McDonald’s (NYSE:MCD) Reaches New 52-Week High on Analyst Upgrade

McDonald’s Co. (NYSE:MCD) shares hit a new 52-week high during mid-day trading on Thursday after Robert W. Baird raised their price target on the stock from $280.00 to $320.00. Robert W. Baird currently has an outperform rating on the stock. McDonald’s traded as high as $302.69 and last traded at $301.77, with a volume of 144840 shares traded. The stock had previously closed at $300.47.

A number of other brokerages have also recently weighed in on MCD. Bank of America reduced their price target on shares of McDonald’s from $288.00 to $278.00 and set a “neutral” rating on the stock in a research report on Tuesday, July 30th. TD Cowen restated a “hold” rating and issued a $280.00 price objective on shares of McDonald’s in a research note on Monday. JPMorgan Chase & Co. increased their price objective on McDonald’s from $270.00 to $290.00 and gave the stock an “overweight” rating in a research report on Monday, September 16th. Barclays cut their target price on McDonald’s from $320.00 to $300.00 and set an “overweight” rating for the company in a research report on Tuesday, July 30th. Finally, Loop Capital reaffirmed a “buy” rating and issued a $342.00 price objective on shares of McDonald’s in a research note on Tuesday, September 10th. Eleven equities research analysts have rated the stock with a hold rating and nineteen have issued a buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $308.22.

Insider Activity at McDonald’s

In related news, insider Joseph M. Erlinger sold 1,099 shares of the stock in a transaction on 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 of the company’s stock, valued at $3,557,060. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. In related news, insider Joseph M. Erlinger sold 1,099 shares of the stock in a transaction that occurred on Tuesday, July 23rd. The shares were sold at an average price of $260.00, for a total transaction of $285,740.00. Following the transaction, the insider now owns 13,681 shares in the company, valued at $3,557,060. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. Also, EVP Marion K. Gross sold 1,498 shares of McDonald’s stock in a transaction that occurred on Wednesday, July 3rd. The stock was sold at an average price of $248.26, for a total transaction of $371,893.48. Following the completion of the sale, the executive vice president now directly owns 1,560 shares of the company’s stock, valued at approximately $387,285.60. The disclosure for this sale can be found here. In the last three months, insiders have sold 23,958 shares of company stock valued at $7,032,111. 0.23% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of MCD. Hantz Financial Services Inc. bought a new position in McDonald’s in the 2nd quarter worth $6,612,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp raised its stake in shares of McDonald’s by 58.9% in the second quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 138,102 shares of the fast-food giant’s stock worth $35,194,000 after buying an additional 51,210 shares during the period. California State Teachers Retirement System lifted its position in shares of McDonald’s by 1.4% during the 4th quarter. California State Teachers Retirement System now owns 1,180,928 shares of the fast-food giant’s stock valued at $350,157,000 after buying an additional 15,863 shares in the last quarter. Brevan Howard Capital Management LP grew its stake in shares of McDonald’s by 411.4% during the 4th quarter. Brevan Howard Capital Management LP now owns 7,497 shares of the fast-food giant’s stock valued at $2,223,000 after acquiring an additional 6,031 shares during the period. Finally, BNP Paribas bought a new position in shares of McDonald’s during the 1st quarter valued at approximately $7,898,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald’s Trading Up 0.4 %

The company has a market cap of $216.47 billion, a P/E ratio of 25.62, a PEG ratio of 3.99 and a beta of 0.72. The business’s 50 day simple moving average is $279.90 and its 200 day simple moving average is $270.89.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Monday, July 29th. The fast-food giant reported $2.97 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $3.07 by ($0.10). McDonald’s had a negative return on equity of 178.68% and a net margin of 32.25%. The firm had revenue of $6.49 billion during the quarter, compared to analysts’ expectations of $6.62 billion. During the same period last year, the company earned $3.17 earnings per share. The business’s revenue for the quarter was down .1% on a year-over-year basis. Sell-side analysts anticipate that McDonald’s Co. will post 11.69 EPS for the current year.

McDonald’s Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 17th. Shareholders of record on Tuesday, September 3rd were issued a dividend of $1.67 per share. The ex-dividend date was Tuesday, September 3rd. This represents a $6.68 dividend on an annualized basis and a yield of 2.21%. McDonald’s’s dividend payout ratio is presently 56.71%.

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.