KeyCorp Has Lowered Expectations for McDonald’s (NYSE:MCD) Stock Price

McDonald’s (NYSE:MCD) had its price objective reduced by KeyCorp from $330.00 to $320.00 in a research report sent to investors on Friday,Benzinga reports. They currently have an overweight rating on the fast-food giant’s stock.

A number of other research firms have also weighed in on MCD. Loop Capital restated a “buy” rating and issued a $342.00 target price on shares of McDonald’s in a report on Friday, January 3rd. Barclays lifted their target price on McDonald’s from $300.00 to $325.00 and gave the company an “overweight” rating in a research report on Tuesday, October 22nd. Bank of America increased their price target on McDonald’s from $321.00 to $324.00 and gave the company a “neutral” rating in a research report on Wednesday, October 30th. Robert W. Baird downgraded shares of McDonald’s from an “outperform” rating to a “neutral” rating and cut their price objective for the stock from $320.00 to $290.00 in a report on Wednesday, October 23rd. Finally, Truist Financial lowered their target price on shares of McDonald’s from $350.00 to $342.00 and set a “buy” rating for the company in a report on Wednesday, October 30th. Ten analysts have rated the stock with a hold rating and eighteen have given a buy rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $320.78.

McDonald’s Stock Performance

McDonald’s stock opened at $285.37 on Friday. The stock’s 50 day moving average price is $291.21 and its two-hundred day moving average price is $287.88. The stock has a market capitalization of $204.50 billion, a price-to-earnings ratio of 25.05, a PEG ratio of 3.66 and a beta of 0.73. McDonald’s has a 52-week low of $243.53 and a 52-week high of $317.90.

McDonald’s (NYSE:MCD) last released its quarterly earnings data on Tuesday, October 29th. The fast-food giant reported $3.23 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.18 by $0.05. The company had revenue of $6.87 billion for the quarter, compared to analysts’ expectations of $6.82 billion. McDonald’s had a net margin of 31.79% and a negative return on equity of 175.42%. The business’s revenue was up 2.7% on a year-over-year basis. During the same quarter in the prior year, the firm earned $3.19 EPS. On average, equities research analysts forecast that McDonald’s will post 11.72 EPS for the current year.

Insider Activity

In other news, EVP Marion K. Gross sold 1,499 shares of the company’s stock in a transaction on Thursday, January 2nd. The shares were sold at an average price of $290.95, for a total value of $436,134.05. Following the transaction, the executive vice president now owns 1,560 shares of the company’s stock, valued at approximately $453,882. This represents a 49.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 1,099 shares of McDonald’s stock in a transaction on Monday, November 25th. The shares were sold at an average price of $292.50, for a total value of $321,457.50. Following the sale, the insider now directly owns 9,286 shares of the company’s stock, valued at $2,716,155. This represents a 10.58 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 8,905 shares of company stock worth $2,592,327. 0.23% of the stock is owned by company insiders.

Institutional Trading of McDonald’s

Several institutional investors and hedge funds have recently modified their holdings of the business. Geode Capital Management LLC raised its stake in McDonald’s by 1.4% in the third quarter. Geode Capital Management LLC now owns 15,916,980 shares of the fast-food giant’s stock valued at $4,833,510,000 after purchasing an additional 220,365 shares in the last quarter. Wellington Management Group LLP raised its position in shares of McDonald’s by 0.9% during the 3rd quarter. Wellington Management Group LLP now owns 15,082,894 shares of the fast-food giant’s stock valued at $4,592,892,000 after buying an additional 128,800 shares in the last quarter. Legal & General Group Plc lifted its holdings in shares of McDonald’s by 3.2% during the 2nd quarter. Legal & General Group Plc now owns 6,149,080 shares of the fast-food giant’s stock worth $1,567,030,000 after acquiring an additional 188,888 shares during the last quarter. Charles Schwab Investment Management Inc. grew its position in McDonald’s by 0.9% in the third quarter. Charles Schwab Investment Management Inc. now owns 5,564,359 shares of the fast-food giant’s stock worth $1,694,403,000 after acquiring an additional 49,106 shares in the last quarter. Finally, Janus Henderson Group PLC increased its stake in McDonald’s by 0.7% in the third quarter. Janus Henderson Group PLC now owns 2,765,049 shares of the fast-food giant’s stock valued at $841,966,000 after acquiring an additional 19,867 shares during the last quarter. Hedge funds and other institutional investors own 70.29% of the company’s stock.

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.