McDonald’s Corporation (MCD) Stock: Seeing Gains In Today’s Session

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McDonald’s Corporation (MCD) is making a move up in the market today. The company, focused in the service industry, is currently trading at $186.81 after a move up of 0.24% so far today. When it comes to service sector stocks, there are quite a few factors that have the ability to lead to price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories associated with MCD:

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Mar-23-19 01:23PM McDonalds vs. Burger King: What’s the Difference?
Mar-22-19 12:07PM What Do Gaming Stocks and Marijuana Stocks Have in Common?
08:26AM This tricked-out sofa is a couch potato’s dream prize
Mar-21-19 05:50PM McDonald’s (MCD) Gains But Lags Market: What You Should Know
12:47PM Dominos Pizza Stock Looks Too Cheap

However, any time investors are making an investing decision, prospective investors should focus on far more than news, this is especially the case in the ever complex service sector. Here’s what’s happing when it comes to McDonald’s Corporation.

Recent Movement From MCD

While a gain in a single session, like the move that we’re seeing from McDonald’s Corporation may make some investors fearful, that by itself should not be the reason for a decision to, or not to, buy a company’s stock. It’s always smart to look at trends just a single trading session. As it relates to MCD, below are the returns that we’ve seen:

  • Past 7 Days – Throughout the last week, MCD has generated a change in value in the amount of 0.80%.
  • Past 30 Days – The return on investment from McDonald’s Corporation in the past month has been 2.19%.
  • Past 3 Months – Over the last quarter, the stock has produced a return on investment of 4.27%
  • Past Six Months – Throughout the last 6 months, investors have seen a performance of 17.36% from the company.
  • This Year So Far – Since the open of this year MCD has resulted in a ROI of 5.20%.
  • Annually – Finally, throughout the last full year, we have seen performance of 17.74% from MCD. In this period of time, the stock has sold at a high price of -2.13% and a low price of 21.99%.

Ratios To Watch

Looking at various key ratios associated with a stock can provide investors an understanding of how dangerous and/or potentially profitable a an investment option may be. Below are a few of the important ratios to consider when digging into MCD.

Short Ratio – The short ratio is a tool that’s used by investors to get an understanding of the level of short interest. As the short ratio goes higher, it means that more investors believe that the price of the stock is going to head up. Across the sector, strong service sector stocks can come with a lower short ratio. On the other hand, we tend to see a lot of short squeezes in the industry. Nonetheless, in regard to McDonald’s Corporation, it’s short ratio amounts to 1.59.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure whether or not a company can cover its debts as they mature with only quick assets or current assets. do have positive quick and current ratios. As it relates to MCD, the quick and current ratios total up to 1.30 and 1.40 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets that are owned by the company. In this case, the book to share value ratio is -8.14.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the value of the company’s stock. In this case, the cash to share value comes to 1.13.

Big Money And McDonald’s Corporation

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in MCD, here’s what we’re seeing:

  • Institutions – At the moment, institutions hold 70.00% of MCD. Nonetheless, it is worth considering that institutional ownership has seen a move in the amount of 0.38% over the past 3 months.
  • Investors On The Inside – with regard to insiders, insiders of the company currently own 0.06% of McDonald’s Corporation. Their ownership of the company has seen a change of -38.28% throughout the past 3 months.

Analyst Opinions With Regard To McDonald’s Corporation

Although it’s rarely a smart idea to unknowingly follow the opinions of analysts, it is a good idea to use their analysis when validating your own opinions when it comes to making investment decisions in the service space. Below you’ll find the most recent moves that we have seen from analysts with regard to MCD.

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Feb-19-19 Upgrade Stephens Equal-Weight → Overweight $180 → $200
Nov-29-18 Upgrade Morgan Stanley Equal-Weight → Overweight
Oct-24-18 Reiterated Telsey Advisory Group Outperform $175 → $195
Oct-19-18 Initiated Gordon Haskett Buy
Oct-15-18 Upgrade Evercore ISI In-line → Outperform

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $8.80. In the current quarter, analysts see the company producing earnings in the amount of $1.79. Over the last 5 years, MCD has generated revenue in the amount of $-5.60% with earnings coming in at 6.60%. On a quarter over quarter basis, earnings have seen movement of 2.90% and revenue has seen movement of -3.30%.

Looking At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 769.20M shares of McDonald’s Corporation outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, MCD has a float of 764.83M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to MCD, the short percent of the float is 0.77%.

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