonald’s traded as low as $244.20 and last traded at $244.84. Approximately 1,198,293 shares were traded during mid-day trading, a decline of 65% from the average daily volume of 3,401,777 shares. The stock had previously closed at $247.85.

A number of other equities research analysts also recently commented on the stock. Morgan Stanley reduced their price objective on shares of McDonald’s from $327.00 to $320.00 and set an “overweight” rating for the company in a research report on Friday, April 12th. Argus reissued a “hold” rating on shares of McDonald’s in a research note on Monday, March 25th. Erste Group Bank reiterated a “hold” rating on shares of McDonald’s in a report on Wednesday, April 3rd. Truist Financial lowered their target price on shares of McDonald’s from $320.00 to $300.00 and set a “buy” rating for the company in a research note on Tuesday. Finally, Guggenheim dropped their price objective on shares of McDonald’s from $315.00 to $280.00 and set a “buy” rating for the company in a research note on Tuesday, July 2nd. Ten equities research analysts have rated the stock with a hold rating and twenty have given a buy rating to the company’s stock. According to MarketBeat.com, McDonald’s has an average rating of “Moderate Buy” and a consensus price target of $312.82.

Read Our Latest Research Report on MCD

Insider Transactions at McDonald’s

In other news, insider Joseph M. Erlinger sold 1,098 shares of the stock in a transaction dated Tuesday, April 23rd. The shares were sold at an average price of $276.64, for a total transaction of $303,750.72. Following the transaction, the insider now owns 16,977 shares of the company’s stock, valued at $4,696,517.28. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In related news, insider Joseph M. Erlinger sold 1,098 shares of the stock in a transaction dated Tuesday, April 23rd. The shares were sold at an average price of $276.64, for a total transaction of $303,750.72. Following the sale, the insider now owns 16,977 shares in the company, valued at $4,696,517.28. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Marion K. Gross sold 1,498 shares of the company’s stock in a transaction on Wednesday, July 3rd. The stock was sold at an average price of $248.26, for a total value of $371,893.48. Following the transaction, the executive vice president now owns 1,560 shares of the company’s stock, valued at $387,285.60. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 5,593 shares of company stock valued at $1,472,518. 0.23% of the stock is currently owned by insiders.

Institutional Investors Weigh In On McDonald’s

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. lifted its holdings in McDonald’s by 0.9% in the 4th quarter. Vanguard Group Inc. now owns 69,049,310 shares of the fast-food giant’s stock valued at $20,473,811,000 after acquiring an additional 599,745 shares during the last quarter. Norges Bank acquired a new position in McDonald’s in the 4th quarter valued at approximately $2,684,899,000. Price T Rowe Associates Inc. MD increased its stake in shares of McDonald’s by 15.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,347,048 shares of the fast-food giant’s stock worth $2,178,474,000 after acquiring an additional 987,099 shares during the last quarter. Gallagher Fiduciary Advisors LLC raised its stake in shares of McDonald’s by 141,160.9% during the 4th quarter. Gallagher Fiduciary Advisors LLC now owns 5,613,710 shares of the fast-food giant’s stock worth $1,664,521,000 after purchasing an additional 5,609,736 shares in the last quarter. Finally, Capital Research Global Investors lifted its stake in McDonald’s by 66.9% in the first quarter. Capital Research Global Investors now owns 5,471,007 shares of the fast-food giant’s stock valued at $1,542,550,000 after acquiring an additional 2,193,769 shares during the last quarter. 70.29% of the stock is currently owned by institutional investors.

McDonald’s Stock Performance

The company’s 50 day moving average price is $259.19 and its 200 day moving average price is $276.86. The company has a market cap of $180.49 billion, a price-to-earnings ratio of 21.26, a price-to-earnings-growth ratio of 2.79 and a beta of 0.71.

McDonald’s (NYSE:MCDGet Free Report) last announced its quarterly earnings results on Tuesday, April 30th. The fast-food giant reported $2.70 earnings per share for the quarter, missing analysts’ consensus estimates of $2.71 by ($0.01). McDonald’s had a negative return on equity of 180.74% and a net margin of 33.36%. The company had revenue of $6.17 billion during the quarter, compared to analyst estimates of $6.16 billion. During the same period in the prior year, the firm earned $2.63 EPS. McDonald’s’s quarterly revenue was up 4.6% on a year-over-year basis. On average, equities research analysts forecast that McDonald’s Co. will post 12.19 EPS for the current fiscal year.

McDonald’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 17th. Investors of record on Monday, June 3rd were issued a dividend of $1.67 per share. This represents a $6.68 annualized dividend and a dividend yield of 2.67%. The ex-dividend date of this dividend was Monday, June 3rd. McDonald’s’s dividend payout ratio is currently 56.71%.

McDonald’s Company Profile

(Get Free Report)

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.

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