Bank of America Forecasts Strong Price Appreciation for McDonald’s (NYSE:MCD) Stock

McDonald’s (NYSE:MCD) had its price objective upped by investment analysts at Bank of America from $321.00 to $324.00 in a note issued to investors on Wednesday, Benzinga reports. The brokerage currently has a “neutral” rating on the fast-food giant’s stock. Bank of America‘s price target suggests a potential upside of 10.89% from the stock’s current price.

Other equities analysts have also recently issued research reports about the company. Guggenheim cut McDonald’s from a “buy” rating to a “neutral” rating and decreased their price target for the company from $290.00 to $285.00 in a report on Wednesday, October 23rd. JPMorgan Chase & Co. lifted their price objective on McDonald’s from $270.00 to $290.00 and gave the company an “overweight” rating in a report on Monday, September 16th. Truist Financial cut their price objective on McDonald’s from $350.00 to $342.00 and set a “buy” rating on the stock in a report on Wednesday. The Goldman Sachs Group lifted their price objective on McDonald’s from $284.00 to $325.00 and gave the company a “neutral” rating in a report on Tuesday, September 24th. Finally, Morgan Stanley lifted their price objective on McDonald’s from $296.00 to $340.00 and gave the company an “overweight” rating in a report on Tuesday, October 15th. Thirteen investment analysts have rated the stock with a hold rating and eighteen have given a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $319.46.

McDonald’s Stock Performance

Shares of NYSE:MCD opened at $292.17 on Wednesday. McDonald’s has a twelve month low of $243.53 and a twelve month high of $317.90. The firm has a market cap of $209.59 billion, a PE ratio of 25.56, a price-to-earnings-growth ratio of 4.13 and a beta of 0.73. The business has a fifty day moving average of $298.25 and a 200-day moving average of $275.58.

McDonald’s (NYSE:MCD) last announced its earnings results on Tuesday, October 29th. The fast-food giant reported $3.23 earnings per share for the quarter, beating analysts’ consensus estimates of $3.18 by $0.05. McDonald’s had a negative return on equity of 178.68% and a net margin of 32.25%. The company had revenue of $6.87 billion during the quarter, compared to analyst estimates of $6.82 billion. During the same period last year, the company posted $3.19 earnings per share. The firm’s quarterly revenue was up 2.7% compared to the same quarter last year. On average, analysts anticipate that McDonald’s will post 11.73 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CMO Edith Morgan Flatley sold 2,346 shares of the business’s stock in a transaction that occurred on Monday, October 14th. The stock was sold at an average price of $310.00, for a total transaction of $727,260.00. Following the transaction, the chief marketing officer now directly owns 2,905 shares of the company’s stock, valued at approximately $900,550. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, CMO Edith Morgan Flatley sold 2,346 shares of the business’s stock in a transaction on Monday, October 14th. The stock was sold at an average price of $310.00, for a total value of $727,260.00. Following the completion of the sale, the chief marketing officer now directly owns 2,905 shares in the company, valued at $900,550. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CEO Christopher J. Kempczinski sold 11,727 shares of the business’s stock in a transaction on Monday, September 23rd. The shares were sold at an average price of $300.03, for a total value of $3,518,451.81. Following the completion of the sale, the chief executive officer now owns 49,885 shares of the company’s stock, valued at $14,966,996.55. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 34,097 shares of company stock valued at $10,256,818. 0.23% of the stock is owned by insiders.

Institutional Trading of McDonald’s

Institutional investors have recently added to or reduced their stakes in the company. International Assets Investment Management LLC lifted its position in shares of McDonald’s by 31,151.1% during the 3rd quarter. International Assets Investment Management LLC now owns 2,319,142 shares of the fast-food giant’s stock valued at $706,202,000 after acquiring an additional 2,311,721 shares during the period. Capital Research Global Investors increased its holdings in McDonald’s by 66.9% in the 1st quarter. Capital Research Global Investors now owns 5,471,007 shares of the fast-food giant’s stock worth $1,542,550,000 after purchasing an additional 2,193,769 shares in the last quarter. Swedbank AB acquired a new position in McDonald’s in the 1st quarter worth about $348,206,000. Capital World Investors increased its stake in shares of McDonald’s by 39.7% in the first quarter. Capital World Investors now owns 3,565,398 shares of the fast-food giant’s stock valued at $1,005,264,000 after buying an additional 1,012,534 shares during the period. Finally, Mondrian Investment Partners LTD acquired a new stake in shares of McDonald’s in the second quarter valued at about $110,321,000. 70.29% of the stock is currently owned by institutional investors.

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.