D.B. Root & Company LLC Reduces Position in McDonald’s Co. (NYSE:MCD)

D.B. Root & Company LLC cut its stake in shares of McDonald’s Co. (NYSE:MCD) by 30.6% during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 4,171 shares of the fast-food giant’s stock after selling 1,843 shares during the quarter. D.B. Root & Company LLC’s holdings in McDonald’s were worth $1,063,000 as of its most recent SEC filing.

Other hedge funds have also recently made changes to their positions in the company. Dixon Mitchell Investment Counsel Inc. purchased a new position in shares of McDonald’s in the first quarter worth about $28,000. Signature Resources Capital Management LLC purchased a new position in McDonald’s during the 4th quarter worth approximately $31,000. Clear Investment Research LLC purchased a new position in McDonald’s during the 4th quarter worth approximately $38,000. Atlantic Edge Private Wealth Management LLC acquired a new stake in McDonald’s during the 4th quarter valued at approximately $39,000. Finally, Bear Mountain Capital Inc. acquired a new stake in shares of McDonald’s in the fourth quarter worth $43,000. 70.29% of the stock is owned by institutional investors and hedge funds.

Insider Buying and Selling

In other McDonald’s news, EVP Marion K. Gross sold 1,498 shares of the company’s 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 completion of the sale, the executive vice president now directly owns 1,560 shares in the company, valued at approximately $387,285.60. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. In other news, insider Joseph M. Erlinger sold 1,099 shares of the firm’s stock in a transaction that occurred on Thursday, May 23rd. The shares were sold at an average price of $265.13, for a total transaction of $291,377.87. Following the completion of the sale, the insider now owns 15,878 shares in the company, valued at approximately $4,209,734.14. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Marion K. Gross sold 1,498 shares of the company’s stock in a transaction that occurred 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 transaction, the executive vice president now owns 1,560 shares in the company, valued at $387,285.60. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 4,794 shares of company stock worth $1,234,491. 0.23% of the stock is owned by corporate insiders.

McDonald’s Trading Up 0.6 %

MCD traded up $1.55 on Monday, hitting $269.46. 2,918,890 shares of the company’s stock were exchanged, compared to its average volume of 3,592,597. McDonald’s Co. has a fifty-two week low of $243.53 and a fifty-two week high of $302.39. The stock has a market cap of $194.19 billion, a price-to-earnings ratio of 22.87, a P/E/G ratio of 3.58 and a beta of 0.71. The firm has a 50-day moving average price of $257.60 and a 200-day moving average price of $271.42.

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

McDonald’s Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 17th. Investors of record on Tuesday, September 3rd will be issued a $1.67 dividend. The ex-dividend date is Tuesday, September 3rd. This represents a $6.68 annualized dividend and a dividend yield of 2.48%. McDonald’s’s dividend payout ratio is presently 56.71%.

Analysts Set New Price Targets

MCD has been the subject of several recent research reports. KeyCorp reduced their target price on shares of McDonald’s from $310.00 to $305.00 and set an “overweight” rating for the company in a report on Tuesday, July 30th. The Goldman Sachs Group began coverage on McDonald’s in a research note on Thursday, June 13th. They set a “neutral” rating and a $288.00 price objective for the company. Barclays lowered their target price on McDonald’s from $320.00 to $300.00 and set an “overweight” rating on the stock in a research note on Tuesday, July 30th. Citigroup decreased their price target on McDonald’s from $280.00 to $275.00 and set a “neutral” rating for the company in a report on Tuesday, July 30th. Finally, JPMorgan Chase & Co. lowered their price objective on McDonald’s from $290.00 to $270.00 and set an “overweight” rating on the stock in a research report on Tuesday, July 30th. Eleven analysts have rated the stock with a hold rating and twenty have issued a buy rating to the company’s stock. According to MarketBeat, McDonald’s presently has an average rating of “Moderate Buy” and an average price target of $303.00.

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.