UMB Bank Trims McDonald’s Stake by 1.6%, Insiders Sell $13.8M Shares After Q3 EPS Miss
UMB Bank reduced its position by 1.6% to 128,795 shares valued at $39.14 million in the third quarter, while insiders sold 45,142 shares worth $13.84 million, decreasing their holdings by up to 58.8%. McDonald’s reported Q3 earnings per share of $3.22, missing the $3.33 consensus, and revenue of $7.08 billion fell short of the $7.10 billion estimate despite a 3.0% year-over-year sales increase.
1. Quarterly Performance and Profitability
In its most recent quarterly report, McDonald’s Corporation delivered earnings per share of 3.22 dollars, representing a 0.3% decline from the year-ago quarter and missing the consensus estimate by 0.11 dollars. Revenue rose 3.0% year-over-year to 7.08 billion dollars, narrowly shy of analyst expectations. The company reported a net margin of 32.04% and a negative return on equity of 280.89%, reflecting elevated share repurchases and leverage. Comparable sales in established markets grew low single digits, driven by menu price adjustments and digital sales penetration reaching nearly 25% of total transactions.
2. Analyst Consensus and Target Price Trends
Among 30 research firms covering McDonald’s, thirteen assign a Buy rating, fifteen a Hold and two a Sell, yielding a consensus Hold recommendation. The average target price stands at 328.88 dollars, with the highest objective at 356 dollars and the lowest at 305 dollars. Since the last earnings release, two major brokerages have raised their targets—Robert W. Baird from 322 to 325 dollars and Truist Financial from 350 to 356 dollars—while maintaining neutral and buy endorsements respectively.
3. Institutional Ownership Adjustments
Data from the latest 13F filings show that UMB Bank reduced its stake by 1.6%, selling 2,144 shares and ending the quarter with 128,795 shares valued at 39.14 million dollars. Meanwhile, Norges Bank initiated a new position worth approximately 2.78 billion dollars, and Laurel Wealth Advisors increased its holding by over 29,000%, adding 5.72 million shares. Hedge funds and institutional investors now collectively own 70.29% of the company’s outstanding shares, underscoring continued confidence in the long-term growth strategy.