Van ECK Associates Corp Boosts Stake in McDonald’s Co. (NYSE:MCD)

Van ECK Associates Corp raised its holdings in shares of McDonald’s Co. (NYSE:MCD) by 1.2% in the 2nd quarter, Holdings Channel.com reports. The institutional investor owned 16,358 shares of the fast-food giant’s stock after acquiring an additional 192 shares during the period. Van ECK Associates Corp’s holdings in McDonald’s were worth $4,169,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Dixon Mitchell Investment Counsel Inc. purchased a new position in McDonald’s during the first quarter worth about $28,000. Clear Investment Research LLC purchased a new position in shares of McDonald’s in the 4th quarter worth about $38,000. Atlantic Edge Private Wealth Management LLC purchased a new position in shares of McDonald’s in the 4th quarter worth about $39,000. Kings Path Partners LLC purchased a new position in shares of McDonald’s in the 2nd quarter worth about $38,000. Finally, Accent Capital Management LLC purchased a new position in shares of McDonald’s in the 4th quarter worth about $44,000. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

McDonald’s Price Performance

NYSE MCD opened at $287.89 on Thursday. The business’s fifty day moving average price is $267.35 and its 200-day moving average price is $270.81. The stock has a market capitalization of $206.52 billion, a price-to-earnings ratio of 24.44, a PEG ratio of 3.86 and a beta of 0.71. McDonald’s Co. has a 1-year low of $243.53 and a 1-year high of $302.39.

McDonald’s (NYSE:MCD) last announced its earnings results on Monday, July 29th. The fast-food giant reported $2.97 EPS for the quarter, missing analysts’ consensus estimates of $3.07 by ($0.10). McDonald’s had a negative return on equity of 178.68% and a net margin of 32.25%. The company had revenue of $6.49 billion during the quarter, compared to the consensus estimate of $6.62 billion. During the same period in the prior year, the business posted $3.17 earnings per share. McDonald’s’s revenue for the quarter was down .1% compared to the same quarter last year. Equities research analysts anticipate that McDonald’s Co. will post 11.67 EPS for the current year.

McDonald’s Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 17th. Investors of record on Tuesday, September 3rd will be issued a $1.67 dividend. The ex-dividend date is Tuesday, September 3rd. This represents a $6.68 dividend on an annualized basis and a yield of 2.32%. McDonald’s’s dividend payout ratio is currently 56.71%.

Analysts Set New Price Targets

A number of research firms have recently issued reports on MCD. Evercore ISI upped their price objective on McDonald’s from $300.00 to $320.00 and gave the stock an “outperform” rating in a report on Monday, August 19th. TD Cowen lowered McDonald’s from a “buy” rating to a “hold” rating and lowered their target price for the company from $285.00 to $280.00 in a research note on Wednesday, July 31st. Jefferies Financial Group lowered their price target on McDonald’s from $320.00 to $310.00 and set a “buy” rating for the company in a research report on Monday, July 29th. The Goldman Sachs Group assumed coverage on McDonald’s in a research report on Thursday, June 13th. They issued a “neutral” rating and a $288.00 target price for the company. Finally, Bank of America decreased their target price on McDonald’s from $288.00 to $278.00 and set a “neutral” rating for the company in a research report on Tuesday, July 30th. Eleven analysts have rated the stock with a hold rating and twenty have assigned a buy rating to the stock. Based on data from MarketBeat.com, McDonald’s currently has an average rating of “Moderate Buy” and a consensus price target of $303.89.

Insider Buying and Selling

In related news, EVP Marion K. Gross sold 1,498 shares of the firm’s stock in a transaction on Wednesday, July 3rd. The stock was sold at an average price of $248.26, for a total value of $371,893.48. Following the transaction, the executive vice president now directly owns 1,560 shares of the company’s stock, valued at approximately $387,285.60. The sale was disclosed in a legal filing with the SEC, which is available through the SEC website. In other McDonald’s news, EVP Marion K. Gross sold 1,498 shares of the firm’s stock in a transaction dated Wednesday, July 3rd. The stock was sold at an average price of $248.26, for a total transaction of $371,893.48. Following the sale, 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 SEC, which is available through this hyperlink. Also, insider Joseph M. Erlinger sold 1,098 shares of the firm’s stock in a transaction dated Friday, August 23rd. The shares were sold at an average price of $288.70, for a total value of $316,992.60. Following the sale, the insider now directly owns 12,583 shares in the company, valued at $3,632,712.10. The disclosure for this sale can be found here. In the last three months, insiders have sold 6,291 shares of company stock valued at $1,689,073. 0.23% of the stock is owned by company insiders.

McDonald’s Profile

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.