Convergence Investment Partners LLC Lowers Stock Holdings in McDonald’s Corporation $MCD

Convergence Investment Partners LLC reduced its position in shares of McDonald’s Corporation (NYSE:MCD) by 5.7% in the 2nd quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm 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 as of its most recent filing with the Securities & Exchange Commission.

A number of other hedge funds and other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. boosted its holdings in McDonald’s by 0.3% during the 1st quarter. Vanguard Group Inc. now owns 70,409,095 shares of the fast-food giant’s stock valued at $21,993,689,000 after acquiring an additional 239,753 shares during the period. Price T Rowe Associates Inc. MD boosted its stake in shares of McDonald’s by 16.8% in the first quarter. Price T Rowe Associates Inc. MD now owns 9,341,460 shares of the fast-food giant’s stock valued at $2,917,993,000 after purchasing an additional 1,344,954 shares during the period. Northern Trust Corp boosted its stake in shares of McDonald’s by 1.1% in the first quarter. Northern Trust Corp now owns 8,965,159 shares of the fast-food giant’s stock valued at $2,800,447,000 after purchasing an additional 97,966 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in McDonald’s by 2.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 5,142,473 shares of the fast-food giant’s stock valued at $1,606,354,000 after buying an additional 123,454 shares during the period. Finally, Goldman Sachs Group Inc. boosted its position in McDonald’s by 19.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 4,982,825 shares of the fast-food giant’s stock valued at $1,556,485,000 after buying an additional 815,768 shares during the period. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

McDonald’s Stock Performance

McDonald’s stock opened at $309.97 on Tuesday. McDonald’s Corporation has a fifty-two week low of $276.53 and a fifty-two week high of $326.32. The company has a market capitalization of $221.19 billion, a P/E ratio of 26.56, a PEG ratio of 3.23 and a beta of 0.50. The stock has a 50-day simple moving average of $306.52 and a 200-day simple moving average of $305.71.

McDonald’s (NYSE:MCD) last issued its quarterly earnings data on Wednesday, August 6th. The fast-food giant reported $3.19 earnings per share for the quarter, beating analysts’ consensus estimates 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 quarter in the previous year, the business earned $2.97 earnings per share. The firm’s revenue for the quarter was up 5.4% on a year-over-year basis. As a group, analysts forecast that McDonald’s Corporation will post 12.25 earnings per share for the current year.

McDonald’s Increases Dividend

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

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Citigroup decreased their price target on shares of McDonald’s from $381.00 to $375.00 and set a “buy” rating for the company in a research report on Tuesday, October 21st. Morgan Stanley set a $335.00 price objective on McDonald’s in a research note on Friday, October 17th. Barclays lifted their price objective on McDonald’s from $360.00 to $362.00 and gave the company an “overweight” rating in a research note on Wednesday, October 22nd. BTIG Research reiterated a “neutral” rating on shares of McDonald’s in a research note on Friday. Finally, TD Cowen lifted their price target on shares of McDonald’s from $305.00 to $315.00 and gave the stock a “hold” rating in a research note on Wednesday, August 6th. Eleven analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $323.43.

Insider Activity at McDonald’s

In other news, EVP Desiree Ralls-Morrison sold 2,487 shares of the company’s stock in a transaction dated Wednesday, August 6th. The shares were sold at an average price of $310.00, for a total value of $770,970.00. Following the completion of the sale, the executive vice president directly owned 8,754 shares of the company’s stock, valued at approximately $2,713,740. This represents a 22.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CMO Edith Morgan Flatley sold 1,000 shares of the company’s stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $315.00, for a total transaction of $315,000.00. Following the completion of the sale, the chief marketing officer directly 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 worth $1,692,186 in the last 90 days. 0.25% of the stock is owned by insiders.

McDonald’s 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.