Convergence Investment Partners LLC Trims Stock Position in McDonald’s Corporation $MCD

Convergence Investment Partners LLC lowered its stake in shares of McDonald’s Corporation (NYSE:MCD) by 5.7% in the second quarter, according to its most recent 13F filing with the SEC. The fund owned 859 shares of the fast-food giant’s stock after selling 52 shares during the period. Convergence Investment Partners LLC’s holdings in McDonald’s were worth $251,000 at the end of the most recent quarter.

A number of other institutional investors have also modified their holdings of the stock. HFM Investment Advisors LLC purchased a new position in McDonald’s during the first quarter valued at approximately $26,000. Nova Wealth Management Inc. purchased a new position in shares of McDonald’s during the 1st quarter valued at approximately $26,000. GFG Capital LLC purchased a new position in shares of McDonald’s during the 2nd quarter valued at approximately $29,000. Abound Financial LLC purchased a new position in shares of McDonald’s during the 1st quarter valued at approximately $30,000. Finally, Redmont Wealth Advisors LLC purchased a new position in shares of McDonald’s during the 1st quarter valued at approximately $31,000. Hedge funds and other institutional investors own 70.29% of the company’s stock.

McDonald’s Price Performance

MCD stock opened at $309.97 on Tuesday. The business has a 50 day simple moving average of $306.52 and a 200-day simple moving average of $305.71. The firm has a market capitalization of $221.19 billion, a PE ratio of 26.56, a price-to-earnings-growth ratio of 3.23 and a beta of 0.50. McDonald’s Corporation has a 1 year low of $276.53 and a 1 year high of $326.32.

McDonald’s (NYSE:MCD) last issued its earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.15 by $0.04. McDonald’s had a negative return on equity of 225.52% and a net margin of 32.21%.The company had revenue of $6.84 billion during the quarter, compared to analysts’ expectations of $6.68 billion. During the same period in the prior year, the business earned $2.97 EPS. The firm’s quarterly revenue was up 5.4% on a year-over-year basis. On average, equities research analysts expect that McDonald’s Corporation will post 12.25 EPS for the current year.

McDonald’s Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, December 15th. Stockholders of record on Monday, December 1st will be paid a $1.86 dividend. This is a positive change from McDonald’s’s previous quarterly dividend of $1.77. The ex-dividend date of this dividend is Monday, December 1st. This represents a $7.44 annualized dividend and a dividend yield of 2.4%. McDonald’s’s dividend payout ratio is currently 60.67%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on MCD. BMO Capital Markets lifted their price objective on shares of McDonald’s from $350.00 to $360.00 and gave the company an “outperform” rating in a report on Thursday, September 4th. Evercore ISI lifted their price target on McDonald’s from $350.00 to $360.00 and gave the company an “outperform” rating in a research note on Friday, August 8th. Wells Fargo & Company cut their price target on McDonald’s from $350.00 to $340.00 and set an “overweight” rating for the company in a research note on Thursday, October 16th. The Goldman Sachs Group upgraded McDonald’s from a “neutral” rating to a “buy” rating and set a $345.00 price objective for the company in a research report on Thursday, July 10th. Finally, Mizuho set a $300.00 price objective on McDonald’s in a research report on Monday. Eleven research analysts have rated the stock with a Buy rating, fourteen have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, McDonald’s currently has a consensus rating of “Hold” and an average price target of $323.43.

Insider Activity

In related news, EVP Desiree Ralls-Morrison sold 2,487 shares of the stock in a transaction that occurred on Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total value of $770,970.00. Following the completion of the transaction, the executive vice president directly owned 8,754 shares in the company, valued at approximately $2,713,740. This represents a 22.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CMO Edith Morgan Flatley sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 2nd. The stock was sold at an average price of $315.00, for a total value of $315,000.00. Following the completion of the transaction, the chief marketing officer owned 6,858 shares of the company’s stock, valued at $2,160,270. The trade was a 12.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 5,463 shares of company stock valued at $1,692,186 in the last 90 days. Company insiders own 0.25% of the company’s stock.

McDonald’s Company Profile

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.