Asset Dedication LLC Reduces Stake in McDonald’s Co. (NYSE:MCD)

Asset Dedication LLC cut its holdings in shares of McDonald’s Co. (NYSE:MCD) by 9.1% during the 3rd quarter, Holdings Channel.com reports. The institutional investor owned 17,557 shares of the fast-food giant’s stock after selling 1,756 shares during the quarter. Asset Dedication LLC’s holdings in McDonald’s were worth $5,346,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in MCD. Capital Research Global Investors lifted its holdings in McDonald’s by 66.9% in the first quarter. Capital Research Global Investors now owns 5,471,007 shares of the fast-food giant’s stock worth $1,542,550,000 after buying an additional 2,193,769 shares during the period. Swedbank AB purchased a new position in shares of McDonald’s in the 1st quarter valued at approximately $348,206,000. Capital World Investors boosted its position in shares of 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 valued at $1,005,264,000 after purchasing an additional 1,012,534 shares in the last quarter. Mondrian Investment Partners LTD purchased a new stake in McDonald’s in the second quarter worth $110,321,000. Finally, National Bank of Canada FI raised its holdings in McDonald’s by 56.2% in the first quarter. National Bank of Canada FI now owns 1,123,132 shares of the fast-food giant’s stock worth $308,878,000 after purchasing an additional 403,958 shares in the last quarter. Institutional investors own 70.29% of the company’s stock.

McDonald’s Stock Performance

Shares of McDonald’s stock opened at $313.32 on Wednesday. McDonald’s Co. has a fifty-two week low of $243.53 and a fifty-two week high of $315.36. The company has a market capitalization of $225.80 billion, a P/E ratio of 26.60, a P/E/G ratio of 4.05 and a beta of 0.73. The company has a fifty day moving average of $291.90 and a 200 day moving average of $272.91.

McDonald’s (NYSE:MCD) last issued 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). McDonald’s had a net margin of 32.25% and a negative return on equity of 178.68%. The business had revenue of $6.49 billion for the quarter, compared to the consensus estimate of $6.62 billion. During the same period last year, the business posted $3.17 EPS. The firm’s revenue for the quarter was down .1% compared to the same quarter last year. Analysts forecast that McDonald’s Co. will post 11.71 EPS for the current year.

McDonald’s Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, December 16th. Investors of record on Monday, December 2nd will be paid a dividend of $1.77 per share. This represents a $7.08 annualized dividend and a yield of 2.26%. This is a boost from McDonald’s’s previous quarterly dividend of $1.67. The ex-dividend date of this dividend is Monday, December 2nd. McDonald’s’s dividend payout ratio (DPR) is presently 60.10%.

Wall Street Analyst Weigh In

A number of research firms have recently weighed in on MCD. Citigroup upped their target price on shares of McDonald’s from $301.00 to $317.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 2nd. Morgan Stanley lifted their target price on shares of McDonald’s from $296.00 to $340.00 and gave the company an “overweight” rating in a report on Tuesday. Loop Capital restated a “buy” rating and issued a $342.00 price target on shares of McDonald’s in a research note on Tuesday, September 10th. Guggenheim lifted their price objective on McDonald’s from $280.00 to $290.00 and gave the company a “buy” rating in a research note on Friday, August 2nd. Finally, Tigress Financial increased their target price on McDonald’s from $355.00 to $360.00 and gave the stock a “buy” rating in a research note on Tuesday, September 3rd. Ten equities research analysts have rated the stock with a hold rating and twenty have assigned a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $314.92.

Insider Buying and Selling at McDonald’s

In other news, CEO Christopher J. Kempczinski sold 11,727 shares of the firm’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 owns 49,885 shares in the company, valued at $14,966,996.55. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. In other McDonald’s news, CMO Edith Morgan Flatley sold 2,346 shares of McDonald’s stock in a transaction on Monday, October 14th. The shares were sold at an average price of $310.00, for a total value of $727,260.00. Following the completion of the transaction, the chief marketing officer now directly owns 2,905 shares of the company’s stock, valued at $900,550. This trade represents a 0.00 % decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CEO Christopher J. Kempczinski sold 11,727 shares of the company’s 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 owns 49,885 shares in the company, valued at approximately $14,966,996.55. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 34,097 shares of company stock worth $10,221,233. Insiders own 0.23% 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.