Iconic fast food group McDonald’s (MCD) reports its Q1 earnings this week – May 7. The stock is down over 6% this year hit by consumer uncertainty, particularly those in lower-income brackets. Increased competition is also putting pressure on margins as are higher supply chain costs.
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Analysts expect MCD to post earnings per share of $2.75, up from $2.67 in the same period last year. Revenues are tipped to hit $6.47 billion, up from $5.9 billion last time.
Let’s look at who has the biggest appetite for MCD stock ahead of its earnings by looking at our Hedge Funds and Insider Trading tools.
Hedge Funds
According to TipRanks analysis Hedge Funds have increased holdings in MCD by 347,000 shares in the last quarter. Based on the activity of 45 Hedge Funds in the recent quarter, they have a Very Positive opinion on MCD stock.
Some recent additions include Caroline Wealth Advisors and Graham Capital Management. New activity includes Blackstone and Discovery Capital Management.
Insider Trading
In contrast, corporate insiders have placed informative sells of shares worth $6.7 million in the last three months. Based on 10 informative insider transactions they hold a very negative sentiment on the stock.
A recent informative sell – April 23 – was made by MCD President Joseph Erlinger, who sold 333 shares at a value of just over $100,000. On April 13, he sold 2,626 shares worth $806,182.
A corporate insider’s share sale usually signals caution about the company’s future potential. However, an insider might sell shares for other reasons, such as financial or personal obligations.
Is MCD a Good Stock to Buy Now?
On TipRanks, MCD has a Moderate Buy consensus based on 14 Buy and 12 Hold ratings. Its highest price target is $385. MCD stock’s consensus price target is $347.13, implying a 21.28% upside.
