McDonald’s (NYSE:MCD) Trading 2.8% Higher on Analyst Upgrade

McDonald’s Co. (NYSE:MCD)’s share price shot up 2.8% during trading on Monday after Evercore ISI raised their price target on the stock from $300.00 to $320.00. Evercore ISI currently has an outperform rating on the stock. McDonald’s traded as high as $286.66 and last traded at $286.36. 1,380,873 shares traded hands during mid-day trading, a decline of 61% from the average session volume of 3,553,470 shares. The stock had previously closed at $278.49.

Other analysts also recently issued reports about the company. JPMorgan Chase & Co. decreased their price target on McDonald’s from $290.00 to $270.00 and set an “overweight” rating on the stock in a research note on Tuesday, July 30th. Truist Financial lowered their price target on shares of McDonald’s from $300.00 to $295.00 and set a “buy” rating on the stock in a research note on Tuesday, July 30th. Morgan Stanley reduced their price objective on shares of McDonald’s from $312.00 to $300.00 and set an “overweight” rating for the company in a research note on Thursday, July 11th. BMO Capital Markets lowered their target price on shares of McDonald’s from $330.00 to $315.00 and set an “outperform” rating on the stock in a research report on Tuesday, July 30th. Finally, Loop Capital reduced their price target on shares of McDonald’s from $357.00 to $342.00 and set a “buy” rating for the company in a research report on Tuesday, July 30th. Eleven investment analysts have rated the stock with a hold rating and twenty have issued a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $303.71.

Insider Buying and Selling

In related news, insider Joseph M. Erlinger sold 1,099 shares of the firm’s stock in a transaction that occurred on Thursday, May 23rd. The shares were sold at an average price of $265.13, for a total value of $291,377.87. Following the completion of the transaction, the insider now owns 15,878 shares of the company’s stock, valued at approximately $4,209,734.14. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In related news, insider Joseph M. Erlinger sold 1,098 shares of the stock in a transaction dated Friday, June 21st. The stock was sold at an average price of $260.00, for a total value of $285,480.00. Following the completion of the sale, the insider now directly owns 14,780 shares of the company’s stock, valued at approximately $3,842,800. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Joseph M. Erlinger sold 1,099 shares of McDonald’s stock in a transaction dated Thursday, May 23rd. The shares were sold at an average price of $265.13, for a total value of $291,377.87. Following the transaction, the insider now directly owns 15,878 shares in the company, valued at approximately $4,209,734.14. The disclosure for this sale can be found here. In the last quarter, insiders have sold 4,794 shares of company stock valued at $1,234,491. 0.23% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Dixon Mitchell Investment Counsel Inc. bought a new position in McDonald’s during the first quarter valued at approximately $28,000. Signature Resources Capital Management LLC acquired a new position in shares of McDonald’s during the 4th quarter worth $31,000. Clear Investment Research LLC bought a new position in shares of McDonald’s during the 4th quarter valued at $38,000. Kings Path Partners LLC acquired a new stake in shares of McDonald’s in the 2nd quarter valued at $38,000. Finally, Atlantic Edge Private Wealth Management LLC bought a new stake in McDonald’s in the fourth quarter worth $39,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald’s Stock Down 0.7 %

The company’s 50-day simple moving average is $260.01 and its 200 day simple moving average is $270.72. The stock has a market capitalization of $205.85 billion, a price-to-earnings ratio of 24.25, a P/E/G ratio of 3.58 and a beta of 0.71.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data on Monday, July 29th. The fast-food giant reported $2.97 EPS for the quarter, missing analysts’ consensus estimates of $3.07 by ($0.10). The company had revenue of $6.49 billion for the quarter, compared to analyst estimates of $6.62 billion. McDonald’s had a net margin of 32.25% and a negative return on equity of 178.92%. The business’s revenue was down .1% on a year-over-year basis. During the same period in the prior year, the company posted $3.17 EPS. On average, equities analysts expect that McDonald’s Co. will post 11.71 earnings per share for the current fiscal year.

McDonald’s Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 17th. Investors of record on Tuesday, September 3rd will be issued a dividend of $1.67 per share. This represents a $6.68 annualized dividend and a dividend yield of 2.34%. The ex-dividend date is Tuesday, September 3rd. McDonald’s’s dividend payout ratio is currently 56.71%.

About McDonald’s

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.