TD Cowen Maintains Hold Rating on McDonald's Shares

In a recent research note published on Tuesday, TD Cowen reaffirmed its "hold" rating for McDonald's Corporation (NYSE:MCD), setting a price target of $300.00 per share. This target suggests a potential upside of 1.05% based on the current stock price.

McDonald's stock has seen varying opinions from different equities research analysts lately. For instance, Argus recently upgraded McDonald's rating from "hold" to "buy" in a report dated October 8. Meanwhile, on July 22, Stifel Nicolaus reduced their target price for the company from $285.00 to $265.00, maintaining a "hold" stance. On the other hand, JPMorgan Chase & Co. raised their price target from $270.00 to $290.00, assigning the stock an "overweight" rating on September 16. Similarly, Goldman Sachs increased their price target from $284.00 to $325.00, giving the stock a "neutral" rating on September 24. Truist Financial also revised their price target upwards, from $295.00 to $350.00, while rating it as a "buy" on October 15.

According to MarketBeat, the consensus among analysts shows that thirteen have rated the stock with a hold, while nineteen have assigned a buy rating, resulting in a consensus rating of "Moderate Buy" with an average target price of $318.22.

McDonald's Stock Performance and Market Metrics

On Tuesday, shares of McDonald's traded up by $0.08, reaching $296.87. The trading volume for the day was 5,992,010 shares, significantly higher than the average volume of 3,503,300. Currently, McDonald's has a market capitalization of $213.95 billion, a price-to-earnings (P/E) ratio of 25.20, and a P/E growth (P/E/G) ratio of 4.13. The company's beta is reported at 0.73, indicating lower volatility compared to the market. Its 50-day moving average price stands at $297.97 while the two-hundred-day moving average price is $275.16. Over the past year, McDonald's stock has experienced a 52-week low of $243.53 and a high of $317.90.

In its last earnings announcement made on July 29, McDonald's reported earnings per share (EPS) of $2.97, falling short of analyst expectations of $3.07 by $0.10. The company recorded revenue of $6.49 billion, which was below the expected $6.62 billion. Notably, McDonald's had a negative return on equity of 178.68% alongside a net margin of 32.25%. Revenue for the quarter showed a slight decline of 0.1% compared to the same quarter last year, with the previous year's EPS reported at $3.17. Analysts are anticipating that McDonald's will achieve an EPS of 11.73 for the current fiscal year.

Insider Transactions at McDonald's

In other developments, insider Joseph M. Erlinger sold 1,098 shares on August 23 at an average price of $288.70, totaling $316,992.60. Post-transaction, Erlinger holds 12,583 shares valued at approximately $3,632,712.10, indicating no change in ownership percentage. This sale was disclosed in a filing with the Securities and Exchange Commission. Another insider, EVP Marion K. Gross, also divested 1,498 shares on September 3 for an average price of $286.36, culminating in $428,967.28 in proceeds.

Institutional Investment Trends

Recently, several hedge funds have either augmented or diminished their stakes in McDonald's. Kings Path Partners LLC initiated a new position in the second quarter valued around $38,000. Similarly, Keener Financial Planning LLC increased its stakes by 32.3% in the first quarter, resulting in 176 shares valued at about $50,000. Furthermore, Opal Wealth Advisors LLC and Bbjs Financial Advisors LLC also acquired new positions in McDonald's, valued at $59,000 and $65,000 respectively. Macroview Investment Management LLC significantly boosted its holdings by 433.3%, owning 256 shares post-acquisition, valued at $65,000. Currently, institutional investors control 70.29% of the stock, indicating substantial institutional interest in McDonald's.

About McDonald's Corporation

McDonald's is a globally recognized corporation that operates and franchises a well-known chain of restaurants. The company offers a diverse menu, including hamburgers, cheeseburgers, chicken sandwiches, fries, shakes, and a variety of beverages, as well as breakfast options and limited-time promotional items.

McDonald's, Stocks, Rating