Could McDonald’s Corporation Increase After Today’s Tip From Option Traders?

 Could McDonald's Corporation Increase After Today's Tip From Option Traders?

In today’s session McDonald’s Corporation (MCD) recorded an unusually high (504) contracts volume of put trades. Someone, most probably a professional was a very active buyer of the October, 2016 put, expecting serious MCD decrease. With 504 contracts traded and 3764 open interest for the Oct, 16 contract, it seems this is a quite bearish bet. The option with symbol: MCD161021P00118000 closed last at: $4.25 or 37.1% up. About 2.06 million shares traded hands. McDonald’s Corporation (NYSE:MCD) has declined 8.93% since March 15, 2016 and is downtrending. It has underperformed by 14.41% 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 $1.24B for 18.90 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 23 analysts covering McDonald’s Corporation (NYSE:MCD), 13 rate it a “Buy”, 1 “Sell”, while 9 “Hold”. This means 57% are positive. McDonald’s Corporation has been the topic of 53 analyst reports since September 29, 2015 according to StockzIntelligence Inc. The firm earned “Neutral” rating on Monday, October 17 by Nomura. The company was maintained on Friday, October 23 by Barclays Capital. UBS maintained McDonald’s Corporation (NYSE:MCD) on Monday, March 7 with “Buy” rating. Barclays Capital maintained McDonald’s Corporation (NYSE:MCD) on Wednesday, November 11 with “Overweight” rating. Credit Suisse maintained the stock with “Outperform” rating in Monday, June 27 report. As per Wednesday, January 27, the company rating was upgraded by Argus Research. The rating was maintained by BTIG Research with “Buy” on Monday, April 25. The rating was upgraded by BTIG Research to “Buy” on Tuesday, January 19. The firm earned “Buy” rating on Thursday, October 8 by SunTrust. Deutsche Bank maintained it with “Buy” rating and $130 target price in Friday, October 23 report.

According to Zacks Investment Research, “McDonald’s Corporation develops, operates, franchises and services a worldwide system of restaurants that prepare, assemble, package and sell a limited menu of value-priced foods. The company operates primarily in the quick-service hamburger restaurant business. All restaurants are operated by the company or, under the terms of franchise arrangements, by franchisees who are independent third parties, or by affiliates operating under joint-venture agreements between the company and local business people.”

Insitutional Activity: The institutional sentiment decreased to 0.72 in Q2 2016. Its down 0.04, from 0.76 in 2016Q1. The ratio fall, 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.
Sandy Spring Natl Bank has invested 1.07% of its portfolio in McDonald’s Corporation (NYSE:MCD). Allstate, a Illinois-based fund reported 74,381 shares. Morgan Dempsey Cap Mgmt Limited Com holds 0.99% of its portfolio in McDonald’s Corporation (NYSE:MCD) for 24,223 shares. Cincinnati Specialty Underwriters Insurance accumulated 11,500 shares or 1.65% of the stock. Old Second Bank & Trust Of Aurora holds 0.13% of its portfolio in McDonald’s Corporation (NYSE:MCD) for 2,350 shares. Payden & Rygel reported 159,400 shares or 2.18% of all its holdings. Timber Creek Capital Mgmt Limited Company has 0.05% invested in the company for 511 shares. Zacks Management has 0.19% invested in the company for 52,233 shares. Cutler Inv Counsel Limited Liability Com has 66,062 shares for 2.22% of their US portfolio. Sei Invs has 234,387 shares for 0.17% of their US portfolio. Lakeview Cap Ltd Liability holds 0.21% or 2,952 shares in its portfolio. Connor Clark Lunn Management Ltd has 40,715 shares for 0.04% of their US portfolio. Sg Americas Securities Limited Liability Co has invested 1.08% of its portfolio in McDonald’s Corporation (NYSE:MCD). The Massachusetts-based Sirios Mngmt Ltd Partnership has invested 2.5% in McDonald’s Corporation (NYSE:MCD). Moreover, Bremer National Association has 0.35% invested in McDonald’s Corporation (NYSE:MCD) for 10,581 shares.

Insider Transactions: Since April 25, 2016, the stock had 0 buys, and 3 sales for $10.02 million net activity. MCKENNA ANDREW J sold 70,000 shares worth $8.28M. On Monday, April 25 the insider OZAN KEVIN M sold $1.63 million. The insider Mullens Brian sold 845 shares worth $108,946.

McDonald’s Corporation operates and franchises McDonald’s restaurants. The company has a market cap of $94.09 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 21.32 P/E ratio. The Company’s divisions include U.S., International Lead Markets, High Growth Markets and Foundational Markets and Corporate.

MCD Company Profile

McDonald’s Corporation (McDonald’s), incorporated on December 21, 1964, operates and franchises McDonald’s restaurants. The Company’s restaurants serve a locally-relevant menu of quality food and drinks sold at various price points in over 100 countries. The Company’s divisions include U.S., International Lead Markets, High Growth Markets and Foundational Markets and Corporate. Of the approximately 36,525 restaurants in over 120 countries approximately 30,080 are franchised and over 6,444 are operated by the Company. McDonald’s franchised restaurants are owned and operated under various structures, including conventional franchise, developmental license or affiliate. The Firm is primarily a franchisor, with over 80% of McDonald’s restaurants owned and operated by independent franchisees. Under a conventional franchise arrangement, the Company owns the land and building or secures a long-term lease for the restaurant location and the franchisee pays for equipment, signs, seating and decor. The Firm uses the developmental license ownership structure in over 70 countries with a total of approximately 5,500 restaurants.

More notable recent McDonald’s Corporation (NYSE:MCD) news were published by: Investorplace.com which released: “McDonald’s Corporation Shakes Up C-Suite to Revive Sales (MCD)” on October 17, 2016, also Usnews.com with their article: “McDonald’s Corporation Shelves Ronald McDonald Amid Clown Sightings (MCD)” published on October 11, 2016, Seekingalpha.com published: “McDonald’s: Buy, Sell Or Hold?” on October 17, 2016. More interesting news about McDonald’s Corporation (NYSE:MCD) were released by: Fool.com and their article: “McDonald’s Corporation Could Have a Whole New Restaurant Concept in the Works” published on September 21, 2016 as well as Seekingalpha.com‘s news article titled: “The Big Mac Disrupted From Above” with publication date: October 18, 2016.

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