Kanawha Capital Management LLC Lowers Stock Holdings in McDonald’s Corporation $MCD

Kanawha Capital Management LLC trimmed its position in McDonald’s Corporation (NYSE:MCD) by 7.1% during the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 82,717 shares of the fast-food giant’s stock after selling 6,288 shares during the quarter. McDonald’s makes up approximately 1.8% of Kanawha Capital Management LLC’s portfolio, making the stock its 14th biggest holding. Kanawha Capital Management LLC’s holdings in McDonald’s were worth $24,167,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. HFM Investment Advisors LLC purchased a new stake in shares of McDonald’s in the first quarter worth about $26,000. Nova Wealth Management Inc. purchased a new stake in shares of McDonald’s in the first quarter worth about $26,000. GFG Capital LLC purchased a new stake in shares of McDonald’s in the second quarter worth about $29,000. Abound Financial LLC purchased a new stake in shares of McDonald’s in the first quarter worth about $30,000. Finally, Redmont Wealth Advisors LLC purchased a new stake in shares of McDonald’s in the first quarter worth about $31,000. 70.29% of the stock is owned by hedge funds and other institutional investors.

McDonald’s Price Performance

Shares of NYSE MCD opened at $308.02 on Friday. McDonald’s Corporation has a one year low of $276.53 and a one year high of $326.32. The firm’s 50 day simple moving average is $306.29 and its two-hundred day simple moving average is $305.54. The stock has a market capitalization of $219.80 billion, a P/E ratio of 26.39, a PEG ratio of 3.22 and a beta of 0.50.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Wednesday, August 6th. The fast-food giant reported $3.19 EPS for the quarter, beating analysts’ consensus estimates of $3.15 by $0.04. McDonald’s had a net margin of 32.21% and a negative return on equity of 225.52%. The business had revenue of $6.84 billion for the quarter, compared to analysts’ expectations of $6.68 billion. During the same period last year, the business earned $2.97 earnings per share. The business’s quarterly revenue was up 5.4% on a year-over-year basis. As a group, equities analysts expect that McDonald’s Corporation will post 12.25 earnings per share for the current fiscal year.

McDonald’s Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 16th. Shareholders of record on Tuesday, September 2nd were given a dividend of $1.77 per share. This represents a $7.08 dividend on an annualized basis and a yield of 2.3%. The ex-dividend date was Tuesday, September 2nd. McDonald’s’s dividend payout ratio (DPR) is presently 60.67%.

Insider Buying and Selling at McDonald’s

In other news, CMO Edith Morgan Flatley sold 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 2nd. The shares were sold at an average price of $315.00, for a total value of $315,000.00. Following the transaction, the chief marketing officer owned 6,858 shares in the company, valued at approximately $2,160,270. This trade represents a 12.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Desiree Ralls-Morrison sold 2,487 shares of the firm’s stock in a transaction that occurred on Wednesday, August 6th. The stock was sold at an average price of $310.00, for a total transaction of $770,970.00. Following the completion of the transaction, the executive vice president owned 8,754 shares in the company, valued at $2,713,740. This represents a 22.12% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 6,402 shares of company stock valued at $1,973,407 over the last ninety days. Insiders own 0.25% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently weighed in on MCD shares. Evercore ISI raised their target price on shares of McDonald’s from $350.00 to $360.00 and gave the company an “outperform” rating in a research note on Friday, August 8th. Wells Fargo & Company lowered their target price on shares of McDonald’s from $350.00 to $340.00 and set an “overweight” rating on the stock in a research note on Thursday. BMO Capital Markets raised their target price on shares of McDonald’s from $350.00 to $360.00 and gave the company an “outperform” rating in a research note on Thursday, September 4th. Bank of America lowered their target price on shares of McDonald’s from $327.00 to $322.00 and set a “neutral” rating on the stock in a research note on Friday, July 18th. Finally, Stifel Nicolaus raised their target price on shares of McDonald’s from $300.00 to $315.00 and gave the company a “hold” rating in a research note on Friday, August 22nd. Eleven research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $324.68.

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.