McDonald’s (NYSE:MCD) Price Target Cut to $278.00 by Analysts at Bank of America

McDonald’s (NYSE:MCD) had its price objective reduced by Bank of America from $288.00 to $278.00 in a research note released on Tuesday, Benzinga reports. Bank of America currently has a neutral rating on the fast-food giant’s stock.

Other analysts also recently issued reports about the company. BMO Capital Markets decreased their target price on McDonald’s from $330.00 to $315.00 and set an outperform rating for the company in a research report on Tuesday. Stifel Nicolaus decreased their target price on McDonald’s from $285.00 to $265.00 and set a hold rating for the company in a research report on Monday, July 22nd. Loop Capital decreased their target price on McDonald’s from $357.00 to $342.00 and set a buy rating for the company in a research report on Tuesday. Citigroup decreased their target price on McDonald’s from $280.00 to $275.00 and set a neutral rating for the company in a research report on Tuesday. Finally, Jefferies Financial Group decreased their target price 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. Eleven analysts have rated the stock with a hold rating and twenty have issued a buy rating to the company. Based on data from MarketBeat.com, McDonald’s currently has a consensus rating of Moderate Buy and an average price target of $303.00.

McDonald’s Trading Up 3.0 %

Shares of McDonald’s stock opened at $276.70 on Tuesday. The business’s fifty day simple moving average is $255.91 and its 200 day simple moving average is $272.90. The firm has a market capitalization of $199.41 billion, a P/E ratio of 23.49, a price-to-earnings-growth ratio of 3.28 and a beta of 0.71. McDonald’s has a 12 month low of $243.53 and a 12 month high of $302.39.

McDonald’s (NYSE:MCD) last issued its quarterly 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). The business had revenue of $6.49 billion for the quarter, compared to the consensus estimate of $6.62 billion. McDonald’s had a negative return on equity of 178.92% and a net margin of 32.25%. The business’s revenue was down .1% compared to the same quarter last year. During the same quarter last year, the business posted $3.17 earnings per share. Analysts predict that McDonald’s will post 11.78 EPS for the current fiscal year.

McDonald’s Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 17th. Shareholders of record on Tuesday, September 3rd will be paid a dividend of $1.67 per share. This represents a $6.68 annualized dividend and a yield of 2.41%. The ex-dividend date of this dividend is Tuesday, September 3rd. McDonald’s’s dividend payout ratio (DPR) is currently 56.71%.

Insiders Place Their Bets

In other news, EVP Jonathan Banner sold 800 shares of the business’s stock in a transaction dated Friday, May 10th. The stock was sold at an average price of $275.02, for a total value of $220,016.00. Following the completion of the sale, the executive vice president now owns 19 shares of the company’s stock, valued at approximately $5,225.38. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. In other news, insider Joseph M. Erlinger sold 1,099 shares of the business’s stock in a transaction dated Thursday, May 23rd. The stock was sold at an average price of $265.13, for a total value of $291,377.87. Following the completion of the sale, the insider now owns 15,878 shares of the company’s stock, valued at approximately $4,209,734.14. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Jonathan Banner sold 800 shares of the business’s stock in a transaction dated Friday, May 10th. The shares were sold at an average price of $275.02, for a total value of $220,016.00. Following the completion of the sale, the executive vice president now directly owns 19 shares of the company’s stock, valued at approximately $5,225.38. The disclosure for this sale can be found here. Insiders sold a total of 5,594 shares of company stock valued at $1,454,507 over the last 90 days. Insiders own 0.23% of the company’s stock.

Institutional Investors Weigh In On McDonald’s

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Norges Bank purchased a new position in McDonald’s during the 4th quarter valued at about $2,684,899,000. Gallagher Fiduciary Advisors LLC increased its holdings in McDonald’s by 141,160.9% during the 4th quarter. Gallagher Fiduciary Advisors LLC now owns 5,613,710 shares of the fast-food giant’s stock valued at $1,664,521,000 after purchasing an additional 5,609,736 shares during the period. Capital Research Global Investors increased its holdings in McDonald’s by 66.9% during the 1st quarter. Capital Research Global Investors now owns 5,471,007 shares of the fast-food giant’s stock valued at $1,542,550,000 after purchasing an additional 2,193,769 shares during the period. International Assets Investment Management LLC increased its holdings in McDonald’s by 10,702.5% during the 4th quarter. International Assets Investment Management LLC now owns 2,174,426 shares of the fast-food giant’s stock valued at $644,739,000 after purchasing an additional 2,154,297 shares during the period. Finally, Swedbank AB purchased a new position in McDonald’s during the 1st quarter valued at about $348,206,000. Institutional investors own 70.29% of the company’s stock.

McDonald’s Company 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.