McDonald’s (NYSE:MCD) Hits New 12-Month Low – Should You Sell?

McDonald’s Corporation (NYSE:MCDGet Free Report)’s share price reached a new 52-week low on Monday . The stock traded as low as $271.07 and last traded at $270.8980, with a volume of 2175805 shares traded. The stock had previously closed at $278.61.

Key Headlines Impacting McDonald’s

Here are the key news stories impacting McDonald’s this week:

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on MCD. Barclays reduced their price objective on McDonald’s from $380.00 to $350.00 and set an “overweight” rating on the stock in a research note on Friday, May 8th. Morgan Stanley set a $331.00 target price on McDonald’s in a report on Friday, May 8th. Wells Fargo & Company dropped their price objective on McDonald’s from $355.00 to $320.00 and set an “overweight” rating for the company in a research note on Friday, May 8th. Evercore set a $350.00 price target on shares of McDonald’s in a report on Friday, May 8th. Finally, Weiss Ratings cut shares of McDonald’s from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday, May 29th. Sixteen analysts have rated the stock with a Buy rating, thirteen have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $336.26.

Get Our Latest Research Report on McDonald’s

McDonald’s Stock Performance

The business has a 50-day simple moving average of $285.54 and a 200 day simple moving average of $305.35. The firm has a market cap of $195.80 billion, a P/E ratio of 22.71, a price-to-earnings-growth ratio of 2.69 and a beta of 0.41.

McDonald’s (NYSE:MCDGet Free Report) last released its quarterly earnings data on Thursday, May 7th. The fast-food giant reported $2.83 earnings per share for the quarter, topping the consensus estimate of $2.74 by $0.09. The business had revenue of $6.52 billion during the quarter, compared to analysts’ expectations of $6.47 billion. McDonald’s had a negative return on equity of 442.10% and a net margin of 31.62%.The business’s revenue was up 9.4% on a year-over-year basis. During the same quarter last year, the business posted $2.67 EPS. On average, research analysts expect that McDonald’s Corporation will post 12.93 EPS for the current year.

McDonald’s Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 16th. Investors of record on Tuesday, June 2nd were paid a $1.86 dividend. The ex-dividend date of this dividend was Tuesday, June 2nd. This represents a $7.44 dividend on an annualized basis and a yield of 2.7%. McDonald’s’s dividend payout ratio (DPR) is presently 61.34%.

Insider Buying and Selling at McDonald’s

In other McDonald’s news, EVP Desiree Ralls-Morrison sold 2,763 shares of the company’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $278.36, for a total value of $769,108.68. Following the completion of the transaction, the executive vice president directly owned 6,268 shares in the company, valued at approximately $1,744,760.48. This represents a 30.59% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 5,252 shares of the firm’s stock in a transaction dated Wednesday, June 10th. The stock was sold at an average price of $284.32, for a total transaction of $1,493,248.64. Following the completion of the sale, the insider directly owned 7,734 shares of the company’s stock, valued at approximately $2,198,930.88. This represents a 40.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 11,307 shares of company stock worth $3,262,622. 0.26% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On McDonald’s

Several hedge funds and other institutional investors have recently modified their holdings of MCD. Your Advocates Ltd. LLP purchased a new position in shares of McDonald’s during the 4th quarter worth approximately $27,000. Park Place Capital Corp lifted its stake in shares of McDonald’s by 95.7% in the 4th quarter. Park Place Capital Corp now owns 92 shares of the fast-food giant’s stock valued at $28,000 after purchasing an additional 45 shares during the period. IFC & Insurance Marketing Inc. purchased a new position in shares of McDonald’s in the 4th quarter valued at approximately $29,000. Abound Financial LLC bought a new stake in shares of McDonald’s during the fourth quarter valued at approximately $30,000. Finally, Purpose Unlimited Inc. bought a new stake in shares of McDonald’s during the fourth quarter valued at approximately $31,000. Hedge funds and other institutional investors own 70.29% of the company’s stock.

About McDonald’s

(Get Free Report)

McDonald’s Corporation (NYSE: MCD) is a global quick-service restaurant company best known for its hamburgers, French fries and breakfast offerings. The company develops, operates and franchises a system of restaurants that sell a range of food and beverage items, including signature products such as the Big Mac, Quarter Pounder, Chicken McNuggets, McCafé coffee beverages and a variety of salads, desserts and seasonal menu items. McDonald’s serves customers through company-operated restaurants and franchised locations, and it supports sales via dine-in, drive-thru, digital ordering platforms and third-party delivery partnerships.

Founded in 1940 by brothers Richard and Maurice McDonald as a single San Bernardino, California restaurant, the business was transformed into a franchising model after Ray Kroc joined in the mid-1950s and led the brand’s national and international expansion.

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