Notable Mover: Is McDonald’s Corporation a Sell? The Stock Declines Again

Notable Mover: Is McDonald's Corporation a Sell? The Stock Declines Again

The stock of McDonald’s Corporation (NYSE:MCD) is a huge mover today! About 3.18 million shares traded hands. McDonald’s Corporation (NYSE:MCD) has declined 5.05% since March 11, 2016 and is downtrending. It has underperformed by 10.51% the S&P500.
The move comes after 8 months negative chart setup for the $98.28 billion company. It was reported on Oct, 14 by Barchart.com. We have $105.31 PT which if reached, will make NYSE:MCD worth $7.86 billion less.

Analysts await McDonald’s Corporation (NYSE:MCD) to report earnings on October, 27. They expect $1.48 earnings per share, up 5.71% or $0.08 from last year’s $1.4 per share. MCD’s profit will be $1.27B for 19.34 P/E if the $1.48 EPS becomes a reality. After $1.45 actual earnings per share reported by McDonald’s Corporation for the previous quarter, Wall Street now forecasts 2.07% EPS growth.

McDonald’s Corporation (NYSE:MCD) Ratings Coverage

Out of 23 analysts covering McDonald’s Corporation (NYSE:MCD), 14 rate it a “Buy”, 1 “Sell”, while 8 “Hold”. This means 61% are positive. McDonald’s Corporation has been the topic of 52 analyst reports since September 29, 2015 according to StockzIntelligence Inc. The company was maintained on Friday, October 23 by Barclays Capital. The stock of McDonald’s Corporation (NYSE:MCD) has “Buy” rating given on Tuesday, January 19 by BTIG Research. UBS maintained McDonald’s Corporation (NYSE:MCD) rating on Monday, March 7. UBS has “Buy” rating and $131 price target. As per Thursday, October 8, the company rating was initiated by Suntrust Robinson. The company was maintained on Friday, October 23 by UBS. Barclays Capital maintained it with “Overweight” rating and $136 target price in Tuesday, January 26 report. The rating was upgraded by Argus Research on Wednesday, January 27 to “Buy”. Credit Suisse maintained McDonald’s Corporation (NYSE:MCD) on Tuesday, January 26 with “Outperform” rating. The rating was maintained by RBC Capital Markets on Friday, October 23 with “Outperform”. The firm has “Outperform” rating given on Tuesday, August 30 by Robert W. Baird.

According to Zacks Investment Research, “McDonald’s Corporation develops, operates, franchises and services a worldwide system of restaurants that prepare, assemble, package and sell a limited menu of value-priced foods. The company operates primarily in the quick-service hamburger restaurant business. All restaurants are operated by the company or, under the terms of franchise arrangements, by franchisees who are independent third parties, or by affiliates operating under joint-venture agreements between the company and local business people.”

Insitutional Activity: The institutional sentiment decreased to 0.72 in 2016 Q2. Its down 0.04, from 0.76 in 2016Q1. The ratio dived, as 105 funds sold all McDonald’s Corporation shares owned while 619 reduced positions. 92 funds bought stakes while 432 increased positions. They now own 575.61 million shares or 9.50% less from 636.04 million shares in 2016Q1.
Parametric Risk Advsr Ltd accumulated 20,105 shares or 0.16% of the stock. Richard Bernstein Advsr Llc accumulated 0.55% or 48,266 shares. Pine River Capital Management Lp reported 10,719 shares or 0.02% of all its holdings. Chevy Chase Tru Holdg Inc accumulated 871,669 shares or 0.58% of the stock. Prospector Prtn Llc accumulated 45,600 shares or 0.93% of the stock. Moreover, Willingdon Wealth Mgmt has 1.71% invested in McDonald’s Corporation (NYSE:MCD) for 27,724 shares. Nomura Asset Management, a Japan-based fund reported 146,838 shares. Stephens Ar accumulated 0.72% or 133,927 shares. Exxonmobil Investment Management Incorporated Tx owns 227,234 shares or 0.58% of their US portfolio. Boyar Asset holds 0.89% of its portfolio in McDonald’s Corporation (NYSE:MCD) for 9,271 shares. Oz Management Lp holds 1.07% of its portfolio in McDonald’s Corporation (NYSE:MCD) for 1.55M shares. Benedict Advsrs holds 34,628 shares or 2.44% of its portfolio. Savant Cap Ltd Liability Corporation last reported 16,054 shares in the company. Walter & Keenan Fin Consulting Company Mi Adv has invested 0.31% of its portfolio in McDonald’s Corporation (NYSE:MCD). Blue holds 0.7% of its portfolio in McDonald’s Corporation (NYSE:MCD) for 7,043 shares.

Insider Transactions: Since April 25, 2016, the stock had 0 insider purchases, and 3 selling transactions for $10.02 million net activity. Shares for $1.63M were sold by OZAN KEVIN M on Monday, April 25. 70,000 shares were sold by MCKENNA ANDREW J, worth $8.28M. 845 shares were sold by Mullens Brian, worth $108,946 on Tuesday, May 3.

More recent McDonald’s Corporation (NYSE:MCD) news were published by: Usnews.com which released: “McDonald’s Corporation Shelves Ronald McDonald Amid Clown Sightings (MCD)” on October 11, 2016. Also Fool.com published the news titled: “McDonald’s Corporation Could Have a Whole New Restaurant Concept in the Works” on September 21, 2016. Nasdaq.com‘s news article titled: “McDonald’s Corporation Hit With Sexual Harassment Claims Across U.S.” with publication date: October 05, 2016 was also an interesting one.

MCD Company Profile

McDonald’s Corporation (McDonald’s), incorporated on December 21, 1964, operates and franchises McDonald’s restaurants. The Company’s restaurants serve a locally-relevant menu of quality food and drinks sold at various price points in over 100 countries. The Company’s divisions include U.S., International Lead Markets, High Growth Markets and Foundational Markets and Corporate. Of the approximately 36,525 restaurants in over 120 countries approximately 30,080 are franchised and over 6,444 are operated by the Company. McDonald’s franchised restaurants are owned and operated under various structures, including conventional franchise, developmental license or affiliate. The Firm is primarily a franchisor, with over 80% of McDonald’s restaurants owned and operated by independent franchisees. Under a conventional franchise arrangement, the Company owns the land and building or secures a long-term lease for the restaurant location and the franchisee pays for equipment, signs, seating and decor. The Firm uses the developmental license ownership structure in over 70 countries with a total of approximately 5,500 restaurants.

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