McDonald’s (NYSE:MCD) Reaches New 52-Week High – Here’s Why

McDonald’s Co. (NYSE:MCD)’s share price hit a new 52-week high during trading on Friday . The stock traded as high as $319.95 and last traded at $317.45, with a volume of 1978601 shares changing hands. The stock had previously closed at $310.37.

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on MCD shares. Truist Financial decreased their target price on McDonald’s from $342.00 to $340.00 and set a “buy” rating for the company in a research report on Tuesday, February 11th. Robert W. Baird lifted their price objective on shares of McDonald’s from $305.00 to $310.00 and gave the company a “neutral” rating in a report on Tuesday, February 11th. KeyCorp upped their target price on shares of McDonald’s from $320.00 to $335.00 and gave the stock an “overweight” rating in a research note on Tuesday, February 11th. Citigroup lifted their price target on shares of McDonald’s from $336.00 to $360.00 and gave the company a “buy” rating in a research note on Tuesday, February 11th. Finally, BMO Capital Markets increased their price objective on McDonald’s from $335.00 to $340.00 and gave the stock an “outperform” rating in a research note on Tuesday, February 11th. Ten investment analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company’s stock. Based on data from MarketBeat, McDonald’s presently has an average rating of “Moderate Buy” and a consensus price target of $323.61.

McDonald’s Stock Up 3.6 %

The company has a market capitalization of $229.71 billion, a PE ratio of 28.23, a PEG ratio of 3.10 and a beta of 0.71. The business has a 50 day simple moving average of $295.69 and a 200 day simple moving average of $296.32.

McDonald’s (NYSE:MCD) last released its earnings results on Monday, February 10th. The fast-food giant reported $2.83 EPS for the quarter, hitting analysts’ consensus estimates of $2.83. McDonald’s had a net margin of 31.73% and a negative return on equity of 181.63%. Equities analysts expect that McDonald’s Co. will post 12.25 EPS for the current fiscal year.

McDonald’s Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Investors of record on Monday, March 3rd will be given a $1.77 dividend. This represents a $7.08 annualized dividend and a dividend yield of 2.20%. The ex-dividend date is Monday, March 3rd. McDonald’s’s payout ratio is 62.16%.

Insiders Place Their Bets

In related news, EVP Tiffanie L. Boyd sold 1,000 shares of the business’s stock in a transaction on Thursday, February 27th. The shares were sold at an average price of $309.27, for a total transaction of $309,270.00. Following the completion of the transaction, the executive vice president now directly owns 5,564 shares in the company, valued at $1,720,778.28. The trade was a 15.23 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Christopher J. Kempczinski sold 10,500 shares of the stock in a transaction dated Tuesday, February 11th. The stock was sold at an average price of $310.05, for a total value of $3,255,525.00. Following the sale, the chief executive officer now directly owns 32,756 shares in the company, valued at $10,155,997.80. This represents a 24.27 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 33,504 shares of company stock valued at $10,206,575. 0.23% of the stock is owned by company insiders.

Hedge Funds Weigh In On McDonald’s

Several institutional investors and hedge funds have recently modified their holdings of the stock. Northeast Financial Consultants Inc boosted its position in McDonald’s by 0.5% in the 4th quarter. Northeast Financial Consultants Inc now owns 7,486 shares of the fast-food giant’s stock worth $2,170,000 after purchasing an additional 34 shares in the last quarter. GDS Wealth Management grew its position in McDonald’s by 1.4% during the third quarter. GDS Wealth Management now owns 2,504 shares of the fast-food giant’s stock valued at $762,000 after buying an additional 35 shares during the period. Boltwood Capital Management increased its holdings in McDonald’s by 1.9% in the fourth quarter. Boltwood Capital Management now owns 1,882 shares of the fast-food giant’s stock valued at $546,000 after buying an additional 35 shares in the last quarter. Pettee Investors Inc. raised its position in shares of McDonald’s by 0.7% in the fourth quarter. Pettee Investors Inc. now owns 5,401 shares of the fast-food giant’s stock worth $1,566,000 after acquiring an additional 35 shares during the period. Finally, Covestor Ltd boosted its stake in shares of McDonald’s by 4.1% during the 4th quarter. Covestor Ltd now owns 899 shares of the fast-food giant’s stock worth $261,000 after acquiring an additional 35 shares in the last quarter. Institutional investors and hedge funds own 70.29% of the company’s stock.

About McDonald’s

McDonald’s Corp. engages in the operation and franchising of restaurants. It operates through the following segments: U.S., International Operated Markets, and International Developmental Licensed Markets and Corporate. The U.S. segment focuses its operations on the United States. The International Operated Markets segment consists of operations and the franchising of restaurants in Australia, Canada, France, Germany, Italy, the Netherlands, Spain, and the U.K.