McDonald’s (NYSE:MCD) Downgraded by Guggenheim to “Neutral”

Guggenheim lowered shares of McDonald’s (NYSE:MCD) from a buy rating to a neutral rating in a research note issued to investors on Wednesday morning, MarketBeat.com reports. Guggenheim currently has $285.00 price target on the fast-food giant’s stock, down from their previous price target of $290.00.

Several other research firms have also issued reports on MCD. Truist Financial upped their target price on McDonald’s from $295.00 to $350.00 and gave the company a “buy” rating in a report on Tuesday, October 15th. Loop Capital restated a “buy” rating on shares of McDonald’s in a research note on Friday, October 18th. Barclays lifted their target price on McDonald’s from $300.00 to $325.00 and gave the stock an “overweight” rating in a research note on Tuesday. Argus upgraded shares of McDonald’s from a “hold” rating to a “buy” rating in a research report on Tuesday, October 8th. Finally, JPMorgan Chase & Co. lifted their price objective on shares of McDonald’s from $270.00 to $290.00 and gave the stock an “overweight” rating in a research report on Monday, September 16th. Twelve investment analysts have rated the stock with a hold rating and nineteen have assigned a buy rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $318.22.

McDonald’s Trading Down 5.1 %

NYSE MCD opened at $298.75 on Wednesday. The business has a fifty day simple moving average of $296.97 and a 200 day simple moving average of $274.51. McDonald’s has a 12 month low of $243.53 and a 12 month high of $317.90. The firm has a market capitalization of $215.30 billion, a P/E ratio of 25.36, a PEG ratio of 4.05 and a beta of 0.73.

McDonald’s (NYSE:MCD) last announced its earnings results on Monday, July 29th. The fast-food giant reported $2.97 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 178.68%. 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 company earned $3.17 EPS. The business’s revenue for the quarter was down .1% on a year-over-year basis. As a group, sell-side analysts predict that McDonald’s will post 11.71 EPS for the current fiscal year.

McDonald’s Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, December 16th. Investors of record on Monday, December 2nd will be paid a $1.77 dividend. This is a positive change from McDonald’s’s previous quarterly dividend of $1.67. The ex-dividend date is Monday, December 2nd. This represents a $7.08 dividend on an annualized basis and a yield of 2.37%. McDonald’s’s dividend payout ratio (DPR) is presently 60.10%.

Insiders Place Their Bets

In other news, CEO Christopher J. Kempczinski sold 11,727 shares of McDonald’s stock in a transaction dated Monday, September 23rd. The shares were sold at an average price of $300.03, for a total transaction of $3,518,451.81. Following the sale, the chief executive officer now owns 49,885 shares of the company’s stock, valued at approximately $14,966,996.55. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. In related news, CEO Christopher J. Kempczinski sold 11,727 shares of McDonald’s stock in a transaction that occurred on Monday, September 23rd. The stock was sold at an average price of $300.03, for a total transaction of $3,518,451.81. Following the sale, the chief executive officer now directly owns 49,885 shares in the company, valued at $14,966,996.55. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, EVP Marion K. Gross sold 1,498 shares of the stock in a transaction on Tuesday, September 3rd. The stock was sold at an average price of $286.36, for a total value of $428,967.28. Following the completion of the transaction, the executive vice president now owns 1,560 shares of the company’s stock, valued at approximately $446,721.60. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 32,998 shares of company stock worth $9,935,493. 0.23% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Hantz Financial Services Inc. purchased a new position in shares of McDonald’s during the second quarter valued at approximately $6,612,000. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp increased its position in McDonald’s by 58.9% during the 2nd quarter. BRITISH COLUMBIA INVESTMENT MANAGEMENT Corp now owns 138,102 shares of the fast-food giant’s stock valued at $35,194,000 after buying an additional 51,210 shares in the last quarter. BNP Paribas purchased a new position in McDonald’s during the first quarter valued at $7,898,000. First Long Island Investors LLC boosted its holdings in McDonald’s by 16.6% in the first quarter. First Long Island Investors LLC now owns 54,021 shares of the fast-food giant’s stock worth $15,231,000 after acquiring an additional 7,707 shares in the last quarter. Finally, Aviance Capital Partners LLC grew its stake in shares of McDonald’s by 269.8% in the first quarter. Aviance Capital Partners LLC now owns 11,702 shares of the fast-food giant’s stock worth $3,299,000 after acquiring an additional 8,538 shares during the last quarter. 70.29% of the stock is owned by hedge funds and other 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.