Bailard Inc. has increased its investment in McDonald’s Corporation (NYSE: MCD) by 1.3% during the second quarter of 2024, as reported in its latest Form 13F filing with the Securities and Exchange Commission (SEC). The firm now holds 37,549 shares of the fast-food giant, valued at approximately $10,971,000 following the acquisition of an additional 488 shares during this period.
Several institutional investors and hedge funds have also engaged in trading McDonald’s shares recently. Notably, Geode Capital Management LLC raised its stake by 1.7%, now owning 16,828,420 shares worth about $4.9 billion after acquiring an additional 276,065 shares. Meanwhile, ABC Arbitrage SA initiated a new position in McDonald’s valued at around $2,046,000. Other firms, such as Accredited Investors Inc. and Bouchey Financial Group Ltd, also expanded their holdings, reflecting a growing institutional interest in the company.
As of now, 70.29% of McDonald’s stock is owned by institutional investors and hedge funds, underscoring the confidence in the brand’s financial stability and growth potential.
Stock Performance and Dividend Increase
On Wednesday, McDonald’s shares opened at $306.48. The company’s 50-day simple moving average stands at $303.91, and its 200-day simple moving average is $304.75. Over the past year, shares have fluctuated between a low of $276.53 and a high of $326.32. McDonald’s has a market capitalization of $218.26 billion and a price-to-earnings (P/E) ratio of 26.26.
In addition to strong share performance, McDonald’s recently announced an increase in its quarterly dividend, which will be paid on December 15, 2024. Shareholders of record on December 1 will receive a dividend of $1.86 per share, up from the previous quarterly dividend of $1.77. This change represents an annualized dividend of $7.44 and a dividend yield of 2.4%. The company’s current dividend payout ratio is 63.48%.
Insider Activity and Analyst Ratings
Recent insider trading reveals significant activity as well. Manuel Jm Steijaert, Executive Vice President, sold 13,134 shares on November 5 at an average price of $300.42, resulting in a total transaction value of approximately $3.95 million. After this sale, Steijaert’s remaining shares are valued at about $1.38 million, marking a 74.04% decrease in his position.
Similarly, Edith Morgan Flatley, Chief Marketing Officer, sold 1,000 shares on September 2 at an average price of $315.00, totaling $315,000. Following this transaction, she holds 6,858 shares worth approximately $2.16 million. In total, insiders have sold 15,134 shares of McDonald’s stock over the past three months, valued at around $4.57 million.
Analysts have maintained a positive outlook on McDonald’s stock, with various research firms adjusting their target prices. For instance, Evercore ISI raised its price target from $350.00 to $360.00, while Wells Fargo & Company increased its target from $340.00 to $345.00. Overall, eleven analysts rate the stock as a Buy, fifteen as Hold, and two as Sell, leading to an average target price of $323.91 according to data from MarketBeat.
As McDonald’s continues to navigate the fast-food landscape, the recent activities by institutional investors and positive analyst sentiment reflect a robust confidence in the company’s ongoing growth and stability.
