Wedbush launched its McDonald’s [MCD] rating to the equivalent of Outperform and assigned the price target of 240.0, in a research note dated 2021-01-05. That figure represents around a 14.21% premium from where the company’s shares closed on Monday. Some new analysts also started their coverage, with Northcoast’s analysts assigning the shares to “a Buy” rating in a research note to investors issued in mid December. Meanwhile, UBS had raised its rating on MCD to “Buy” from the earlier “Neutral”, in a research note produced for clients December 14, 2020. In addition, there was a downgrade from Stephens on December 07, 2020. The rater changed MCD from “an Overweight” to ”an Equal-weight”.
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Is McDonald’s Corporation [NYSE:MCD] a Good Buy Right Now?
It should be noted that MCD technical indicators for short, intermediate as well as long term progress have placed an overall average of 8% as Sell. The average signal changed from 8% Buy in the last week and compares with 24% Buy in the past month. Data from McDonald’s Corporation’s Trend Spotter indicated that the signals were Strongest. The stock current average is 3.13 million shares in the past 20 days and the short term average signal indicates a 50% Sell. In the last 50 days, the average trading volume was 3.29 million shares while the medium term average advocated for Hold. The average long-term signal stands at 50% Buy and the 100-day average volume stands at 3.0 million shares.
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MCD Price Performance
On Wall Street, McDonald’s Corporation [NYSE:MCD] finished Monday’s session down -2.03% at $210.22. The stock went up to $214.72 at the same session while its lowest single day price was $208.22. In the last five days, it saw a fall of about -0.55%, McDonald’s Corporation shares dropped by almost -2.03% since the beginning of the year. However, the share price has dropped to as low as -9.35% below its one year high. On 01/04/21, the company shares recorded $214.72, the highest single-day price it has got to in the last 52-weeks and a 52-week low was seen on 01/04/21, the same year at $208.22. The company’s shares have inclined by 5.07% in the past year. The 50-day SMA achieved is $214.72 while the 200-day SMA is $200.47. Volume gained to 4.06 million from 2.61 million in the previous session.
McDonald’s Corporation [MCD] Valuation Measures
Notably, McDonald’s Corporation [MCD] stock can be classified as a good candidate in the listing of underestimated low-priced Restaurants companies to purchase soonest possible with the prevailing 12-month PE ratio of 32.08. The measure means the stock is exchanging at a discount as compared to the 32.52x trailing earnings of the industry. It can be helpful for investors to consider historical price-sales ratio, more specifically, a 8.03 PS value ratio is reported for the last one year of reported earnings. That is higher than the industry average of 0.93 which means MCD serve an attractive investment opportunity compared to its competitors.
MCD Stock Support And Resistance Levels
On the 24-hour scale, the immediate backing is perceived around 207.39 level, and in case of violation of this particular level, it will cause more drop to 204.55 level. On the upper level, 217.55 is still the key resistance. The stock may increase to the subsequent resistance at 213.89. The Relative Strength Index (RSI) pinned on the 14-day chart is 43.77, implying a neutral technical stance while the MACD stands at -0.74, meaning price will decrease in the next trading period. Percent R indicator moved to 76.74%, implying bearish price movement. Stochastic %K at 56.30% suggest selling the stock.
What is the short interest in McDonald’s Corporation?
Short interest in the McDonald’s Corporation stock has plunged, decreasing by -1.36 million shares to total 6.08 million shares on Dec 14, 2020. The interest had seen shares on Nov 12, 2020 stand at 4.72 million, data from Yahoo Finance shows. The increase of 22.37% suggests the stock saw some increased bearish sentiment. The stock’s days to cover (short ratio) moved to while the shorted shares account for just 0.82% of the overall float for the stock.
McDonald’s Corporation’s Biggest Shareholders: Who Owns McDonald’s Corporation [MCD]?
Filings by The Vanguard Group, Inc. showed that the firm now holds a total of 62,098,549 shares or roughly 8.33% of the outstanding MCD shares. This means their shares have reduced by -603,850 from the 62,098,549 the investor reportedly held in its prior 13-F filing. With the conclusion of the sale, SSgA Funds Management, Inc. updated stake is worth $8,297,625,208. Details in the latest 13F filings reveal that Wellington Management Co. LLP acquired their 11.45% stake valued at $8,220,224,396 while BlackRock Fund Advisors cut theirs at $7,674,352,800. During the last quarter, Wellington Management Co. LLP raised 3,883,678 of its shares in McDonald’s Corporation while BlackRock Fund Advisors sold -595,275 shares. The Geode Capital Management LLC’s holdings currently number 11,286,295 shares at $2372604934.9. According to the firm’s last 13F report, Northern Trust Investments, Inc. shares in the company at filing stood at 10,774,586 shares, roughly $2,342,825,980.
MCD Earnings Forecast For The Current Quarter
McDonald’s Corporation [MCD] is expected to report weak earnings results for the quarter ending on Dec 2020. Consensus estimates give the company expected revenues of $5.38B and an earnings per share of $1.81 for Dec 2020. Looking further ahead, the company is expected to report revenue of $5.06B at an EPS of $1.8 for Mar 2021. The estimates represent upside of 13.70% and 34.27% in the company’s revenue and earnings per share, respectively, on a year-on-year basis.
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MCD Earnings Estimates For The Current Year
For the financial year, McDonald’s Corporation [NYSE:MCD] is expected to bring in revenue of $19.29B. The returns are nearly $-1.79 billion lower than the company’s actual revenue recorded in the fiscal year 2019. In terms of EPS for the 2020, estimate put it at 6.2, lower than that of FY19 by -$1.64. Estimates put this year’s earnings growth at -20.90%, 34.40% for the next, and at an annual 5.59% over the next 5-year period. As for sales, forecasts are for a decrease of -8.50% in the current fiscal year and a further 13.70% over the following year.
