Market Analysts see McDonald’s Corporation [MCD] falling to $165. Time to buy?

McDonald’s Corporation [NYSE: MCD] traded at a high on 06/15/20, posting a 0.17 gain after which it closed the day’ session at $189.49. The results of the trading session contributed to over 4493589 shares changing hands. Over the past one week, the price volatility of McDonald’s Corporation stands at 2.68% while the volatility over the past one month is 2.17%.

The market cap for MCD stock reached $139.66 billion, with 744.80 million shares outstanding and 743.14 million shares in the current float. Compared to the average trading volume of 5.49M shares, MCD reached a trading volume of 4493589 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about McDonald’s Corporation [MCD]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for MCD shares is $203.29 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on MCD stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Stephens have made an estimate for McDonald’s Corporation shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on March 25, 2020. While these analysts kept the previous recommendation, Longbow dropped their target price from $230 to $197. The new note on the price target was released on March 20, 2020, representing the official price target for McDonald’s Corporation stock.

The Average True Range (ATR) for McDonald’s Corporation is set at 5.06, with the Price to Sales ratio for MCD stock in the period of the last 12 months amounting to 6.70. Price to Free Cash Flow for MCD in the course of the last twelve months was 84.09 with Quick ratio for the last quarter at 1.90.

How has MCD stock performed recently?

McDonald’s Corporation [MCD] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -6.49. With this latest performance, MCD shares gained by 8.03% in over the last four-week period, additionally sinking by -3.47% over the last 6 months – not to mention a drop of -7.70% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for MCD stock in for the last two-week period is set at 52.14, with the RSI for the last a single of trading hit 48.64, and the three-weeks RSI is set at 52.52 for McDonald’s Corporation [MCD]. The present Moving Average for the last 50 days of trading for this stock 183.73, while it was recorded at 192.30 for the last single week of trading, and 195.57 for the last 200 days.

McDonald’s Corporation [MCD]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and McDonald’s Corporation [MCD] shares currently have an operating margin of +41.82 and a Gross Margin at +52.74. McDonald’s Corporation’s Net Margin is presently recorded at +28.59.

Return on Total Capital for MCD is now 27.47, given the latest momentum, and Return on Invested Capital for the company is 18.98. Additionally, MCD Total Debt to Total Capital is recorded at 120.87, with Total Debt to Total Assets ending up at 100.10.

Reflecting on the efficiency of the workforce at the company, McDonald’s Corporation [MCD] managed to generate an average of $29,392 per employee. Receivables Turnover for the company is 9.03 with a Total Asset Turnover recorded at a value of 0.52.McDonald’s Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.90 and a Current Ratio set at 1.90.

Earnings analysis for McDonald’s Corporation [MCD]

With the latest financial reports released by the company, McDonald’s Corporation posted 2.05/share EPS, while the average EPS was predicted by analysts to be reported at 2.05/share. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for MCD. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for McDonald’s Corporation go to 3.36%.

Insider trade positions for McDonald’s Corporation [MCD]

There are presently around $96,459 million, or 69.40% of MCD stock, in the hands of institutional investors. The top three institutional holders of MCD stocks are: VANGUARD GROUP INC with ownership of 69,417,980, which is approximately 2.561% of the company’s market cap and around 0.12% of the total institutional ownership; BLACKROCK INC., holding 53,115,259 shares of the stock with an approximate value of $10.05 billion in MCD stocks shares; and STATE STREET CORP, currently with $7.39 billion in MCD stock with ownership of nearly -0.27% of the company’s market capitalization.

Positions in McDonald’s Corporation stocks held by institutional investors increased at the end of April and at the time of the April reporting period, where 1,033 institutional holders increased their position in McDonald’s Corporation [NYSE:MCD] by around 35,259,995 shares. Additionally, 1,104 investors decreased positions by around 28,890,519 shares, while 230 investors held positions by with 445,754,912 shares. The mentioned changes placed institutional holdings at 509,905,426 shares, according to the latest SEC report filing. MCD stock had 122 new institutional investments in for a total of 2,294,164 shares, while 184 institutional investors sold positions of 2,300,556 shares during the same period.

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