McDonald’s (NYSE:MCD) Reaches New 52-Week Low Following Analyst Downgrade

McDonald’s Co. (NYSE:MCD) shares hit a new 52-week low during trading on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $300.00 to $290.00. JPMorgan Chase & Co. currently has an overweight rating on the stock. McDonald’s traded as low as $244.20 and last traded at $245.16, with a volume of 1093015 shares changing hands. The stock had previously closed at $247.85.

A number of other research analysts have also issued reports on the stock. Morgan Stanley decreased their target price on shares of McDonald’s from $327.00 to $320.00 and set an “overweight” rating on the stock in a research report on Friday, April 12th. UBS Group decreased their target price on shares of McDonald’s from $340.00 to $335.00 and set a “buy” rating on the stock in a research report on Friday, April 5th. Wedbush decreased their target price on shares of McDonald’s from $330.00 to $300.00 and set an “outperform” rating on the stock in a research report on Friday, April 26th. Truist Financial decreased their target price on shares of McDonald’s from $320.00 to $300.00 and set a “buy” rating on the stock in a research report on Tuesday. Finally, KeyCorp reduced their price target on shares of McDonald’s from $315.00 to $310.00 and set an “overweight” rating on the stock in a research report on Wednesday, May 1st. Ten investment analysts have rated the stock with a hold rating and twenty have given a buy rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $312.82.

Insiders Place Their Bets

In related news, EVP Marion K. Gross sold 1,498 shares of the firm’s stock in a transaction dated Wednesday, July 3rd. The shares were sold at an average price of $248.26, for a total transaction of $371,893.48. Following the transaction, the executive vice president now directly owns 1,560 shares of the company’s stock, valued at $387,285.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, EVP Marion K. Gross sold 1,498 shares of the firm’s stock in a transaction dated Wednesday, July 3rd. The shares were sold at an average price of $248.26, for a total transaction of $371,893.48. Following the transaction, the executive vice president now directly owns 1,560 shares of the company’s stock, valued at $387,285.60. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Joseph M. Erlinger sold 1,098 shares of the firm’s stock in a transaction dated Tuesday, April 23rd. The shares were sold at an average price of $276.64, for a total transaction of $303,750.72. Following the transaction, the insider now directly owns 16,977 shares in the company, valued at $4,696,517.28. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 5,593 shares of company stock worth $1,472,518. 0.23% of the stock is currently owned by company insiders.

Institutional Trading of McDonald’s

Several hedge funds have recently added to or reduced their stakes in the stock. 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 fourth quarter valued at approximately $31,000. Clear Investment Research LLC purchased a new position in McDonald’s during the fourth quarter valued at approximately $38,000. Atlantic Edge Private Wealth Management LLC purchased a new position in McDonald’s during the fourth quarter valued at approximately $39,000. Finally, Keener Financial Planning LLC purchased a new position in McDonald’s during the fourth quarter valued at approximately $39,000. Institutional investors own 70.29% of the company’s stock.

McDonald’s Price Performance

The firm’s 50 day moving average is $259.19 and its 200 day moving average is $276.86. The company has a market cap of $180.49 billion, a PE ratio of 21.26, a PEG ratio of 2.79 and a beta of 0.71.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data on Tuesday, April 30th. The fast-food giant reported $2.70 EPS for the quarter, missing the consensus estimate of $2.71 by ($0.01). McDonald’s had a net margin of 33.36% and a negative return on equity of 180.74%. The firm had revenue of $6.17 billion for the quarter, compared to analysts’ expectations of $6.16 billion. During the same period in the prior year, the firm posted $2.63 EPS. McDonald’s’s revenue was up 4.6% on a year-over-year basis. As a group, analysts anticipate that McDonald’s Co. will post 12.19 EPS for the current year.

McDonald’s Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, June 17th. Shareholders of record on Monday, June 3rd were paid a $1.67 dividend. The ex-dividend date was Monday, June 3rd. This represents a $6.68 dividend on an annualized basis and a yield of 2.67%. McDonald’s’s dividend payout ratio is presently 56.71%.

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.