KeyCorp Raises McDonald's Price Target to $340.00

McDonald's (NYSE:MCD - Get Free Report) saw its price target increased by KeyCorp from $335.00 to $340.00 in a research note released on Thursday. The brokerage has given the fast-food giant an "overweight" rating on its stock. KeyCorp's new price target suggests an upside potential of 8.49% from the stock's previous closing price.

McDonald's Value Proposition Compared to Competitors

McDonald's has been featured in multiple research reports recently. BMO Capital Markets also raised their price objective for the company from $335.00 to $340.00 while maintaining an "outperform" rating in a report published on a previous Tuesday. Similarly, Barclays has adjusted their price target from $347.00 to $350.00 and assigned an "overweight" rating on February 10th. Erste Group Bank recently upgraded McDonald's from a "hold" rating to a "strong-buy" status as of March 17th. On the other hand, Truist Financial reduced its price target from $342.00 to $340.00, and Loop Capital reaffirmed a "buy" rating with a target price of $342.00 in early January. In total, nine analysts have rated McDonald's with a hold rating, while sixteen analysts have given it a buy rating, and one has assigned a strong buy rating. MarketBeat.com reports that McDonald's has a consensus rating of "Moderate Buy" and an average price target of $323.61.

McDonald's Stock Performance Overview

On Thursday, the opening share price of McDonald's was $313.39. Over the past year, the stock has experienced a low of $243.53 and a high of $326.32. With a market capitalization of approximately $223.91 billion, McDonald's has a price-to-earnings (P/E) ratio of 27.51 and a P/E growth (P/E/G) ratio of 3.10, along with a beta of 0.71. The 50-day and 200-day simple moving averages for the stock stand at $300.34 and $297.89, respectively.

Recent Earnings and Financial Performance

McDonald's last reported its quarterly earnings on February 10th, where it posted earnings per share (EPS) of $2.83, matching analysts' expectations. The company reported a net margin of 31.73% and a negative return on equity of 181.63%. Research analysts predict that McDonald's will achieve an EPS of 12.25 for the current financial year.

Insider Trading Activities

In related insider news, Executive Vice President Tiffanie L. Boyd sold 1,000 shares of the company on February 27th for an average price of $309.27, leading to a total of $309,270. Following this transaction, Boyd owns 5,564 shares valued at approximately $1,720,778.28, reflecting a 15.23% decrease in her ownership. Additionally, insider Joseph M. Erlinger sold 300 shares on January 23rd at an average price of $280.75, totalizing $84,225. After this sale, he now holds 7,887 shares valued at about $2,214,275.25, which is a 3.66% reduction in his stake. In total, insiders have sold 32,405 shares worth $9,886,656 in the last quarter, while company insiders own 0.23% of the stock.

Institutional Investments in McDonald’s

Many hedge funds have made changes to their positions in McDonald's recently. Norges Bank established a new position accountable for $2.73 billion in the fourth quarter. Raymond James Financial also took a new position valued at around $703 million. Several other firms, including Castlekeep Investment Advisors and Northern Trust Corp, increased their stakes in McDonald's during the same period. Currently, institutional investors and hedge funds hold about 70.29% of the company’s stock.

About McDonald's Corporation

McDonald's Corporation is engaged in the operation and franchising of restaurants. Its business operations are divided into different segments: U.S., International Operated Markets, and International Developmental Licensed Markets.

McDonald's, Stocks, Analysis