Traders Buy Mcdonald’s (MCD) on Weakness

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Traders purchased shares of Mcdonald’s Corp (NYSE:MCD) on weakness during trading on Tuesday. $96.41 million flowed into the stock on the tick-up and $50.61 million flowed out of the stock on the tick-down, for a money net flow of $45.80 million into the stock. Of all stocks tracked, Mcdonald’s had the 17th highest net in-flow for the day. Mcdonald’s traded down ($0.64) for the day and closed at $161.04

Several research analysts have recently weighed in on the company. Wells Fargo & Co upped their target price on Mcdonald’s from $180.00 to $185.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 8th. Royal Bank of Canada reaffirmed a “buy” rating and set a $175.00 target price on shares of Mcdonald’s in a research note on Friday, May 25th. Goldman Sachs Group set a $185.00 target price on Mcdonald’s and gave the stock a “buy” rating in a research note on Tuesday, May 8th. Barclays reaffirmed a “buy” rating and set a $204.00 target price on shares of Mcdonald’s in a research note on Wednesday, May 2nd. Finally, Jefferies Financial Group reaffirmed a “buy” rating and set a $190.00 target price on shares of Mcdonald’s in a research note on Friday, July 27th. Nine research analysts have rated the stock with a hold rating and twenty-two have given a buy rating to the stock. Mcdonald’s has an average rating of “Buy” and an average price target of $181.57.

The company has a quick ratio of 1.45, a current ratio of 1.47 and a debt-to-equity ratio of -5.24. The stock has a market capitalization of $125.02 billion, a P/E ratio of 24.28, a P/E/G ratio of 2.39 and a beta of 0.67.

Mcdonald’s (NYSE:MCD) last issued its quarterly earnings results on Thursday, July 26th. The fast-food giant reported $1.99 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.92 by $0.07. Mcdonald’s had a negative return on equity of 133.89% and a net margin of 25.26%. The firm had revenue of $5.35 billion during the quarter, compared to analysts’ expectations of $5.32 billion. During the same period in the previous year, the business earned $1.73 earnings per share. The firm’s revenue for the quarter was down 11.5% on a year-over-year basis. analysts expect that Mcdonald’s Corp will post 7.65 EPS for the current fiscal year.

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 18th. Investors of record on Tuesday, September 4th will be given a dividend of $1.01 per share. This represents a $4.04 annualized dividend and a dividend yield of 2.51%. The ex-dividend date is Friday, August 31st. Mcdonald’s’s payout ratio is 60.66%.

Several institutional investors and hedge funds have recently modified their holdings of MCD. Rainier Group Investment Advisory LLC purchased a new stake in Mcdonald’s in the 1st quarter valued at $102,000. Elmwood Wealth Management Inc. purchased a new stake in Mcdonald’s in the 1st quarter valued at $104,000. CSat Investment Advisory L.P. purchased a new stake in Mcdonald’s in the 2nd quarter valued at $104,000. CX Institutional purchased a new stake in Mcdonald’s in the 2nd quarter valued at $109,000. Finally, Quad Cities Investment Group LLC purchased a new stake in Mcdonald’s in the 2nd quarter valued at $110,000. Hedge funds and other institutional investors own 67.84% of the company’s stock.

About Mcdonald’s (NYSE:MCD)

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer various food products, soft drinks, coffee, and other beverages, as well as breakfast menu. As of December 31, 2017, the company operated 37,241 restaurants, including 34,108 franchised restaurants comprising 21,366 franchised to conventional franchisees, 6,945 licensed to developmental licensees, and 5,797 licensed to foreign affiliates; and 3,133 company-operated restaurants.

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