McDonald’s (NYSE:MCD) Trading Down 0.7% After Analyst Downgrade

McDonald’s Co. (NYSE:MCD)’s share price was down 0.7% during mid-day trading on Tuesday after Stifel Nicolaus lowered their price target on the stock from $285.00 to $265.00. Stifel Nicolaus currently has a hold rating on the stock. McDonald’s traded as low as $257.17 and last traded at $257.61. Approximately 472,182 shares were traded during mid-day trading, a decline of 86% from the average daily volume of 3,440,544 shares. The stock had previously closed at $259.54.

MCD has been the subject of a number of other research reports. UBS Group dropped their price target on McDonald’s from $340.00 to $335.00 and set a “buy” rating for the company in a research note on Friday, April 5th. The Goldman Sachs Group started coverage on McDonald’s in a research note on Thursday, June 13th. They issued a “neutral” rating and a $288.00 price target for the company. JPMorgan Chase & Co. dropped their price target on McDonald’s from $300.00 to $290.00 and set an “overweight” rating for the company in a research note on Wednesday, July 10th. Bank of America lowered their price target on McDonald’s from $302.00 to $288.00 and set a “neutral” rating for the company in a report on Tuesday, May 28th. Finally, Erste Group Bank reaffirmed a “hold” rating on shares of McDonald’s in a research note on Wednesday, April 3rd. Ten investment analysts have rated the stock with a hold rating and nineteen have given a buy rating to the company’s stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $308.57.

Insider Activity

In related news, EVP Marion K. Gross sold 1,498 shares of the stock in a transaction on Wednesday, July 3rd. The shares were sold at an average price of $248.26, for a total transaction of $371,893.48. Following the transaction, the executive vice president now directly owns 1,560 shares of the company’s stock, valued at $387,285.60. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In related news, EVP Marion K. Gross sold 1,498 shares of the stock in a transaction on Wednesday, July 3rd. The shares were sold at an average price of $248.26, for a total transaction of $371,893.48. Following the transaction, the executive vice president now directly owns 1,560 shares of the company’s stock, valued at $387,285.60. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Joseph M. Erlinger sold 1,098 shares of the stock in a transaction on Friday, June 21st. The stock was sold at an average price of $260.00, for a total transaction of $285,480.00. Following the transaction, the insider now directly owns 14,780 shares in the company, valued at $3,842,800. The disclosure for this sale can be found here. In the last three months, insiders have sold 4,495 shares of company stock valued at $1,168,767. 0.23% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of MCD. Dixon Mitchell Investment Counsel Inc. acquired a new position in McDonald’s during the first quarter worth $28,000. Signature Resources Capital Management LLC acquired a new position in McDonald’s during the fourth quarter worth $31,000. Clear Investment Research LLC acquired a new position in McDonald’s during the fourth quarter worth $38,000. Keener Financial Planning LLC acquired a new position in McDonald’s during the fourth quarter worth $39,000. Finally, Atlantic Edge Private Wealth Management LLC acquired a new position in McDonald’s during the fourth quarter worth $39,000. 70.29% of the stock is owned by institutional investors.

McDonald’s Price Performance

The company’s fifty day simple moving average is $257.04 and its two-hundred day simple moving average is $274.61. The stock has a market cap of $185.01 billion, a price-to-earnings ratio of 21.87, a P/E/G ratio of 2.96 and a beta of 0.71.

McDonald’s (NYSE:MCD) last released its quarterly earnings data on Tuesday, April 30th. The fast-food giant reported $2.70 earnings per share for the quarter, missing the consensus estimate 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 business had revenue of $6.17 billion for the quarter, compared to analyst estimates of $6.16 billion. During the same quarter in the previous year, the company posted $2.63 EPS. The business’s quarterly revenue was up 4.6% on a year-over-year basis. On average, analysts forecast that McDonald’s Co. will post 12.13 earnings per share for the current year.

McDonald’s Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, June 17th. Stockholders of record on Monday, June 3rd were issued a $1.67 dividend. The ex-dividend date of this dividend was Monday, June 3rd. This represents a $6.68 annualized dividend and a dividend yield of 2.60%. McDonald’s’s dividend payout ratio is currently 56.71%.

McDonald’s Company Profile

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.