McDonald's Maintains 'Overweight' Rating from Stephens with a Target Price of $320

Investment firm Stephens has reaffirmed its 'overweight' rating on McDonald's Corporation (NYSE:MCD) shares, signaling confidence in the fast-food company's stock performance. The brokerage maintains a price target of $320.00.

Analyst Consensus on McDonald's

Several other research analysts have also recently reviewed McDonald's stock. HSBC began its coverage of McDonald's shares on December 20th, assigning a 'buy' rating and a price target of $317.00. On February 1st, StockNews.com upgraded their rating from 'hold' to 'buy'. Meanwhile, Stifel Nicolaus increased their price target from $285.00 to $322.00, maintaining a 'hold' rating, while KeyCorp and Morgan Stanley adjusted their target prices to $310.00 and $315.00, respectively, and kept their overweight ratings. In total, 5 analysts recommend holding the stock and 24 endorse buying it, with an overall moderate buy consensus and an average target price of $318.43, as shown on MarketBeat.com.

McDonald's Financial Highlights

McDonald's opened trading at $285.97 on Monday, with a market capitalization standing strong at $207.43 billion, a P/E ratio of 25.17, and a beta of 0.73. It marked a 12-month peak at $302.39 and bottomed at $245.73 over the same period. The company holds a 50-day moving average price of $291.87, while the 200-day moving average is $280.20.

For the recent financial quarter, McDonald's announced earnings per share (EPS) of $2.95, surpassing the consensus estimate of $2.83. Quarterly revenue hit $6.41 billion, closely aligned with the $6.45 billion forecast. Year-over-year, revenue showed an 8.1% increase. The company enjoyed a substantial 33.31% net margin and a notable negative return on equity of 157.19%. Looking ahead, analysts anticipate McDonald's will post an EPS of 11.8 for the current fiscal year.

Insider Transactions

Insider Joseph M. Erlinger executed multiple stock sales lately, with significant transactions occurring on November 22nd, December 22nd, and a disclosed sale fetching $1,332,278.10. Post these sales, Erlinger continues to hold 8,187 shares of the McDonald's stock, valued at approximately $2,379,960.90. Overall, insiders own a small fraction of the company's shares.

Institutional Involvement

Institutional investors have seen adjustments in their stakes of McDonald’s shares. Notably, Horizon Bancorp Inc. IN significantly elevated its shareholdings by 160.0%. Other entities like Blue Bell Private Wealth Management LLC and Retirement Group LLC also made new purchases or increased their investments in the company during the recent quarters. Institutions currently hold 67.60% of McDonald's stock.

About McDonald's

McDonald's Corporation operates and franchises its global chain of fast-food restaurants, offering various food items, including burgers, chicken, breakfast foods, and drinks. Known for its consistent menu and quick service, McDonald's focuses on providing a standardized dining experience worldwide.

McDonald's, Stock, Overweight