McDonald’s Target of Unusually Large Options Trading (MCD)

McDonald’s Corporation (NYSE:MCD) was the target of some unusual options trading on Wednesday. Traders acquired 157,415 call options on the stock. This is an increase of 2,415% compared to the typical volume of 6,260 call options.

McDonald’s (NYSE MCD) opened at $172.87 on Friday. The stock has a market capitalization of $137,092.02, a price-to-earnings ratio of 26.87, a price-to-earnings-growth ratio of 2.81 and a beta of 0.67. The company has a debt-to-equity ratio of -8.17, a current ratio of 1.28 and a quick ratio of 1.27. McDonald’s has a 52-week low of $117.71 and a 52-week high of $173.17.

McDonald’s (NYSE:MCD) last released its quarterly earnings data on Tuesday, October 24th. The fast-food giant reported $1.76 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.75 by $0.01. The firm had revenue of $5.75 billion during the quarter, compared to analysts’ expectations of $5.75 billion. McDonald’s had a negative return on equity of 216.45% and a net margin of 24.19%. McDonald’s’s revenue was down 10.4% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.62 earnings per share. equities analysts expect that McDonald’s will post 6.52 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Friday, December 15th. Stockholders of record on Friday, December 1st will be given a $1.01 dividend. The ex-dividend date is Thursday, November 30th. This represents a $4.04 dividend on an annualized basis and a dividend yield of 2.34%. This is a boost from McDonald’s’s previous quarterly dividend of $0.94. McDonald’s’s dividend payout ratio (DPR) is currently 58.30%.

In other news, insider Stephen Easterbrook sold 171,577 shares of the stock in a transaction that occurred on Tuesday, November 21st. The stock was sold at an average price of $168.32, for a total value of $28,879,840.64. Following the completion of the sale, the insider now directly owns 49,778 shares of the company’s stock, valued at $8,378,632.96. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP James R. Sappington sold 8,046 shares of the stock in a transaction that occurred on Wednesday, October 25th. The shares were sold at an average price of $165.00, for a total value of $1,327,590.00. Following the completion of the sale, the vice president now directly owns 15,739 shares of the company’s stock, valued at $2,596,935. The disclosure for this sale can be found here. 0.24% of the stock is currently owned by corporate insiders.

Hedge funds have recently made changes to their positions in the company. Canada Pension Plan Investment Board increased its position in shares of McDonald’s by 1.0% in the second quarter. Canada Pension Plan Investment Board now owns 449,237 shares of the fast-food giant’s stock valued at $68,805,000 after buying an additional 4,300 shares in the last quarter. Legacy Capital Partners Inc. increased its position in shares of McDonald’s by 7.0% in the first quarter. Legacy Capital Partners Inc. now owns 26,154 shares of the fast-food giant’s stock valued at $3,390,000 after buying an additional 1,706 shares in the last quarter. Teacher Retirement System of Texas increased its position in shares of McDonald’s by 10.6% in the second quarter. Teacher Retirement System of Texas now owns 467,212 shares of the fast-food giant’s stock valued at $71,558,000 after buying an additional 44,899 shares in the last quarter. Holderness Investments Co. boosted its stake in shares of McDonald’s by 323.7% during the first quarter. Holderness Investments Co. now owns 10,589 shares of the fast-food giant’s stock valued at $1,372,000 after acquiring an additional 8,090 shares during the last quarter. Finally, Buckingham Asset Management LLC boosted its stake in shares of McDonald’s by 157.5% during the second quarter. Buckingham Asset Management LLC now owns 18,973 shares of the fast-food giant’s stock valued at $2,906,000 after acquiring an additional 11,604 shares during the last quarter. Institutional investors and hedge funds own 67.40% of the company’s stock.

Several equities research analysts recently weighed in on the company. ValuEngine downgraded McDonald’s from a “buy” rating to a “hold” rating in a report on Friday. Goldman Sachs Group set a $173.00 price target on McDonald’s and gave the stock a “buy” rating in a report on Wednesday, November 8th. Zacks Investment Research downgraded McDonald’s from a “buy” rating to a “hold” rating in a report on Friday, October 27th. Deutsche Bank set a $185.00 price target on McDonald’s and gave the stock a “buy” rating in a report on Thursday, October 26th. Finally, Credit Suisse Group increased their price target on McDonald’s from $170.00 to $178.00 and gave the stock an “outperform” rating in a report on Wednesday, October 25th. Eleven analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Buy” and a consensus price target of $171.95.

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About McDonald’s

McDonald’s Corporation (McDonald’s) operates and franchises McDonald’s restaurants. The Company’s restaurants serve a locally relevant menu of food and drinks sold at various price points in over 100 countries. The Company’s segments include U.S., International Lead Markets, High Growth Markets, and Foundational Markets and Corporate.

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