McDonald’s Corporation [NYSE: MCD] traded at a low on 01/12/22, posting a -0.46 loss after which it closed the day’ session at $260.92. The company report on November 29, 2021 that BetterInvesting™ Magazine Update on McDonald’s and BorgWarner.
The Editorial Advisory and Securities Review Committee of BetterInvesting Magazine today announced McDonald’s Corporation (NYSE: MCD) as its “Stock to Study” and BorgWarner, Inc. (NYSE: BWA) as its “Undervalued Stock” in the January 2022 issue for investors’ informational and educational use.
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“While it is human nature to focus on today, perhaps even more so in these pandemic times, investing success is best accomplished by focusing on the long-term. This long-term mindset championed by the National Association of Investors, celebrating its 70th anniversary this month, coupled with logical investing principles has stood the test of time. Now more than ever, it is imperative that individuals take the time to conduct thorough study, whether with the BetterInvesting Stock Selection Guide® or another tool, to evaluate both their current portfolio as well as future investments,” said Ken Zendel, CEO of the National Association of Investors (NAIC), the parent organization of BetterInvesting.
The results of the trading session contributed to over 3039209 shares changing hands. Over the past one week, the price volatility of McDonald’s Corporation stands at 1.38% while the volatility over the past one month is 1.13%.
The market cap for MCD stock reached $196.89 billion, with 747.10 million shares outstanding and 746.90 million shares in the current float. Compared to the average trading volume of 2.70M shares, MCD reached a trading volume of 3039209 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 $279.44 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.
Piper Sandler have made an estimate for McDonald’s Corporation shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on January 03, 2022. While these analysts kept the previous recommendation, Argus raised their target price from $275 to $300. The new note on the price target was released on December 30, 2021, representing the official price target for McDonald’s Corporation stock. Previously, the target price had yet another raise from $271 to $314, while Tigress Financial kept a Buy rating on MCD stock.
The Average True Range (ATR) for McDonald’s Corporation is set at 3.51, with the Price to Sales ratio for MCD stock in the period of the last 12 months amounting to 8.74. Price to Free Cash Flow for MCD in the course of the last twelve months was 70.30 with Quick ratio for the last quarter at 1.30.
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 -2.35. With this latest performance, MCD shares dropped by -0.82% in over the last four-week period, additionally plugging by 10.15% over the last 6 months – not to mention a rise of 23.02% 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 44.79, with the RSI for the last a single of trading hit 35.34, and the three-weeks RSI is set at 49.85 for McDonald’s Corporation [MCD]. The present Moving Average for the last 50 days of trading for this stock 258.60, while it was recorded at 264.84 for the last single week of trading, and 242.24 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 +37.29 and a Gross Margin at +50.60. McDonald’s Corporation’s Net Margin is presently recorded at +24.63.
Return on Total Capital for MCD is now 17.26, given the latest momentum, and Return on Invested Capital for the company is 11.92. Additionally, MCD Total Debt to Total Capital is recorded at 117.93, with Total Debt to Total Assets ending up at 97.79.
Reflecting on the efficiency of the workforce at the company, McDonald’s Corporation [MCD] managed to generate an average of $23,653 per employee. Receivables Turnover for the company is 8.86 with a Total Asset Turnover recorded at a value of 0.38.McDonald’s Corporation’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.30 and a Current Ratio set at 1.30.
Earnings analysis for McDonald’s Corporation [MCD]
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 21.61%.
Insider trade positions for McDonald’s Corporation [MCD]
There are presently around $130,521 million, or 69.20% of MCD stock, in the hands of institutional investors. The top three institutional holders of MCD stocks are: VANGUARD GROUP INC with ownership of 65,417,539, which is approximately 1.317% of the company’s market cap and around 0.05% of the total institutional ownership; BLACKROCK INC., holding 50,623,997 shares of the stock with an approximate value of $13.21 billion in MCD stocks shares; and STATE STREET CORP, currently with $9.38 billion in MCD stock with ownership of nearly -1.332% of the company’s market capitalization.
Positions in McDonald’s Corporation stocks held by institutional investors increased at the end of January and at the time of the January reporting period, where 1,233 institutional holders increased their position in McDonald’s Corporation [NYSE:MCD] by around 19,840,532 shares. Additionally, 973 investors decreased positions by around 16,536,033 shares, while 402 investors held positions by with 463,858,579 shares. The mentioned changes placed institutional holdings at 500,235,144 shares, according to the latest SEC report filing. MCD stock had 115 new institutional investments in for a total of 5,756,282 shares, while 99 institutional investors sold positions of 2,153,804 shares during the same period.