McDonald’s (NYSE:MCD) Stock Price Expected to Rise, Citigroup Analyst Says

McDonald’s (NYSE:MCD) had its price objective upped by research analysts at Citigroup from $334.00 to $336.00 in a research report issued on Tuesday,Benzinga reports. The brokerage currently has a “buy” rating on the fast-food giant’s stock. Citigroup’s target price would suggest a potential upside of 14.61% from the company’s previous close.

A number of other research firms have also recently issued reports on MCD. Guggenheim cut McDonald’s from a “buy” rating to a “neutral” rating and cut their price objective for the stock from $290.00 to $285.00 in a report on Wednesday, October 23rd. Argus upgraded shares of McDonald’s from a “hold” rating to a “buy” rating in a research report on Tuesday, October 8th. UBS Group boosted their price objective on shares of McDonald’s from $305.00 to $345.00 and gave the stock a “buy” rating in a report on Wednesday, October 9th. Wedbush reaffirmed an “outperform” rating and set a $295.00 target price on shares of McDonald’s in a report on Wednesday, October 23rd. Finally, Robert W. Baird downgraded shares of McDonald’s from an “outperform” rating to a “neutral” rating and lowered their price target for the stock from $320.00 to $290.00 in a research note on Wednesday, October 23rd. Ten analysts have rated the stock with a hold rating and eighteen have assigned a buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $320.87.

McDonald’s Stock Up 2.7 %

McDonald’s stock opened at $293.16 on Tuesday. The business has a 50-day simple moving average of $291.07 and a 200 day simple moving average of $288.70. McDonald’s has a 52 week low of $243.53 and a 52 week high of $317.90. The stock has a market cap of $210.08 billion, a price-to-earnings ratio of 25.74, a PEG ratio of 3.66 and a beta of 0.73.

McDonald’s (NYSE:MCD) last issued its quarterly earnings results on Tuesday, October 29th. The fast-food giant reported $3.23 EPS for the quarter, topping analysts’ consensus estimates of $3.18 by $0.05. McDonald’s had a net margin of 31.79% and a negative return on equity of 175.42%. The firm had revenue of $6.87 billion for the quarter, compared to analyst estimates of $6.82 billion. During the same quarter in the prior year, the firm earned $3.19 EPS. The business’s revenue for the quarter was up 2.7% compared to the same quarter last year. On average, research analysts anticipate that McDonald’s will post 11.72 earnings per share for the current year.

Insider Transactions at McDonald’s

In related news, insider Joseph M. Erlinger sold 300 shares of the firm’s stock in a transaction on Thursday, January 23rd. The stock was sold at an average price of $280.75, for a total value of $84,225.00. Following the transaction, the insider now directly owns 7,887 shares of the company’s stock, valued at approximately $2,214,275.25. This trade represents a 3.66 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Desiree Ralls-Morrison sold 3,409 shares of the company’s stock in a transaction dated Monday, December 30th. The stock was sold at an average price of $290.15, for a total value of $989,121.35. Following the completion of the sale, the executive vice president now owns 9,675 shares of the company’s stock, valued at approximately $2,807,201.25. The trade was a 26.05 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 8,905 shares of company stock worth $2,592,327 over the last three months. 0.23% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On McDonald’s

Large investors have recently added to or reduced their stakes in the company. Legacy Investment Solutions LLC bought a new stake in McDonald’s during the third quarter valued at about $25,000. RPg Family Wealth Advisory LLC bought a new position in McDonald’s in the 3rd quarter worth approximately $31,000. Hara Capital LLC bought a new stake in shares of McDonald’s during the third quarter valued at approximately $44,000. Financial Life Planners bought a new stake in McDonald’s in the 4th quarter valued at $49,000. Finally, Peterson Financial Group Inc. purchased a new position in shares of McDonald’s during the third quarter valued at about $58,000. Hedge funds and other institutional investors own 70.29% of the company’s stock.

About McDonald’s

McDonald's Corporation operates and franchises restaurants under the McDonald's brand in the United States and internationally. It offers food and beverages, including hamburgers and cheeseburgers, various chicken sandwiches, fries, shakes, desserts, sundaes, cookies, pies, soft drinks, coffee, and other beverages; and full or limited breakfast, as well as sells various other products during limited-time promotions.