It Seems McDonald’s Corporation Will Go Down. Had Bearish Options Activity

 It Seems McDonald's Corporation Will Go Down. Had Bearish Options Activity

In today’s session McDonald’s Corporation (MCD) recorded an unusually high (594) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the June, 2017 put, expecting serious MCD decrease. With 594 contracts traded and 5404 open interest for the Jun, 17 contract, it seems this is a quite bearish bet. The option with symbol: MCD170616P00105000 closed last at: $3.55 or 6.6% down. About 4.74M shares traded hands or 5.33% up from the average. McDonald’s Corporation (NYSE:MCD) has declined 3.54% since March 1, 2016 and is downtrending. It has underperformed by 12.78% the S&P500.

Analysts await McDonald’s Corporation (NYSE:MCD) to report earnings on October, 27. They expect $1.48 EPS, up 5.71% or $0.08 from last year’s $1.4 per share. MCD’s profit will be $1.26 billion for 19.14 P/E if the $1.48 EPS becomes a reality. After $1.45 actual EPS reported by McDonald’s Corporation for the previous quarter, Wall Street now forecasts 2.07% EPS growth.

McDonald’s Corporation (NYSE:MCD) Ratings Coverage

Out of 22 analysts covering McDonald’s Corporation (NYSE:MCD), 13 rate it a “Buy”, 1 “Sell”, while 8 “Hold”. This means 59% are positive. $142 is the highest target while $35 is the lowest. The $123.29 average target is 8.81% above today’s ($113.31) stock price. McDonald’s Corporation has been the topic of 51 analyst reports since September 29, 2015 according to StockzIntelligence Inc. Argus Research downgraded the shares of MCD in a report on Monday, August 15 to “Hold” rating. Credit Suisse maintained McDonald’s Corporation (NYSE:MCD) rating on Tuesday, January 26. Credit Suisse has “Outperform” rating and $130 price target. Barclays Capital maintained the shares of MCD in a report on Wednesday, November 11 with “Overweight” rating. Nomura upgraded the stock to “Buy” rating in Monday, January 4 report. On Tuesday, September 29 the stock rating was upgraded by Credit Suisse to “Outperform”. The firm has “Market Perform” rating given on Monday, March 28 by Cowen & Co. As per Friday, October 23, the company rating was upgraded by Piper Jaffray. RBC Capital Markets maintained the stock with “Outperform” rating in Wednesday, November 11 report. The rating was maintained by UBS on Friday, October 23 with “Buy”. Longbow initiated McDonald’s Corporation (NYSE:MCD) on Friday, March 18 with “Neutral” rating.

Insitutional Activity: The institutional sentiment decreased to 0.72 in 2016 Q2. Its down 0.04, from 0.76 in 2016Q1. The ratio turned negative, as 105 funds sold all McDonald’s Corporation shares owned while 619 reduced positions. 92 funds bought stakes while 432 increased positions. They now own 575.61 million shares or 9.50% less from 636.04 million shares in 2016Q1.
The New Jersey-based State Of New Jersey Common Pension Fund D has invested 0.26% in McDonald’s Corporation (NYSE:MCD). Ancora Advsr last reported 0.38% of its portfolio in the stock. Culbertson A N & has 49,169 shares for 2.19% of their US portfolio. First National Tru reported 40,839 shares or 0.75% of all its holdings. The New York-based Stone Run Ltd Liability Com has invested 0.2% in McDonald’s Corporation (NYSE:MCD). Middleton Ma owns 6,589 shares or 0.18% of their US portfolio. Cwm Limited Co accumulated 4,086 shares or 0.04% of the stock. Tiaa Cref Invest Mgmt Ltd Limited Liability Company holds 4.02M shares or 0.37% of its portfolio. Tiedemann Com holds 3,869 shares or 0.09% of its portfolio. Moreover, Legal & General Public Ltd Co has 0.56% invested in McDonald’s Corporation (NYSE:MCD) for 4.41M shares. Budros Ruhlin And Roe Inc owns 14,467 shares or 0.58% of their US portfolio. St Johns Inv Mngmt Co Ltd Co last reported 11,117 shares in the company. Cypress Capital Management Lc (Wy) last reported 1,482 shares in the company. Fagan Assocs last reported 10,009 shares in the company. Lincoln Capital Ltd Liability holds 3.16% or 35,145 shares in its portfolio.

Insider Transactions: Since April 25, 2016, the stock had 0 buys, and 3 sales for $10.02 million net activity. 70,000 McDonald’s Corporation (NYSE:MCD) shares with value of $8.28 million were sold by MCKENNA ANDREW J. On Monday, April 25 OZAN KEVIN M sold $1.63 million worth of the stock or 13,007 shares. $108,946 worth of McDonald’s Corporation (NYSE:MCD) shares were sold by Mullens Brian.

McDonald’s Corporation operates and franchises McDonald’s restaurants. The company has a market cap of $96.25 billion. The Company’s restaurants serve a locally-relevant menu of quality food and drinks sold at various price points in over 100 countries. It has a 21.63 P/E ratio. The Company’s divisions include U.S., International Lead Markets, High Growth Markets and Foundational Markets and Corporate.

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