McDonald’s (NYSE:MCD) Rating Lowered to Hold at TD Cowen

TD Cowen lowered shares of McDonald’s (NYSE:MCD) from a buy rating to a hold rating in a research report released on Wednesday morning, MarketBeat.com reports. The firm currently has $280.00 target price on the fast-food giant’s stock, down from their prior target price of $285.00.

Other analysts have also recently issued research reports about the stock. Erste Group Bank reissued a hold rating on shares of McDonald’s in a research report on Wednesday, April 3rd. The Goldman Sachs Group assumed coverage on shares of McDonald’s in a report on Thursday, June 13th. They set a neutral rating and a $288.00 target price on the stock. Loop Capital dropped their price target on shares of McDonald’s from $357.00 to $342.00 and set a buy rating for the company in a research note on Tuesday. JPMorgan Chase & Co. reduced their price objective on McDonald’s from $290.00 to $270.00 and set an overweight rating on the stock in a research note on Tuesday. Finally, Barclays lowered their target price on McDonald’s from $320.00 to $300.00 and set an overweight rating for the company in a research note on Tuesday. Eleven analysts have rated the stock with a hold rating and twenty have given a buy rating to the company. According to MarketBeat, McDonald’s presently has a consensus rating of Moderate Buy and a consensus target price of $303.00.

McDonald’s Stock Performance

McDonald’s stock opened at $276.70 on Wednesday. The firm has a 50 day moving average price of $255.91 and a 200 day moving average price of $272.90. McDonald’s has a fifty-two week low of $243.53 and a fifty-two week high of $302.39. The company has a market capitalization of $199.41 billion, a PE ratio of 23.49, a price-to-earnings-growth ratio of 3.58 and a beta of 0.71.

McDonald’s (NYSE:MCD) last posted its quarterly earnings data on Monday, July 29th. The fast-food giant reported $2.97 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.07 by ($0.10). McDonald’s had a net margin of 32.25% and a negative return on equity of 178.92%. The firm had revenue of $6.49 billion during the quarter, compared to analysts’ expectations of $6.62 billion. During the same quarter in the prior year, the firm posted $3.17 EPS. McDonald’s’s quarterly revenue was down .1% compared to the same quarter last year. As a group, equities research analysts forecast that McDonald’s will post 11.71 earnings per share for the current year.

McDonald’s Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 17th. Shareholders of record on Tuesday, September 3rd will be paid a $1.67 dividend. This represents a $6.68 dividend on an annualized basis and a yield of 2.41%. The ex-dividend date is Tuesday, September 3rd. McDonald’s’s dividend payout ratio is currently 56.71%.

Insider Transactions at McDonald’s

In related news, EVP Marion K. Gross sold 1,498 shares of the company’s stock in a transaction on Wednesday, July 3rd. The shares were sold at an average price of $248.26, for a total value of $371,893.48. Following the completion of the sale, the executive vice president now owns 1,560 shares in the company, valued at approximately $387,285.60. The transaction was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In other news, insider Joseph M. Erlinger sold 1,099 shares of the business’s stock in a transaction that occurred on Thursday, May 23rd. The stock was sold at an average price of $265.13, for a total value of $291,377.87. Following the transaction, the insider now owns 15,878 shares of the company’s stock, valued at $4,209,734.14. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Marion K. Gross sold 1,498 shares of the stock in a transaction on Wednesday, July 3rd. The stock was sold at an average price of $248.26, for a total value of $371,893.48. Following the sale, the executive vice president now directly owns 1,560 shares of the company’s stock, valued at $387,285.60. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 5,594 shares of company stock worth $1,454,507. Insiders own 0.23% of the company’s stock.

Hedge Funds Weigh In On McDonald’s

A number of large investors have recently bought and sold shares of MCD. Dixon Mitchell Investment Counsel Inc. acquired a new stake in McDonald’s in the first quarter valued at about $28,000. Signature Resources Capital Management LLC purchased a new stake in shares of McDonald’s in the fourth quarter valued at approximately $31,000. Clear Investment Research LLC acquired a new position in McDonald’s during the fourth quarter worth $38,000. Kings Path Partners LLC purchased a new position in McDonald’s in the second quarter worth $38,000. Finally, Keener Financial Planning LLC acquired a new stake in McDonald’s in the fourth quarter valued at $39,000. Hedge funds and other institutional investors own 70.29% of the company’s stock.

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.