McDonald's Stock Gains Momentum as Institutional Investors Increase Holdings
McDonald's is once again making headlines in the financial world, and this time, it's all about a significant boost in institutional investments. One of the most notable moves comes from Mirae Asset Global Investments Co. Ltd. , which has increased its stake in McDonald's (NYSE: MCD) by a solid 16.3% in the fourth quarter. This means the firm now owns 79,588 shares , valued at approximately $21.74 million .
And it’s not just Mirae Asset making moves—several other institutional investors have been increasing their holdings in McDonald's as well. The Czech National Bank upped its stake by 6.4% , while Atomi Financial Group Inc. increased its position by a whopping 21.7% . Even smaller firms like Country Trust Bank and Olistico Wealth LLC have jumped in, showing a growing confidence in McDonald's long-term value.
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Now, let’s talk stock performance. McDonald's shares saw a 1.9% increase , trading at $294.37 . This comes after a strong year, where the stock’s lowest point was $243.53 , and its highest reached $317.90 . With a market capitalization of $210.95 billion , the company continues to be a dominant force in the fast-food industry.
Analysts are also weighing in, and the general consensus seems to be optimistic. Evercore ISI recently raised its target price for McDonald's from $320 to $340 , labeling the stock as "outperform." Similarly, Wells Fargo & Company boosted their target price to $350 , highlighting strong potential for future growth. While some analysts have taken a more cautious approach, with KeyCorp lowering its price target to $320 , the overall outlook remains moderately bullish .
Adding to the buzz, McDonald's recently announced a quarterly dividend of $1.77 per share , which will be paid on March 17th . This brings the annual dividend payout to $7.08 per share , reflecting a dividend yield of 2.41% —an attractive figure for long-term investors looking for steady income.
On the insider trading front, there has been some activity worth noting. Joseph M. Erlinger , a top executive at McDonald's, sold 300 shares at an average price of $280.75 , reducing his holdings by 3.66% . Meanwhile, EVP Desiree Ralls-Morrison sold 3,409 shares at $290.15 , cutting her stake by 26.05% . Insider sales like these can sometimes raise concerns, but in this case, they seem to be routine transactions rather than signals of deeper issues.
Looking ahead, McDonald's remains a solid player in the stock market. With a PE ratio of 25.84 and a beta of 0.74 , it offers both stability and growth potential . Institutional investors are clearly seeing something promising, and with analysts forecasting continued strength, McDonald's could be a stock to watch closely in 2025.
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