Mcdonald’s Corp (NYSE:MCD) Sees Significant Decline in Short Interest

Mcdonald’s Corp (NYSE:MCD) saw a large drop in short interest in May. As of May 15th, there was short interest totalling 7,980,000 shares, a drop of 8.0% from the April 30th total of 8,670,000 shares. Currently, 1.1% of the shares of the company are sold short. Based on an average daily volume of 5,650,000 shares, the days-to-cover ratio is presently 1.4 days.

Several hedge funds have recently added to or reduced their stakes in the company. The Manufacturers Life Insurance Company raised its position in shares of Mcdonald’s by 3.2% during the first quarter. The Manufacturers Life Insurance Company now owns 849,137 shares of the fast-food giant’s stock worth $140,405,000 after acquiring an additional 26,380 shares during the last quarter. Samlyn Capital LLC bought a new stake in shares of Mcdonald’s during the first quarter worth $1,552,000. FDx Advisors Inc. raised its position in shares of Mcdonald’s by 4.6% during the first quarter. FDx Advisors Inc. now owns 24,320 shares of the fast-food giant’s stock worth $4,021,000 after acquiring an additional 1,066 shares during the last quarter. Integrated Investment Consultants LLC raised its position in shares of Mcdonald’s by 5.7% during the first quarter. Integrated Investment Consultants LLC now owns 2,885 shares of the fast-food giant’s stock worth $477,000 after acquiring an additional 155 shares during the last quarter. Finally, HighTower Advisors LLC raised its position in shares of Mcdonald’s by 3.4% during the first quarter. HighTower Advisors LLC now owns 821,664 shares of the fast-food giant’s stock worth $135,776,000 after acquiring an additional 27,357 shares during the last quarter. Institutional investors own 66.13% of the company’s stock.

MCD traded down $0.67 during trading on Friday, hitting $184.41. The company’s stock had a trading volume of 2,448,234 shares, compared to its average volume of 4,116,318. The firm’s 50 day moving average price is $179.19 and its two-hundred day moving average price is $192.40. Mcdonald’s has a 12 month low of $124.23 and a 12 month high of $221.93. The stock has a market capitalization of $137.62 billion, a price-to-earnings ratio of 24.17, a price-to-earnings-growth ratio of 4.59 and a beta of 0.67.

Mcdonald’s (NYSE:MCD) last released its earnings results on Thursday, April 30th. The fast-food giant reported $1.47 earnings per share for the quarter, missing analysts’ consensus estimates of $1.59 by ($0.12). The firm had revenue of $4.71 billion for the quarter, compared to the consensus estimate of $4.66 billion. Mcdonald’s had a negative return on equity of 70.25% and a net margin of 27.86%. The company’s revenue was down 6.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.78 EPS. As a group, analysts predict that Mcdonald’s will post 5.5 earnings per share for the current year.

The company also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Stockholders of record on Monday, June 1st will be given a dividend of $1.25 per share. This represents a $5.00 dividend on an annualized basis and a dividend yield of 2.71%. Mcdonald’s’s payout ratio is currently 63.78%.

Several analysts have recently weighed in on MCD shares. Royal Bank of Canada lifted their price objective on Mcdonald’s from $201.00 to $211.00 and gave the stock an “outperform” rating in a report on Friday, May 1st. Cowen lifted their price objective on Mcdonald’s from $180.00 to $190.00 and gave the stock an “outperform” rating in a report on Thursday, April 9th. Stifel Nicolaus decreased their price objective on Mcdonald’s from $180.00 to $175.00 and set a “hold” rating on the stock in a report on Friday, May 1st. Sanford C. Bernstein reissued a “buy” rating and set a $230.00 price objective on shares of Mcdonald’s in a report on Friday, May 1st. Finally, Jefferies Financial Group lifted their price objective on Mcdonald’s from $175.00 to $208.00 and gave the stock a “buy” rating in a report on Wednesday, April 22nd. Eight investment analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company’s stock. Mcdonald’s presently has a consensus rating of “Buy” and a consensus target price of $207.48.

Mcdonald’s Company Profile

McDonald's Corporation operates and franchises McDonald's restaurants in the United States and internationally. Its restaurants offer various food products, soft drinks, coffee, and other beverages, as well as breakfast menu. As of December 31, 2018, the company operated 37,855 restaurants, including 35,085 franchised restaurants comprising 21,685 franchised to conventional franchisees, 7,225 licensed to developmental licensees, and 6,175 licensed to foreign affiliates; and 2,770 company-operated restaurants.

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