The stock of McDonald’s Corporation (NYSE:MCD) decreased by -$0.51 on Tuesday to finish at $288.30, down -0.18 percent. The last five days have seen an average of 1,938,080 shares of common stock traded. 29 times new highs were reached in the current year, with a gain of $24.77. The average number of shares traded over the last 20 days was 2,400,620, while the average volume over the last 50 days totaled 2,339,276.
MCD stock dropped -2.17% since last month. On 08/11/23, the company’s shares reached a one-month low of $286.76. The stock touched a high of $299.35 on 07/21/23, after rallying from a low of $230.58 in 52 weeks. The price of MCD stock has risen by 9.40% or $24.77 this year, reaching a new high 29 times. Still, the stock price is down -3.69% from the 52-week high.
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Insider Transactions
MCD stock investors should be aware that McDonald’s Corporation (MCD) stock had its last reported insider trading activity 8 days ago on Aug 08. On Aug 08, EVP-Chief Supply Chain Officer Gross Marion K. sold 3,000 shares at $289.52 each. This transaction resulted in the insider making $868,560. On Jul 21, Erlinger Joseph M. sold 4,487 shares at a price of US$297.87. After the transaction, the insider now owns 11,412 shares. President, McDonald’s USA Erlinger Joseph M. had earlier sold 4,487 shares on Jun 23 for $291.35 a share. The transaction was completed for $1,307,287.
Valuation Metrics
McDonald’s Corporation (MCD) has a trailing price-to-earnings (P/E) ratio of 26.54. Beta for the stock is 0.64. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 8.65, and the price-to-cash flow ratio of 31.53.
Company paid $1.52 per share in dividends, remained unchanged from $1.52 last year.
Financial Health
For the three months ended June 29, McDonald’s Corporation’s quick ratio was 1.30, while its current ratio was 1.30, indicating its ability to pay off its debt. As far as profitability goes, gross margin for the trailing twelve months is 57.50% percent. McDonald’s Corporation’s EBITDA margin for the year ended June 29 was 52.73%, whereas its operating margin stood at 45.40% for the same period. Based on annual data, it had gross profit of $13.21 billion and revenue of $23.18 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. MCD’s return on assets (ROA) during the last 12 months has been 15.90%. There was a 24.00% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was -137.00%.
Earnings Surprise
According to McDonald’s Corporation’s quarterly financial report for the quarter that ended June 29. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $6.5 billion, while revenues rose by 11.99% to $5.9 billion. It was predicted that McDonald’s Corporation’s quarterly earnings would be $3.17, but it ended up being $2.79, beating the consensus by 13.60%. EBITDA was $3.6 billion for the quarter. At the end of McDonald’s Corporation’s most recent quarter ended June 29, its liabilities totaled 55.44 billion, while its total debt was $48.56 billion. Equity owned by shareholders amounts to $728.76 million.
Technical Picture
Here’s a quick look at McDonald’s Corporation’s (MCD) price momentum from a technical perspective. As of 15 August, the RSI 9-day stood at 41.24%, suggesting the stock is Neutral, with a 12.28% historical volatility rate.
The stochastic %K and %D were 14.96% and 13.10% respectively, while the average true range (ATR) was 3.18. Based on the 14-day stochastic reading of 12.69%, the RSI (14) reading is 43.12%. On the 9-day MACD Oscillator, the stock is at -0.38, and the 14-day reading is at -1.69.
Analyst Ratings
In a note to investors, KeyBanc Capital Markets maintained its an Overweight rating on McDonald’s Corporation (NYSE: MCD). However, the firm raised their price target to $330, indicating a possible increase of 9.91% in the stock price. Analysts have assigned McDonald’s Corporation (MCD) an Overweight rating. MCD is a stock that is recommended for selling by 0 brokerage firms, while 10 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 4 rates it overweight and 21 others recommend it as a buy.
What is MCD’s price target for the next 12 months?
The current consensus forecast for the stock is between $300.00 and $383.00, with a median target price of $330.00. In analyzing these forecasts, the average price target given by analysts for McDonald’s Corporation (MCD) is $330.63.
