McDonald’s (NYSE:MCD) Sets New 12-Month High – Still a Buy?

Shares of McDonald’s Co. (NYSE:MCDGet Free Report) reached a new 52-week high during trading on Monday . The stock traded as high as $307.93 and last traded at $307.55, with a volume of 378065 shares traded. The stock had previously closed at $305.04.

Wall Street Analyst Weigh In

A number of research analysts have recently issued reports on the stock. UBS Group boosted their price target on shares of McDonald’s from $305.00 to $345.00 and gave the stock a “buy” rating in a research note on Wednesday, October 9th. Deutsche Bank Aktiengesellschaft reduced their price target on McDonald’s from $295.00 to $290.00 and set a “buy” rating for the company in a report on Tuesday, July 30th. Tigress Financial upped their price objective on McDonald’s from $355.00 to $360.00 and gave the stock a “buy” rating in a report on Tuesday, September 3rd. BMO Capital Markets reduced their target price on McDonald’s from $330.00 to $315.00 and set an “outperform” rating for the company in a report on Tuesday, July 30th. Finally, Loop Capital restated a “buy” rating and set a $342.00 target price on shares of McDonald’s in a research report on Tuesday, September 10th. Ten research analysts have rated the stock with a hold rating and twenty have given a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $310.50.

Get Our Latest Report on MCD

McDonald’s Trading Up 1.6 %

The stock’s 50 day moving average price is $290.21 and its 200 day moving average price is $272.49. The company has a market cap of $223.30 billion, a price-to-earnings ratio of 25.89, a P/E/G ratio of 4.05 and a beta of 0.73.

McDonald’s (NYSE:MCDGet Free Report) last posted its quarterly earnings results on Monday, July 29th. The fast-food giant reported $2.97 earnings per share 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 analysts’ expectations of $6.62 billion. McDonald’s had a negative return on equity of 178.68% and a net margin of 32.25%. The business’s revenue for the quarter was down .1% on a year-over-year basis. During the same period in the prior year, the business earned $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 Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, December 16th. Stockholders of record on Monday, December 2nd will be issued a $1.77 dividend. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.29%. This is an increase from McDonald’s’s previous quarterly dividend of $1.67. The ex-dividend date of this dividend is Monday, December 2nd. McDonald’s’s dividend payout ratio (DPR) is 60.10%.

Insider Activity

In related news, insider Joseph M. Erlinger sold 1,098 shares of the firm’s stock in a transaction that occurred on Friday, August 23rd. The shares were sold at an average price of $288.70, for a total value of $316,992.60. Following the transaction, the insider now owns 12,583 shares in the company, valued at approximately $3,632,712.10. This trade represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. In related news, insider Joseph M. Erlinger sold 1,099 shares of the firm’s stock in a transaction dated Tuesday, July 23rd. The stock was sold at an average price of $260.00, for a total transaction of $285,740.00. Following the sale, the insider now directly owns 13,681 shares in the company, valued at approximately $3,557,060. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Joseph M. Erlinger sold 1,098 shares of the company’s stock in a transaction that occurred on Friday, August 23rd. The stock was sold at an average price of $288.70, for a total value of $316,992.60. Following the completion of the transaction, the insider now owns 12,583 shares of the company’s stock, valued at approximately $3,632,712.10. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 31,751 shares of company stock valued at $9,493,973 in the last three months. Corporate insiders own 0.23% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. Hantz Financial Services Inc. purchased a new stake in shares of McDonald’s during the second quarter worth about $6,612,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp grew its stake in McDonald’s by 58.9% during the 2nd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 138,102 shares of the fast-food giant’s stock valued at $35,194,000 after purchasing an additional 51,210 shares in the last quarter. BNP Paribas acquired a new position in shares of McDonald’s in the 1st quarter valued at approximately $7,898,000. First Long Island Investors LLC boosted its stake in shares of McDonald’s by 16.6% during the 1st quarter. First Long Island Investors LLC now owns 54,021 shares of the fast-food giant’s stock valued at $15,231,000 after buying an additional 7,707 shares during the last quarter. Finally, Lloyd Advisory Services LLC. grew its position in shares of McDonald’s by 504.6% during the first quarter. Lloyd Advisory Services LLC. now owns 9,165 shares of the fast-food giant’s stock worth $2,584,000 after buying an additional 7,649 shares in the last quarter. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

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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