Executive VP Desiree Ralls-Morrison Sold A Bunch Of Shares In McDonald's

Some McDonald's Corporation (NYSE:MCD) shareholders may be a little concerned to see that the Executive VP, Desiree Ralls-Morrison, recently sold a substantial US$2.0m worth of stock at a price of US$290 per share. That diminished their holding by a very significant 52%, which arguably implies a strong desire to reallocate capital.

View our latest analysis for McDonald's

McDonald's Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chairman & CEO, Christopher Kempczinski, sold US$5.5m worth of shares at a price of US$300 per share. That means that an insider was selling shares at around the current price of US$290. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

McDonald's insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does McDonald's Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that McDonald's insiders own 0.07% of the company, worth about US$142m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The McDonald's Insider Transactions Indicate?

Insiders sold McDonald's shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that McDonald's is growing earnings. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 2 warning signs for McDonald's that deserve your attention before buying any shares.

But note: McDonald's may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.