Hengehold Capital Management LLC has recently announced that during the fourth quarter of last year, it raised its stake in the popular fast-food chain, McDonald’s Co. (NYSE:MCD) by 4.4%, bringing its total shares owned to 12,741. This move shows confidence in the future of McDonald’s despite current global economic uncertainties.
McDonald’s is a company with a strong history and an impressive track record for continued growth and expansion. With franchises all over the world, their brand is well-known and loved by millions. The company also recently shared news of a quarterly dividend which was paid out to shareholders on March 15th. Shareholders of record on March 1st were rewarded with a $1.52 per share dividend, providing investors with an annualized dividend yield of 2.22%. Additionally, McDonald’s has been paying dividends regularly since 1976, further solidifying its reputation as a financially stable investment.
However, not all news surrounding the company has been positive recently. In February of this year, two high-level executives sold some of their shares. EVP Marion K. Gross sold 1,396 shares at an average price of $265.44 while CEO Christopher J. Kempczinski sold 3,850 at $267.69 each respectively adding up to about $1 million worth combined selling transaction. The insiders’ running away from the heavily-loved stock did raise some eyebrows among investors and analysts.
Despite this insider trading activity, market analysts remain bullish on McDonald’s due to its history of robust performance and financial stability as evidenced by Hengehold Capital Management LLC’s increased ownership percentage in the company during such uncertain times.
Moreover, HCM’s consolidated holdings amounting to $3,358k based on its most recent filing to Securities Exchange Commission show how much institutional investors rely upon and trust McDonald’s ability to deliver long term growth prospects even amidst global pandemics, economic recessions, and several other market uncertainties.
Overall, McDonald’s’s ability to weather such tumultuous times is a testament to the company’s operational efficiency and strength in the global economy. While insider selling may raise some questions for investors, Hengehold Capital Management LLC’s recent investment signifies solid future growth potential in the fast-food brand. As the world slowly adapts to changes amid COVID-19 pandemic distresses, one can only hope that McDonald’s continues its robust performance for many years to come.
Investors bullish on McDonald’s as it continues to report positive earnings and attract institutional attention
McDonald’s Corporation (NYSE:MCD) is an American fast-food giant that continues to gain momentum with investors. Covestor Ltd, NewEdge Advisors LLC, Mackenzie Financial Corp, Stevens Capital Management LP and Equitable Holdings Inc are among a number of hedge funds that have recently bought and sold shares in the company. Institutional investors and hedge funds currently own 66.86% of the company’s stock.
Recent research reports have also shown optimism for McDonald’s. Royal Bank of Canada decreased their price objective on McDonald’s from $296.00 to $283.00 but still gave it an “outperform” rating for the company in a research report on Friday, February 3rd. Meanwhile, Credit Suisse Group raised their price target on McDonald’s from $298.00 to $300.00 and gave the company an “outperform” rating in a report published earlier this year.
The news has continued to be positive for McDonald’s shareholders as the company recently declared a quarterly dividend payout ratio of 72.81%, representing a yield of 2.22%. The ex-dividend date was set at Tuesday, February 28th which would make newly acquired shares eligible for dividend payouts starting on Wednesday, March 1st.
It is clear that investors believe in what McDonald’s has to offer with its quarterly earnings performance reflecting this belief too. On Tuesday, January 31st, the fast-food giant reported $2.59 EPS for the quarter beating analysts’ consensus estimates of $2.46 by $0.13 with revenues reaching $5.93 billion compared to anticipated revenues of $5.75 billion according to consensus estimates.
McDonald’s’ stock opened today at $273.84 making it an attractive investment option given recent data-driven upturns in demand and high dividends paid out at regular intervals during each fiscal year.
Despite competition from other major brands within their sector, McDonald’s remains an industry leader and looks poised to remain a strong player in coming years thanks to its continued growth strategy and ability to attract not only customers, but investors as well.
