McDonald’s (NYSE:MCD) Stock Price Down 1% – Should You Sell?

McDonald’s Co. (NYSE:MCD) was down 1% on Monday . The stock traded as low as $305.01 and last traded at $310.62. Approximately 1,319,634 shares changed hands during trading, a decline of 63% from the average daily volume of 3,548,021 shares. The stock had previously closed at $313.68.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on MCD shares. TD Securities reissued a “hold” rating and set a $300.00 price objective on shares of McDonald’s in a report on Monday, February 10th. BMO Capital Markets reaffirmed an “outperform” rating and issued a $345.00 price target (up from $340.00) on shares of McDonald’s in a report on Monday, May 5th. Bank of America raised their price target on McDonald’s from $312.00 to $316.00 and gave the stock a “neutral” rating in a report on Tuesday, February 11th. BTIG Research reaffirmed a “neutral” rating on shares of McDonald’s in a report on Tuesday, April 22nd. Finally, Morgan Stanley cut their price target on McDonald’s from $340.00 to $335.00 and set an “overweight” rating for the company in a report on Monday, March 17th. Eleven equities research analysts have rated the stock with a hold rating, sixteen have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $325.91.

McDonald’s Price Performance

The stock has a 50 day moving average price of $310.10 and a 200-day moving average price of $300.11. The stock has a market capitalization of $223.08 billion, a P/E ratio of 27.39, a PEG ratio of 3.10 and a beta of 0.57.

McDonald’s (NYSE:MCD) last announced its quarterly earnings data on Thursday, May 1st. The fast-food giant reported $2.67 earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of $2.67. McDonald’s had a negative return on equity of 181.63% and a net margin of 31.73%. The firm had revenue of $5.96 billion for the quarter, compared to analysts’ expectations of $6.17 billion. During the same period last year, the firm earned $2.70 earnings per share. The company’s revenue for the quarter was down 3.5% compared to the same quarter last year. Research analysts predict that McDonald’s Co. will post 12.25 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Christopher J. Kempczinski sold 10,500 shares of the firm’s stock in a transaction dated Tuesday, February 11th. The stock was sold at an average price of $310.05, for a total value of $3,255,525.00. Following the sale, the chief executive officer now directly owns 32,756 shares of the company’s stock, valued at $10,155,997.80. This trade represents a 24.27% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Joseph M. Erlinger sold 939 shares of the firm’s stock in a transaction dated Wednesday, April 23rd. The stock was sold at an average price of $318.50, for a total value of $299,071.50. Following the completion of the sale, the insider now directly owns 12,100 shares in the company, valued at $3,853,850. The trade was a 7.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 28,136 shares of company stock valued at $8,676,247 over the last ninety days. 0.25% of the stock is owned by insiders.

Institutional Trading of McDonald’s

Several large investors have recently bought and sold shares of the company. Berger Financial Group Inc boosted its position in McDonald’s by 3.8% during the 1st quarter. Berger Financial Group Inc now owns 2,441 shares of the fast-food giant’s stock valued at $762,000 after acquiring an additional 90 shares in the last quarter. Pandora Wealth Inc. bought a new stake in McDonald’s during the 1st quarter valued at approximately $65,000. Sierra Summit Advisors LLC boosted its position in McDonald’s by 4.7% during the 1st quarter. Sierra Summit Advisors LLC now owns 5,405 shares of the fast-food giant’s stock valued at $1,688,000 after acquiring an additional 245 shares in the last quarter. Fiduciary Family Office LLC bought a new stake in McDonald’s during the 1st quarter valued at approximately $622,000. Finally, True North Advisors LLC boosted its position in McDonald’s by 3.6% during the 1st quarter. True North Advisors LLC now owns 1,184 shares of the fast-food giant’s stock valued at $370,000 after acquiring an additional 41 shares in the last quarter. 70.29% of the stock is owned by institutional investors.

McDonald’s Company 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.