Insider Trade Overview: McDonald’s Corporation (MCD) Buys and Sells

On December 03, 2019, McDonald’s Corporation (NYSE:MCD) shares lost -1.06% or -2.06 points to close at $193.12 with a heavy trading volume of 3.745 million shares. It opened the trading session at $194.3, the shares rose to $195.035 and dropped to $192.35, the range by which the price of stock traded the whole day. The company now has a market cap of $147 billion and currently has 760.14 million outstanding shares. McDonald’s Corporation (MCD) stock has plunged -0.42 percent of market value in 21 trading days.

MCD stock’s trailing 3-year beta is 0.46, meaning there will be a lower rate of return, although posing a lower risk. The part of a firm’s profit given to each outstanding share of regular stock was $7.65 share in the trailing 52 weeks. The stock’s value surged 8.76 percent year to date (YTD) compared to a rise of 2.45 percent in 52 week’s period. The firm’s shares are still trading -12.98 percent below its 1-year high of $221.93 and 14.25 percent up from 52-week low of $169.04. The average consensus ranking on the company is 2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

McDonald’s Corporation (MCD) is most likely going to rise 14.6 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $255-month high price target. This represents a whopping 32.04 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $225, which means a return possibility of 16.51 percent in comparison with the closing price of the stock of $193.12 on December 03. The lowest price set for the stock is $193 — just above -0.06 percent from MCD share price now.

Past records have indicated that shares in McDonald’s Corporation rose on 20 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of MCD’s Q4 earnings on January 28. Analysts are predicting revenue to climb 2.6 percent to $5.3B in the financial fourth quarter, while EPS will soar by about -0.51 percent to $1.96 per share. In the last quarter, it earnings of $2.11 per share came better than the $1.76259, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $5.43B, missing the $5.47B analysts had expected. Earnings are seen to rise by 5.7 percent this year, 7.99 percent in the coming year and the trend continues by 5.05 percent every year in the next 5 years.

Let’s take a glimpse at some insider activity at McDonald’s Corporation (NYSE:MCD) and observe the pattern. The earliest insider trade happened on 11/14/2019. ROGERS JOHN W JR gathered a total of 1 thousand shares of the firm at average share price of $194.12. The total amount for the purchase was set at $194.12 thousand. On completing this exchange, the Director account balance was 88.6 thousand shares. The stock lost -0.52 percent from that insider purchase. On 11/07/2019, HERNANDEZ ENRIQUE JR, Non-Exec Chairman of the Board, did a purchase of 2.5 thousand shares at a price of $193.83 per share. This increased 484.58 thousand shares to the insider’s fortune and the stock experienced a -0.37 percent retreat in price since the news became public. This exchange saw 4.5 thousand shares get into the Non-Exec Chairman of the Board account.

On 11/06/2019, Director Mulligan John J recorded a purchase transaction valued at $251.5 thousand. The purchase at $193.46 a share has added 1.3 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed -0.18 percent decrease since the transaction reporting date. The company insider is left with 2.9 thousand shares remaining in the account. Kempczinski Christopher J, who works as President and CEO at the company, performed a purchase of 2.58 thousand shares in a transaction worth $500.03 thousand. The acquisition recorded on 11/06/2019 was priced at $193.81 per share. The stock price plunged -0.36 percent since the transaction. Kempczinski Christopher J currently holds a stake of 2.58 thousand in MCD stock which is worth $498.25 thousand after the insider buying.

The stock is lingering around the initial support level of $191.97. After this, the following support is at the zone of $190.82. Up until the time the MCD stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 42.68 on the daily chart, and this may be a cause for concern. In case the price goes below $190.82 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $194.65 level may cause a pull-back move approaching $196.19 mark.

McDonald’s Corporation (MCD) shares are trading at a P/E ratio of 25.3 times earnings posted in the trailing 12 months. The industry MCD deals with has an average P/E of 28.3. McDonald’s Corporation has a 52.5% gross profit margin, with its operating margin around 42%. Alongside this, the company’s net profit margin currently stands at 28.1%.