Novak & Powell Financial Services Inc. Grows Stake in McDonald’s Co. (NYSE:MCD)

Novak & Powell Financial Services Inc. boosted its stake in McDonald’s Co. (NYSE:MCD) by 9.4% during the fourth quarter, HoldingsChannel reports. The institutional investor owned 1,872 shares of the fast-food giant’s stock after buying an additional 161 shares during the quarter. Novak & Powell Financial Services Inc.’s holdings in McDonald’s were worth $593,000 at the end of the most recent reporting period.

Other institutional investors also recently bought and sold shares of the company. Northeast Financial Consultants Inc boosted its holdings in shares of McDonald’s by 0.5% during the fourth quarter. Northeast Financial Consultants Inc now owns 7,486 shares of the fast-food giant’s stock worth $2,170,000 after purchasing an additional 34 shares during the last quarter. Pettee Investors Inc. lifted its position in McDonald’s by 0.7% during the fourth quarter. Pettee Investors Inc. now owns 5,401 shares of the fast-food giant’s stock worth $1,566,000 after buying an additional 35 shares during the period. Covestor Ltd boosted its stake in McDonald’s by 4.1% in the 4th quarter. Covestor Ltd now owns 899 shares of the fast-food giant’s stock worth $261,000 after buying an additional 35 shares during the last quarter. Independent Wealth Network Inc. grew its holdings in McDonald’s by 5.1% in the 4th quarter. Independent Wealth Network Inc. now owns 736 shares of the fast-food giant’s stock valued at $213,000 after buying an additional 36 shares during the period. Finally, Blue Barn Wealth LLC grew its holdings in McDonald’s by 4.3% in the 4th quarter. Blue Barn Wealth LLC now owns 871 shares of the fast-food giant’s stock valued at $252,000 after buying an additional 36 shares during the period. 70.29% of the stock is currently owned by institutional investors and hedge funds.

McDonald’s Price Performance

McDonald’s stock opened at $319.63 on Wednesday. McDonald’s Co. has a 12-month low of $243.53 and a 12-month high of $326.32. The company has a market capitalization of $228.55 billion, a price-to-earnings ratio of 28.06, a price-to-earnings-growth ratio of 3.10 and a beta of 0.57. The firm’s fifty day moving average price is $310.92 and its 200 day moving average price is $301.07.

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

McDonald’s Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 16th. Shareholders of record on Monday, June 2nd will be given a $1.77 dividend. This represents a $7.08 dividend on an annualized basis and a dividend yield of 2.22%. McDonald’s’s payout ratio is 62.49%.

Wall Street Analysts Forecast Growth

Several research firms recently issued reports on MCD. Morgan Stanley decreased their target price on shares of McDonald’s from $340.00 to $335.00 and set an “overweight” rating on the stock in a research report on Monday, March 17th. JPMorgan Chase & Co. lifted their price target on shares of McDonald’s from $280.00 to $300.00 and gave the company an “overweight” rating in a report on Tuesday, February 11th. Robert W. Baird upped their price objective on McDonald’s from $300.00 to $315.00 and gave the stock a “neutral” rating in a report on Friday, May 2nd. KeyCorp lifted their target price on McDonald’s from $335.00 to $340.00 and gave the company an “overweight” rating in a report on Thursday, March 27th. Finally, Barclays boosted their price target on McDonald’s from $347.00 to $355.00 and gave the company an “overweight” rating in a research report on Friday, May 2nd. Eleven research analysts have rated the stock with a hold rating, sixteen have given a buy rating and one has given a strong buy rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $325.91.

Insider Activity

In other McDonald’s news, insider Joseph M. Erlinger sold 939 shares of McDonald’s stock in a transaction on Wednesday, April 23rd. The shares were sold at an average price of $318.50, for a total value of $299,071.50. Following the completion of the transaction, the insider now owns 12,100 shares of the company’s stock, valued at $3,853,850. The trade was a 7.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, EVP Marion K. Gross sold 1,099 shares of McDonald’s stock in a transaction dated Friday, February 21st. The shares were sold at an average price of $304.60, for a total transaction of $334,755.40. Following the completion of the transaction, the executive vice president now directly owns 1,560 shares of the company’s stock, valued at $475,176. This trade represents a 41.33% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 14,436 shares of company stock worth $4,458,290. 0.25% of the stock is currently owned by insiders.

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.