Federated Hermes Inc. Grows Position in McDonald’s Corporation $MCD

Federated Hermes Inc. raised its stake in shares of McDonald’s Corporation (NYSE:MCD) by 84.1% in the 2nd quarter, according to its most recent disclosure with the SEC. The firm owned 141,775 shares of the fast-food giant’s stock after purchasing an additional 64,757 shares during the period. Federated Hermes Inc.’s holdings in McDonald’s were worth $41,422,000 as of its most recent SEC filing.

Other institutional investors have also recently made changes to their positions in the company. Decker Retirement Planning Inc. increased its holdings in McDonald’s by 142.9% in the 2nd quarter. Decker Retirement Planning Inc. now owns 85 shares of the fast-food giant’s stock worth $25,000 after acquiring an additional 50 shares in the last quarter. Legacy Investment Solutions LLC purchased a new stake in shares of McDonald’s in the second quarter worth $25,000. HFM Investment Advisors LLC bought a new stake in shares of McDonald’s during the 1st quarter valued at $26,000. Nova Wealth Management Inc. purchased a new position in shares of McDonald’s during the 1st quarter valued at $26,000. Finally, GFG Capital LLC bought a new position in McDonald’s in the 2nd quarter worth $29,000. Institutional investors own 70.29% of the company’s stock.

Insider Activity at McDonald’s

In other McDonald’s news, CFO Ian Frederick Borden sold 17,134 shares of the company’s stock in a transaction that occurred on Friday, November 21st. The stock was sold at an average price of $310.00, for a total transaction of $5,311,540.00. Following the sale, the chief financial officer directly owned 26,353 shares in the company, valued at $8,169,430. This represents a 39.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Manuel Jm Steijaert sold 13,134 shares of the firm’s stock in a transaction that occurred on Wednesday, November 5th. The shares were sold at an average price of $300.42, for a total value of $3,945,716.28. Following the completion of the sale, the executive vice president directly owned 4,606 shares of the company’s stock, valued at $1,383,734.52. The trade was a 74.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 40,030 shares of company stock valued at $12,240,570. Insiders own 0.25% of the company’s stock.

Analyst Ratings Changes

A number of research firms have commented on MCD. Citigroup decreased their price target on McDonald’s from $381.00 to $375.00 and set a “buy” rating on the stock in a report on Tuesday, October 21st. Piper Sandler reiterated a “neutral” rating and set a $325.00 target price on shares of McDonald’s in a research report on Wednesday, October 22nd. BMO Capital Markets reissued an “outperform” rating on shares of McDonald’s in a research note on Thursday, November 6th. Barclays dropped their price target on McDonald’s from $362.00 to $358.00 and set an “overweight” rating for the company in a research note on Thursday, November 6th. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of McDonald’s in a research report on Friday, October 31st. Eleven research analysts have rated the stock with a Buy rating, fifteen have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, McDonald’s currently has a consensus rating of “Hold” and a consensus target price of $324.57.

McDonald’s Stock Performance

NYSE MCD opened at $309.57 on Tuesday. The company has a market capitalization of $220.46 billion, a P/E ratio of 26.41, a P/E/G ratio of 3.46 and a beta of 0.52. McDonald’s Corporation has a one year low of $276.53 and a one year high of $326.32. The stock has a 50 day moving average price of $304.14 and a 200-day moving average price of $303.70.

McDonald’s (NYSE:MCD) last announced its quarterly earnings results on Wednesday, November 5th. The fast-food giant reported $3.22 earnings per share for the quarter, missing the consensus estimate of $3.33 by ($0.11). The business had revenue of $7.08 billion during the quarter, compared to the consensus estimate of $7.10 billion. McDonald’s had a negative return on equity of 280.89% and a net margin of 32.04%.The company’s revenue for the quarter was up 3.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $3.23 EPS. As a group, equities analysts predict that McDonald’s Corporation will post 12.25 EPS for the current fiscal year.

McDonald’s Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Stockholders of record on Monday, December 1st will be issued a $1.86 dividend. This is a boost from McDonald’s’s previous quarterly dividend of $1.77. The ex-dividend date is Monday, December 1st. This represents a $7.44 dividend on an annualized basis and a dividend yield of 2.4%. McDonald’s’s payout ratio is presently 63.48%.

About McDonald’s

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.