McDonald’s (NYSE:MCD) Cut to Neutral at Guggenheim

McDonald’s (NYSE:MCD) was downgraded by equities researchers at Guggenheim from a “buy” rating to a “neutral” rating in a research note issued to investors on Wednesday, Marketbeat Ratings reports. They currently have a $285.00 target price on the fast-food giant’s stock, down from their previous target price of $290.00. Guggenheim’s price target points to a potential downside of 5.51% from the stock’s current price.

Several other equities research analysts have also commented on the stock. Barclays increased their price objective on shares of McDonald’s from $300.00 to $325.00 and gave the company an “overweight” rating in a research note on Tuesday. Bank of America lifted their price target on McDonald’s from $308.00 to $322.00 and gave the stock a “neutral” rating in a report on Monday. Morgan Stanley raised their target price on McDonald’s from $296.00 to $340.00 and gave the company an “overweight” rating in a research report on Tuesday, October 15th. Loop Capital reissued a “buy” rating on shares of McDonald’s in a report on Friday, October 18th. Finally, Argus upgraded shares of McDonald’s from a “hold” rating to a “buy” rating in a report on Tuesday, October 8th. Thirteen investment 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, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $318.22.

McDonald’s Trading Up 1.0 %

Shares of McDonald’s stock opened at $301.61 on Wednesday. The company has a market capitalization of $217.36 billion, a P/E ratio of 25.60, a price-to-earnings-growth ratio of 4.05 and a beta of 0.73. The stock 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.

McDonald’s (NYSE:MCD) last posted its earnings results 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). The firm had revenue of $6.49 billion during the quarter, compared to the consensus estimate of $6.62 billion. McDonald’s had a negative return on equity of 178.68% and a net margin of 32.25%. The business’s revenue was down .1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $3.17 EPS. On average, analysts predict that McDonald’s will post 11.71 EPS for the current year.

Insider Activity at McDonald’s

In other McDonald’s news, CEO Christopher J. Kempczinski sold 11,727 shares of the stock in a transaction that occurred on Monday, September 23rd. The shares were sold at an average price of $300.03, for a total value 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. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. In related news, CEO Christopher J. Kempczinski sold 11,727 shares of the business’s stock in a transaction dated 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 completion of the transaction, 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 filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Marion K. Gross sold 1,498 shares of the firm’s stock in a transaction dated Tuesday, September 3rd. The shares were sold at an average price of $286.36, for a total value of $428,967.28. Following the completion of the sale, the executive vice president now directly owns 1,560 shares in the company, valued at approximately $446,721.60. The trade was a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 32,998 shares of company stock valued at $9,935,493. Corporate insiders own 0.23% of the company’s stock.

Hedge Funds Weigh In On McDonald’s

A number of hedge funds and other institutional investors have recently bought and sold shares of MCD. Legal & General Group Plc lifted its holdings in shares of McDonald’s by 3.2% during the 2nd quarter. Legal & General Group Plc now owns 6,149,080 shares of the fast-food giant’s stock worth $1,567,030,000 after acquiring an additional 188,888 shares during the last quarter. Capital Research Global Investors raised its position in McDonald’s by 66.9% during the first quarter. Capital Research Global Investors now owns 5,471,007 shares of the fast-food giant’s stock valued at $1,542,550,000 after purchasing an additional 2,193,769 shares in the last quarter. Ameriprise Financial Inc. raised its position in McDonald’s by 8.0% during the second quarter. Ameriprise Financial Inc. now owns 4,761,625 shares of the fast-food giant’s stock valued at $1,216,677,000 after purchasing an additional 354,196 shares in the last quarter. Capital World Investors lifted its stake in McDonald’s by 39.7% during the first quarter. Capital World Investors now owns 3,565,398 shares of the fast-food giant’s stock worth $1,005,264,000 after purchasing an additional 1,012,534 shares during the last quarter. Finally, International Assets Investment Management LLC boosted its holdings in shares of McDonald’s by 31,151.1% in the 3rd quarter. International Assets Investment Management LLC now owns 2,319,142 shares of the fast-food giant’s stock worth $706,202,000 after purchasing an additional 2,311,721 shares in the last quarter. 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.