Jensen Investment Management Inc. Lowers Stake in McDonald’s Co. (NYSE:MCD)

Jensen Investment Management Inc. lessened its holdings in McDonald’s Co. (NYSE:MCD) by 1.3% in the 4th quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The firm owned 609,109 shares of the fast-food giant’s stock after selling 8,073 shares during the period. McDonald’s makes up approximately 1.6% of Jensen Investment Management Inc.’s portfolio, making the stock its 24th largest position. Jensen Investment Management Inc.’s holdings in McDonald’s were worth $176,575,000 as of its most recent SEC filing.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in MCD. Legacy Investment Solutions LLC purchased a new position in McDonald’s in the 3rd quarter valued at approximately $25,000. Atala Financial Inc purchased a new position in McDonald’s in the 4th quarter valued at approximately $26,000. Comprehensive Financial Planning Inc. PA purchased a new position in McDonald’s in the 4th quarter valued at approximately $27,000. Collier Financial purchased a new position in McDonald’s in the 4th quarter valued at approximately $29,000. Finally, Fairway Wealth LLC boosted its position 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 buying an additional 55 shares during the period. Hedge funds and other institutional investors own 70.29% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts have commented on the stock. Citigroup raised their price target on shares of McDonald’s from $336.00 to $360.00 and gave the company a “buy” rating in a research report on Tuesday, February 11th. Loop Capital restated a “buy” rating and issued a $342.00 price objective on shares of McDonald’s in a report on Friday, January 3rd. Wedbush raised their price objective on shares of McDonald’s from $320.00 to $330.00 and gave the company an “outperform” rating in a report on Tuesday, February 11th. Morgan Stanley raised their price objective on shares of McDonald’s from $336.00 to $340.00 and gave the company an “overweight” rating in a report on Tuesday, February 11th. Finally, BMO Capital Markets raised their price objective on shares of McDonald’s from $335.00 to $340.00 and gave the company an “outperform” rating in a report on Tuesday, February 11th. Ten investment analysts have rated the stock with a hold rating and sixteen have assigned a buy rating to the company. According to MarketBeat, McDonald’s has an average rating of “Moderate Buy” and an average target price of $323.61.

McDonald’s Stock Performance

NYSE MCD opened at $300.00 on Monday. The firm has a market cap of $214.34 billion, a PE ratio of 26.34, a P/E/G ratio of 3.10 and a beta of 0.71. McDonald’s Co. has a one year low of $243.53 and a one year high of $326.32. The firm’s fifty day moving average is $296.96 and its two-hundred day moving average is $296.91.

McDonald’s (NYSE:MCD) last posted its quarterly earnings data on Monday, February 10th. The fast-food giant reported $2.83 EPS for the quarter, meeting analysts’ consensus estimates of $2.83. McDonald’s had a net margin of 31.73% and a negative return on equity of 181.63%. Research analysts predict that McDonald’s Co. will post 12.25 earnings per share for the current year.

McDonald’s Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Monday, March 17th. Stockholders of record on Monday, March 3rd will be issued a $1.77 dividend. This represents a $7.08 annualized dividend and a dividend yield of 2.36%. The ex-dividend date is Monday, March 3rd. McDonald’s’s payout ratio is 62.16%.

Insider Activity

In other news, insider Joseph M. Erlinger sold 1,099 shares of McDonald’s stock in a transaction dated Monday, December 23rd. The shares were sold at an average price of $291.10, for a total value of $319,918.90. Following the sale, the insider now owns 8,187 shares of the company’s stock, valued at $2,383,235.70. The trade was a 11.84 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, EVP Tiffanie L. Boyd sold 1,000 shares of McDonald’s stock in a transaction dated Thursday, February 27th. The shares were sold at an average price of $309.27, for a total transaction of $309,270.00. Following the completion of the sale, the executive vice president now directly owns 5,564 shares in the company, valued at approximately $1,720,778.28. The trade was a 15.23 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 33,504 shares of company stock valued at $10,206,575 over the last quarter. Corporate insiders own 0.23% of the company’s stock.

McDonald’s 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.