Only Eight Dow Components With Recent Insider Buying, MCD is One of Them

Jan 27 2014, 11:13am CST | by

The officers and directors of a company tend to have a unique inside view into the business, so when these insiders make purchases, investors are wise to take notice. Presumably the only reason for a company insider to choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. Within the 30 components of the Dow Jones Industrial Average, only eight companies have experienced such buying over the trailing six month period, one of which was McDonald’s Corp (NYSE: MCD), where an investment totaling $40.2K was made by Director Cary D. McMillan. Click Here to Learn Which Other Seven Dow Components Also Had Recent Insider Buying »

Click here to find out which other top insider buys by company directors you need to know about »

McMillan bets big on MCD:

Purchased Insider Title Shares Price/Share Value
10/25/2013 Cary D. McMillan Director 425 $94.71 $40,250.47

McMillan’s average cost works out to $94.71/share. In trading on Monday, bargain hunters could buy shares of McDonald’s Corp (NYSE: MCD) and achieve a cost basis lower than McMillan, with shares changing hands as low as $94.02 per share. It should be noted that McMillan has collected $0.81/share in dividends since the time of their purchase, so they are currently up 0.1% on their purchase from a total return basis. Shares of McDonald’s Corp were changing hands at $94.43 at last check, trading trading flat on Monday. The chart below shows the one year performance of MCD shares, versus its 200 day moving average:

Looking at the chart above, MCD’s low point in its 52 week range is $93.02 per share, with $103.70 as the 52 week high point — that compares with a last trade of $94.43.

The current annualized dividend paid by McDonald’s Corp is $3.24/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 11/27/2013. Below is a long-term dividend history chart for MCD, which can be of good help in judging whether the most recent dividend with approx. 3.4% annualized yield is likely to continue.

According to the ETF Finder at ETFChannel.com, MCD makes up 4.82% of the Wide Moat ETF (AMEX: MOAT) which is trading lower by about 0.5% on the day Monday.


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Source: Forbes Business

 
 

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