McDonald’s (NYSE:MCD) Shares Down 0.7% – Here’s Why

McDonald’s Co. (NYSE:MCD) fell 0.7% during mid-day trading on Tuesday . The company traded as low as $313.46 and last traded at $313.76. 531,207 shares changed hands during mid-day trading, a decline of 85% from the average session volume of 3,577,307 shares. The stock had previously closed at $316.07.

Analysts Set New Price Targets

A number of brokerages recently commented on MCD. Wedbush boosted their price objective on shares of McDonald’s from $320.00 to $330.00 and gave the company an “outperform” rating in a research report on Tuesday, February 11th. Piper Sandler dropped their price target on shares of McDonald’s from $297.00 to $290.00 and set a “neutral” rating on the stock in a research note on Tuesday, February 4th. Truist Financial reduced their price objective on McDonald’s from $342.00 to $340.00 and set a “buy” rating for the company in a research report on Tuesday, February 11th. KeyCorp upped their target price on McDonald’s from $335.00 to $340.00 and gave the stock an “overweight” rating in a research report on Thursday, March 27th. Finally, Erste Group Bank upgraded McDonald’s from a “hold” rating to a “strong-buy” rating in a report on Monday, March 17th. Nine analysts have rated the stock with a hold rating, sixteen have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, McDonald’s currently has an average rating of “Moderate Buy” and an average price target of $322.87.

McDonald’s Trading Down 1.0 %

The stock has a market capitalization of $223.51 billion, a P/E ratio of 27.47, a P/E/G ratio of 3.10 and a beta of 0.62. The business’s fifty day simple moving average is $306.66 and its two-hundred day simple moving average is $299.09.

McDonald’s (NYSE:MCD) last released its earnings results on Monday, February 10th. The fast-food giant reported $2.83 earnings per share for the quarter, meeting the consensus estimate of $2.83. McDonald’s had a net margin of 31.73% and a negative return on equity of 181.63%. On average, equities research analysts anticipate that McDonald’s Co. will post 12.25 earnings per share for the current year.

McDonald’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 17th. Stockholders of record on Monday, March 3rd were given a dividend of $1.77 per share. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.26%. The ex-dividend date of this dividend was Monday, March 3rd. McDonald’s’s dividend payout ratio is presently 62.16%.

Insider Buying and Selling

In related news, insider Joseph M. Erlinger sold 300 shares of the stock in a transaction dated Thursday, January 23rd. The shares were sold at an average price of $280.75, for a total value of $84,225.00. Following the completion of the transaction, the insider now owns 7,887 shares of the company’s stock, valued at $2,214,275.25. This represents a 3.66 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CMO Edith Morgan Flatley sold 3,200 shares of McDonald’s stock in a transaction that occurred on Wednesday, February 19th. The shares were sold at an average price of $300.76, for a total value of $962,432.00. Following the sale, the chief marketing officer now directly owns 9,858 shares in the company, valued at $2,964,892.08. The trade was a 24.51 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 27,497 shares of company stock valued at $8,461,400 over the last ninety days. 0.23% of the stock is owned by company insiders.

Hedge Funds Weigh In On McDonald’s

A number of institutional investors and hedge funds have recently added to or reduced their stakes in MCD. Mascagni Wealth Management Inc. bought a new stake in shares of McDonald’s during the fourth quarter worth $25,000. Atala Financial Inc bought a new stake in McDonald’s during the 4th quarter worth about $26,000. Comprehensive Financial Planning Inc. PA acquired a new stake in McDonald’s in the 4th quarter valued at about $27,000. Collier Financial bought a new position in shares of McDonald’s in the fourth quarter worth about $29,000. Finally, Pinney & Scofield Inc. acquired a new position in shares of McDonald’s during the fourth quarter worth approximately $29,000. 70.29% of the stock is currently owned by institutional investors and hedge funds.

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.