Geode Capital Management LLC has increased its stake in McDonald’s Corporation by 1.7%, now holding approximately $4.90 billion in shares as of the second quarter of 2023. According to its recent filing with the Securities and Exchange Commission (SEC), the institutional investor owns 16,828,420 shares of the fast-food giant, having acquired an additional 276,065 shares during the quarter. This acquisition represents about 2.35% of McDonald’s total shares.
Several other hedge funds have also adjusted their positions in McDonald’s. Nova Wealth Management Inc. and HFM Investment Advisors LLC each entered new positions in the first quarter, valued at approximately $26,000. Meanwhile, Decker Retirement Planning Inc. increased its holdings by 142.9%, now owning 85 shares worth about $25,000 after acquiring an additional 50 shares. Other firms, such as Legacy Investment Solutions LLC and GFG Capital LLC, also made new investments in the second quarter, each worth around $25,000 and $29,000 respectively. Overall, hedge funds and institutional investors hold 70.29% of McDonald’s stock.
Stock Performance and Dividends
McDonald’s stock opened at $306.48 on Wednesday. The company has experienced a fifty-two week low of $276.53 and a high of $326.32. The current fifty-day moving average price stands at $303.91, while the two-hundred day moving average price is $304.75. With a market capitalization of $218.26 billion, McDonald’s has a price-to-earnings ratio of 26.26 and a beta of 0.50.
Recently, McDonald’s announced an increase in its quarterly dividend, set to be paid on December 15, 2023. Shareholders on record as of December 1, 2023 will receive a dividend of $1.86 per share, amounting to an annualized dividend of $7.44 and a yield of 2.4%. This marks an increase from the previous quarterly dividend of $1.77. The company’s current dividend payout ratio is 63.48%.
Insider Activity and Analyst Ratings
In related news, Edith Morgan Flatley, Chief Marketing Officer, sold 1,000 shares on September 2, 2023, at an average price of $315.00, totaling $315,000. Following this transaction, she holds 6,858 shares, valued at approximately $2.16 million, indicating a 12.73% decrease in her stake. Additionally, Manuel Jm Steijaert, Executive Vice President, sold 13,134 shares on November 5, 2023, at an average price of $300.42, worth $3.95 million. After this sale, he directly owns 4,606 shares, valued at around $1.38 million. In total, company insiders sold 15,134 shares valued at $4.57 million over the last three months, with insiders owning 0.25% of the stock.
Several equities analysts have provided insights into McDonald’s stock. BMO Capital Markets affirmed an “outperform” rating, while Citigroup lowered its price target from $381.00 to $375.00 with a “buy” rating. Morgan Stanley set a price objective of $335.00, and Weiss Ratings reaffirmed a “buy (b-)” rating. Stifel Nicolaus also raised its target price from $300.00 to $315.00 with a “hold” rating. Currently, eleven analysts have rated the stock as a Buy, fifteen as Hold, and two as Sell, leading to an average rating of “Hold” with a consensus target price of $323.91, according to data from MarketBeat.
As McDonald’s continues to navigate the competitive landscape of the fast-food industry, its recent performance and investment activities highlight the confidence from institutional investors and analysts alike.
