On September 17, 2023, it was reported that Foster Group Inc. has significantly increased its holdings in McDonald’s Co., a well-known fast-food giant. According to their recent Form 13F filing with the Securities & Exchange Commission, Foster Group Inc. now owns 27,804 shares of McDonald’s stock, representing a notable increase of 193.4% during the second quarter. This equates to an additional purchase of 18,326 shares over that period.
Taking into account the proportions within Foster Group Inc.’s portfolio, McDonald’s constitutes approximately 0.5% of their holdings, making it their 27th largest holding overall. The value of Foster Group Inc.’s stake in McDonald’s reached an impressive $8,297,000 at the end of the most recent quarter.
In terms of financial performance and according to McDonald’s latest quarterly earnings results released on July 27th, the company reported earnings per share (EPS) of $3.17 for that period. This surpassed analysts’ consensus estimates by $0.40, with expectations set at $2.77 EPS.
It is noteworthy that during this quarter, McDonald’s experienced a negative return on equity of 139.57% alongside a net margin of 33.06%. However, despite these figures and considering revenue generated during this periodamounting to $6.50 billionthe company exceeded consensus estimates again which were at $6.30 billion for the quarter.
Comparing year-over-year growth rates reveals that McDonald’s achieved a significant increase in quarterly revenue with a recorded growth rate of 13.6% when compared to the same quarter from the previous year.
Market analysts have recently assessed McDonald’s stock in various reports and provided valuable insights into its potential upside for investors. For instance, Barclays raised its price target on shares of McDonald’s from $330.00 to $345.00 and gave it an “overweight” rating in a report released on July 28th. Similar to Barclays, KeyCorp increased their price target on McDonald’s stock from $320.00 to $330.00, also assigning an “overweight” rating in a report issued on July 21st.
Moreover, Tigress Financial raised its price objective on shares of McDonald’s from $330.00 to $355.00 and gave it a “buy” rating in a recently published research report. Morgan Stanley also joined this bandwagon by increasing its price objective on the fast-food giant’s stock from $315.00 to $320.00 and assigning it an “overweight” rating in a research report released on July 17th.
Rounding out these reports is Stephens, which restated its “overweight” rating and set a price objective of $325.00 for McDonald’s shares in its research report dated July 27th.
Based on data compiled from Bloomberg.com, it can be observed that out of the analyses provided by various research firms, five have rated McDonald’s stock as “hold,” while twenty-four have assigned it a “buy” rating.
In conclusion, Foster Group Inc.’s recent increase in holdings indicates their confidence in McDonald’s as an investment opportunity. Furthermore, analysis conducted by multiple reputable firms suggests that the fast-food giant exhibits potential for growth, making it an appealing prospect for investors looking for moderate-to-high returns within their portfolios.
McDonald’s Attracts Attention of Investors and Analysts with Positive Outlook
McDonald’s, the fast-food giant, has attracted the attention of both institutional investors and analysts in recent months. Several institutional investors, including Osterweis Capital Management Inc., Aspire Private Capital LLC, Grey Fox Wealth Advisors LLC, Ridgewood Investments LLC, and Retirement Group LLC have added or reduced their stakes in the company. For example, Osterweis Capital Management Inc. purchased a new stake in McDonald’s during the fourth quarter last year valued at approximately $25,000, while Aspire Private Capital LLC acquired a new stake during the first quarter this year valued at about $26,562,950,000.
Additionally, Grey Fox Wealth Advisors LLC increased its holdings in McDonald’s by 102.0% during the first quarter. The company now owns 101 shares of McDonald’s stock valued at $28,000 after purchasing an additional 51 shares during the last quarter. Ridgewood Investments LLC also joined in and purchased a new stake worth around $32,000 during the first quarter. Finally, Retirement Group LLC followed suit and purchased a new stake worth approximately $37,000 during the fourth quarter last year. It is interesting to note that hedge funds and other institutional investors currently own 67.60% of McDonald’s stock.
As of Friday, September 17th (reference date), McDonald’s stock opened at $278.23. The company has a market capitalization of $202.76 billion with a P/E ratio of 25.60 and a P/E/G ratio of 2.75. Its beta stands at 0.64 indicating less volatility compared to the overall market trends.
Analysts have closely monitored McDonald’s performance recently and have provided several reports on it as well as revised price targets for its stock value upwardly across those reports over time:
– Barclays raised their price target from $330 to $345 on July 28th while giving it an “overweight” rating.
– KeyCorp also adjusted their price target from $320 to $330 on July 21st while assigning an “overweight” rating to the stock.
– Tigress Financial increased their price estimate from $330 to $355 and suggested a “buy” rating on Wednesday.
– Morgan Stanley upped its price objective from $315 to $320 and gave the stock an “overweight” rating on Monday, July 17th.
– Stephens maintained an “overweight” rating and reiterated its price target of $325 in its report on Thursday, July 27th.
According to Bloomberg.com’s data, five research analysts have rated the stock as a hold while twenty-four assigned it a buy rating. Considering these ratings and insights from various reports, the stock currently has a consensus rating of “Moderate Buy,” with a consensus target price standing at approximately $323.17.
Furthermore, McDonald’s recently announced that it will be paying out a quarterly dividend on Monday, September 18th. Shareholders of record as of Friday, September 1st will receive a dividend of $1.52 per share. The ex-dividend date for this payout is set at Thursday, August 31st. Based on the annualized dividend amount of $6.08 per share, McDonald’s offers investors a dividend yield of 2.19%. Presently, McDonald’s payout ratio stands at 55.93%.
In recent insider news, Joseph M. Erlinger sold 4,487 shares of McDonald’s stock in a transaction dated Friday, July 21st at an average price of $297.87 per share for a total transaction value of approximately $1,336,542.69. Following this transaction, Erlinger now directly owns 11,412 shares valued at around $3,399,292.44 in the company.
Marion K. Gross, an EVP at McDonald’s, also sold 3,000 shares of the company’s stock on Tuesday, August 8th at an average price of $289.52, resulting in a total value of $868,560.00. Following this sale, Gross holds 1,605 shares valued at approximately $464,679.60.
It is important to note that corporate insiders have collectively sold a total of 18,149 shares valued at $5,257,201 in the past three months. These insider transactions account for only 0.27% of the company’s stock ownership.
In conclusion, McDonald’s has attracted the attention of institutional investors and analysts alike with several institutions purchasing new stakes and others adjusting their holdings in recent quarters. The stock has experienced fluctuations over time but continues to maintain a strong market position. Analyst reports suggest positive outlooks with revised price targets reflecting an optimistic sentiment towards the brand’s future performance. McDonald’s dividend payout presents an additional incentive for shareholders. Additionally, notable insider trading activity has been observed within the company as well. Overall, these developments indicate ongoing investor interest and confidence in McDonald’s as a potential investment opportunity.
– Securities and Exchange Commission (SEC) filings