McDonald’s (NYSE:MCD) Shares Down 1.2% – Here’s Why

McDonald’s Co. (NYSE:MCD)’s share price dropped 1.2% during trading on Monday . The company traded as low as $307.89 and last traded at $307.71. Approximately 363,555 shares traded hands during trading, a decline of 90% from the average daily volume of 3,686,058 shares. The stock had previously closed at $311.30.

Analyst Ratings Changes

A number of analysts have issued reports on the stock. Robert W. Baird cut their price target on shares of McDonald’s from $310.00 to $300.00 and set a “neutral” rating on the stock in a research note on Monday, April 7th. Wedbush upped their target price on shares of McDonald’s from $320.00 to $330.00 and gave the stock an “outperform” rating in a research note on Tuesday, February 11th. TD Securities reissued a “hold” rating and issued a $300.00 price target on shares of McDonald’s in a research report on Monday, February 10th. Piper Sandler cut their price objective on McDonald’s from $297.00 to $290.00 and set a “neutral” rating on the stock in a research report on Tuesday, February 4th. Finally, Bank of America lifted their target price on McDonald’s from $312.00 to $316.00 and gave the company a “neutral” rating in a report on Tuesday, February 11th. Nine research analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $322.87.

McDonald’s Stock Down 1.8 %

The firm has a market capitalization of $218.40 billion, a PE ratio of 26.84, a P/E/G ratio of 3.10 and a beta of 0.62. The firm’s 50 day moving average price is $307.38 and its two-hundred day moving average price is $299.29.

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

McDonald’s Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 17th. Shareholders of record on Monday, March 3rd were paid a dividend of $1.77 per share. The ex-dividend date of this dividend was Monday, March 3rd. This represents a $7.08 dividend on an annualized basis and a yield of 2.32%. McDonald’s’s dividend payout ratio (DPR) is 62.16%.

Insider Transactions at McDonald’s

In related news, insider Joseph M. Erlinger sold 300 shares of the firm’s stock in a transaction on Thursday, January 23rd. The stock was sold at an average price of $280.75, for a total transaction of $84,225.00. Following the transaction, the insider now directly owns 7,887 shares in the company, valued at $2,214,275.25. This trade represents a 3.66 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Tiffanie L. Boyd sold 1,000 shares of the stock in a transaction on Thursday, February 27th. The stock was sold at an average price of $309.27, for a total transaction of $309,270.00. Following the sale, the executive vice president now directly owns 5,564 shares in the company, valued at $1,720,778.28. This trade represents a 15.23 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 27,497 shares of company stock valued at $8,461,400. Insiders own 0.23% of the company’s stock.

Hedge Funds Weigh In On McDonald’s

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

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.