Citigroup Forecasts Strong Price Appreciation for McDonald’s (NYSE:MCD) Stock

McDonald’s (NYSE:MCD) had its target price boosted by Citigroup from $336.00 to $360.00 in a report published on Tuesday morning,Benzinga reports. They currently have a buy rating on the fast-food giant’s stock.

Other analysts also recently issued reports about the company. Bank of America increased their price target on McDonald’s from $321.00 to $324.00 and gave the stock a “neutral” rating in a report on Wednesday, October 30th. Wedbush reaffirmed an “outperform” rating and set a $295.00 target price on shares of McDonald’s in a research note on Wednesday, October 23rd. Piper Sandler cut their price target on McDonald’s from $297.00 to $290.00 and set a “neutral” rating on the stock in a report on Tuesday, February 4th. BMO Capital Markets lifted their price objective on shares of McDonald’s from $315.00 to $335.00 and gave the company an “outperform” rating in a research note on Wednesday, October 30th. Finally, Loop Capital reissued a “buy” rating and set a $342.00 target price on shares of McDonald’s in a research note on Friday, January 3rd. Ten analysts have rated the stock with a hold rating and sixteen have given a buy rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $323.61.

McDonald’s Price Performance

McDonald’s stock opened at $310.16 on Tuesday. The stock’s 50 day moving average is $291.02 and its 200 day moving average is $291.56. McDonald’s has a one year low of $243.53 and a one year high of $317.90. The firm has a market cap of $222.27 billion, a P/E ratio of 27.23, a P/E/G ratio of 4.08 and a beta of 0.74.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Monday, February 10th. The fast-food giant reported $2.83 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $2.83. McDonald’s had a net margin of 31.79% and a negative return on equity of 175.42%. Equities analysts anticipate that McDonald’s will post 11.73 earnings per share for the current fiscal year.

McDonald’s Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 17th. Shareholders of record on Monday, March 3rd will be paid a $1.77 dividend. The ex-dividend date is Monday, March 3rd. This represents a $7.08 annualized dividend and a yield of 2.28%. McDonald’s’s dividend payout ratio (DPR) is 62.16%.

Insider Transactions at McDonald’s

In other news, EVP Desiree Ralls-Morrison sold 3,409 shares of McDonald’s stock in a transaction on Monday, December 30th. The stock was sold at an average price of $290.15, for a total transaction of $989,121.35. Following the sale, the executive vice president now directly owns 9,675 shares in the company, valued at $2,807,201.25. The trade was a 26.05 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Joseph M. Erlinger sold 300 shares of the stock in a transaction dated Thursday, January 23rd. The shares were sold at an average price of $280.75, for a total transaction of $84,225.00. Following the transaction, the insider now owns 7,887 shares of the company’s stock, valued at approximately $2,214,275.25. The trade was a 3.66 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 7,406 shares of company stock worth $2,150,857 in the last 90 days. Insiders own 0.23% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in MCD. Legacy Investment Solutions LLC purchased a new position in McDonald’s in the third quarter valued at approximately $25,000. Atala Financial Inc bought a new stake in shares of McDonald’s in the fourth quarter valued at $26,000. Comprehensive Financial Planning Inc. PA purchased a new position in shares of McDonald’s during the 4th quarter valued at $27,000. Collier Financial purchased a new stake in McDonald’s in the 4th quarter worth about $29,000. Finally, Fairway Wealth LLC raised its stake in McDonald’s by 110.0% in the 4th quarter. Fairway Wealth LLC now owns 105 shares of the fast-food giant’s stock valued at $30,000 after acquiring an additional 55 shares during the period. 70.29% of the stock is currently owned by hedge funds and other institutional investors.

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, Russia, Spain, and the U.K.