Mather Group LLC has increased its stake in McDonald’s Corporation (NYSE: MCD) by 3.9% during the third quarter of 2023. According to a recent filing with the Securities and Exchange Commission (SEC), the firm now holds 55,055 shares of the fast-food giant, following the acquisition of an additional 2,068 shares. This investment is valued at approximately $16.73 million.
Other institutional investors have also adjusted their positions in McDonald’s. Vanguard Group Inc. raised its stake by 1.3% in the second quarter, bringing its total to 71,331,031 shares, valued at around $20.84 billion. State Street Corp increased its holdings by 0.8%, owning 34,828,352 shares worth $10.18 billion. Geode Capital Management LLC grew its investment by 1.7%, holding 16,828,420 shares valued at $4.90 billion. Additionally, Norges Bank acquired a new stake worth approximately $2.78 billion, and Laurel Wealth Advisors LLC significantly increased its investment by 29,382.3%, owning 5,737,548 shares valued at $1.68 billion.
Currently, hedge funds and institutional investors own 70.29% of McDonald’s stock, reflecting strong confidence in the company’s future.
In recent insider trading activity, executive vice president Desiree Ralls-Morrison sold 2,486 shares on December 16, 2023, at an average price of $320.00, totaling $795,520.00. Following this transaction, she retained 6,268 shares, valued at approximately $2.01 million. This sale represented a 28.40% reduction in her ownership.
Chief Financial Officer Ian Frederick Borden also sold 17,134 shares on November 21, 2023, at an average price of $310.00, amounting to $5.31 million. Post-sale, he owns 26,353 shares valued around $8.17 million, reflecting a 39.40% decrease in his holdings. In total, insiders have sold 42,516 shares valued at approximately $13.04 million over the past ninety days, with insiders currently holding 0.25% of the stock.
Recent Financial Performance and Dividend Increase
McDonald’s reported its quarterly earnings on November 5, 2023, revealing earnings per share of $3.22. This figure fell short of analysts’ expectations of $3.33 by $0.11. The company reported a net margin of 32.04% and a negative return on equity of 280.89%. Revenue for the quarter reached $7.08 billion, slightly below the anticipated $7.10 billion. However, this marks a year-over-year revenue increase of 3.0%.
In a positive development for shareholders, McDonald’s declared a quarterly dividend of $1.86 on December 1, 2023, up from the previous quarterly dividend of $1.77. This translates to an annualized dividend of $7.44 and a yield of 2.4%. The ex-dividend date for this payment was December 1, 2023, with a payout ratio currently standing at 63.48%.
Analysts Adjust Price Targets
Equity research analysts have recently updated their ratings and price targets for McDonald’s shares. BMO Capital Markets reaffirmed an “outperform” rating, while Piper Sandler maintained a “neutral” rating with a target price of $325.00. KeyCorp also reiterated an “overweight” rating, setting a price target of $335.00. Morgan Stanley established a similar target at $335.00, while Truist Financial lowered its price objective from $360.00 to $350.00, maintaining a “buy” rating.
Currently, eleven analysts have rated McDonald’s stock as a Buy, sixteen have issued Hold ratings, and two have recommended Sell. The consensus target price stands at $324.57, according to data from MarketBeat.
In summary, McDonald’s continues to attract significant institutional investment and remains a focus of attention for analysts, particularly in light of its recent financial results and dividend increase.
