McDonald’s (NYSE:MCD) Share Price Crosses Above Two Hundred Day Moving Average – Should You Sell?

Shares of McDonald’s Co. (NYSE:MCD) passed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $284.06 and traded as high as $291.47. McDonald’s shares last traded at $289.60, with a volume of 1,936,067 shares changing hands.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on MCD shares. Morgan Stanley lifted their price target on McDonald’s from $296.00 to $340.00 and gave the stock an “overweight” rating in a report on Tuesday, October 15th. Wedbush reiterated an “outperform” rating and set a $295.00 target price on shares of McDonald’s in a research note on Wednesday, October 23rd. Citigroup increased their price target on McDonald’s from $301.00 to $317.00 and gave the company a “neutral” rating in a research note on Wednesday, October 2nd. BMO Capital Markets lifted their price objective on shares of McDonald’s from $315.00 to $335.00 and gave the stock an “outperform” rating in a research report on Wednesday, October 30th. Finally, Robert W. Baird lowered shares of McDonald’s from an “outperform” rating to a “neutral” rating and dropped their price objective for the company from $320.00 to $290.00 in a research report on Wednesday, October 23rd. Twelve analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $320.65.

McDonald’s Price Performance

The company has a fifty day moving average of $295.93 and a 200-day moving average of $284.06. The firm has a market cap of $207.53 billion, a P/E ratio of 25.43, a P/E/G ratio of 3.95 and a beta of 0.73.

McDonald’s (NYSE:MCD) last announced its earnings results on Tuesday, October 29th. The fast-food giant reported $3.23 EPS for the quarter, beating the consensus estimate of $3.18 by $0.05. McDonald’s had a net margin of 31.79% and a negative return on equity of 175.42%. The company had revenue of $6.87 billion during the quarter, compared to the consensus estimate of $6.82 billion. During the same quarter in the prior year, the company posted $3.19 earnings per share. The firm’s revenue for the quarter was up 2.7% on a year-over-year basis. On average, sell-side analysts expect that McDonald’s Co. will post 11.75 EPS for the current fiscal year.

Insider Transactions at McDonald’s

In related news, CMO Edith Morgan Flatley sold 2,346 shares of the business’s stock in a transaction dated Monday, October 14th. The shares were sold at an average price of $310.00, for a total value 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 44.68 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Joseph M. Erlinger sold 1,099 shares of the firm’s stock in a transaction dated Monday, December 23rd. The stock was sold at an average price of $291.10, for a total transaction of $319,918.90. Following the sale, the insider now owns 8,187 shares of the company’s stock, valued at $2,383,235.70. This trade represents a 11.84 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 7,142 shares of company stock worth $2,131,433 in the last 90 days. Insiders own 0.23% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of MCD. Legacy Investment Solutions LLC bought a new position in McDonald’s during the third quarter valued at $25,000. RPg Family Wealth Advisory LLC bought a new position in shares of McDonald’s during the 3rd quarter worth $31,000. Hara Capital LLC purchased a new stake in McDonald’s in the 3rd quarter worth about $44,000. Peterson Financial Group Inc. purchased a new stake in McDonald’s in the 3rd quarter worth about $58,000. Finally, FSA Wealth Management LLC purchased a new stake in McDonald’s during the third quarter valued at about $72,000. 70.29% of the stock is 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.