McDonald's (NYSE:MCD) Trading Down 0.7% - Should You Sell?

Shares of McDonald's Co. (NYSE:MCD - Get Free Report) were down 0.7% during trading on Tuesday . The stock traded as low as $313.46 and last traded at $313.76. Approximately 531,207 shares traded hands during mid-day trading, a decline of 85% from the average daily volume of 3,577,307 shares. The stock had previously closed at $316.07.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on the company. Erste Group Bank upgraded McDonald's from a "hold" rating to a "strong-buy" rating in a report on Monday, March 17th. KeyCorp boosted their target price on shares of McDonald's from $335.00 to $340.00 and gave the company an "overweight" rating in a research note on Thursday, March 27th. Truist Financial lowered their price target on shares of McDonald's from $342.00 to $340.00 and set a "buy" rating for the company in a report on Tuesday, February 11th. Citigroup reduced their price objective on shares of McDonald's from $360.00 to $353.00 and set a "buy" rating on the stock in a research note on Thursday, April 3rd. Finally, Loop Capital reaffirmed a "buy" rating and issued a $342.00 target price on shares of McDonald's in a research note on Friday, January 3rd. Nine equities research analysts have rated the stock with a hold rating, sixteen have issued a buy rating and one has given a strong buy rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $322.87.

McDonald's Stock Performance

The firm has a market cap of $222.07 billion, a price-to-earnings ratio of 27.29, a price-to-earnings-growth ratio of 3.10 and a beta of 0.62. The business's 50 day moving average price is $307.38 and its 200-day moving average price is $299.35.

McDonald's (NYSE:MCD - Get Free Report) last announced its quarterly earnings results on Monday, February 10th. The fast-food giant reported $2.83 EPS for the quarter, meeting the consensus estimate of $2.83. McDonald's had a net margin of 31.73% and a negative return on equity of 181.63%. On average, analysts forecast that McDonald's Co. will post 12.25 earnings per share for the current fiscal year.

McDonald's Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, March 17th. Stockholders of record on Monday, March 3rd were issued a dividend of $1.77 per share. This represents a $7.08 annualized dividend and a dividend yield of 2.28%. The ex-dividend date of this dividend was Monday, March 3rd. McDonald's's dividend payout ratio is 62.16%.

Insider Activity

In other news, insider Joseph M. Erlinger sold 300 shares of McDonald's stock in a transaction that occurred on Thursday, January 23rd. The shares were sold at an average price of $280.75, for a total value of $84,225.00. Following the transaction, the insider now owns 7,887 shares of the company's stock, valued at $2,214,275.25. This trade represents a 3.66 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Christopher J. Kempczinski sold 10,500 shares of the stock in a transaction that occurred on Tuesday, February 11th. The shares were sold at an average price of $310.05, for a total value of $3,255,525.00. Following the completion of the sale, the chief executive officer now directly owns 32,756 shares of the company's stock, 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. Over the last quarter, insiders have sold 27,497 shares of company stock worth $8,461,400. 0.23% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On McDonald's

A number of institutional investors have recently modified their holdings of the stock. Granite Bay Wealth Management LLC boosted its position in shares of McDonald's by 3.5% in the 1st quarter. Granite Bay Wealth Management LLC now owns 988 shares of the fast-food giant's stock worth $309,000 after purchasing an additional 33 shares during the last quarter. CVA Family Office LLC raised its stake in shares of McDonald's by 1.9% during the 1st quarter. CVA Family Office LLC now owns 1,793 shares of the fast-food giant's stock worth $560,000 after purchasing an additional 33 shares in the last quarter. Consilium Wealth Advisory LLC lifted its stake in McDonald's by 2.5% in the 1st quarter. Consilium Wealth Advisory LLC now owns 1,334 shares of the fast-food giant's stock valued at $417,000 after purchasing an additional 33 shares during the last quarter. Northeast Financial Consultants Inc boosted its position in McDonald's by 0.5% during the fourth 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 during the period. Finally, Tealwood Asset Management Inc. grew its position in shares of McDonald's by 0.4% in the first quarter. Tealwood Asset Management Inc. now owns 8,117 shares of the fast-food giant's stock valued at $2,535,000 after purchasing an additional 34 shares during the last quarter. 70.29% of the stock is owned by institutional investors.

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.