Value Hunters: Look To The Coca-Cola Company (KO)

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BlackRock Fund Advisors recently announced the acquisition of new stake in The Coca-Cola Company (NYSE:KO). The institutional investor has increased its shareholding in the Consumer Defensive company by 9.29% to 208.56 million shares with purchase of 17.73 million shares. This fresh investment now brings its stake to 4.86% valued currently at $9.85 billion. In addition, SSgA Funds Management, Inc. raised its holdings by 0.99 million to 184.3 million shares. And Wellington Management Co. LLP has lifted its position by 5.93% or 6.08 million shares – to 108.78 million shares.

With over 9.25 million The Coca-Cola Company (KO) shares trading Monday and a closing price of $47.97 on the day, the dollar volume was approximately $443.79 million. The shares have shown a negative weekly performance of -0.50% and its price on 08/24/20 gained nearly 1.46%. Currently, there are 4.30B common shares owned by the public and among those 4.27B shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 21 analysts who have offered their price forecasts for KO have a consensus price objective of $53.58. The analysts have set the share’s price value over the next 12 months at a high of $60.00 and a low of $47.00 should the stock experience a downside. Incidentally, analysts’ outlook for the The Coca-Cola Company stock is 2.00 for the next 12 months. The average price target is 10.42% above its last price level and an upside to the estimated low will see the stock lose -2.06% over that period. But an upside of 20.05% will see the stock hit the forecast high price target while mean target price for the stock is $54.00.

Insiders at the company have transacted a total of 95 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 41 of these insider trades were purchases, accounting for 1,422,551 shares. Insider sales of the common stock occurred on 54 occasions, with total insider shares sold totaling 2,444,344 shares.

The top 3 mutual fund holders in The Coca-Cola Company are Vanguard Total Stock Market Index, Vanguard 500 Index Fund, and SPDR S&P 500 ETF. Vanguard Total Stock Market Index owns 109.95 million shares of the company’s stock, all valued at over $5.19 billion. The company sold -0.23 million shares recently to bring their total holdings to about 2.56% of the shares outstanding. Vanguard 500 Index Fund sold -0.49 million shares to see its total holdings shrink to 79.71 million shares valued at over $3.77 billion and representing 1.86% of the shares outstanding. SPDR S&P 500 ETF bought 83844.0 shares to bring its total holdings to over 41.46 million shares at a value of $1.96 billion. SPDR S&P 500 ETF now owns shares totaling to 0.97% of the shares outstanding.

Shares of The Coca-Cola Company (NYSE: KO) opened at $47.43, up $0.15 from a prior closing price of $47.28. However, the script later closed the day at $47.97, up 1.46%. The company’s stock has a 5-day price change of -0.50% and 4.08% over the past three months. KO shares are trading -13.33% year to date (YTD), with the 12-month market performance down to -10.74% lower. It has a 12-month low price of $36.27 and touched a high of $60.13 over the same period. Currently, 9.25 million shares have been traded, compared to an average intraday trading volume of 16.70 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 0.50%, 2.95%, and -4.35% respectively.

Institutional ownership of The Coca-Cola Company (NYSE: KO) shares accounts for 68.00% of the company’s 4.30B shares outstanding. Mutual fund holders own 30.35%, while other institutional holders and individual stakeholders account for 37.65% and 15.16% respectively.

It has a market capitalization of $206.36B and a beta (3y monthly) value of 0.54. The stock’s trailing 12-month PE ratio is 22.56, while the earnings-per-share (ttm) stands at $2.13. The company has a PEG of 7.68 and a Quick Ratio of 1.00 with the debt-to-equity ratio at 2.99. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.50% over the week and 1.59% over the month.

Analysts forecast that The Coca-Cola Company (KO) will achieve an EPS of $0.46 for the current quarter, $0.42 for the next quarter and $2.06 for 2021. The lowest estimate earnings-per-share for the quarter is $0.42 while analysts give the company a high EPS estimate of $0.49. Comparatively, EPS for the current quarter was $0.56 a year ago. Earnings per share for the fiscal year are expected to increase by 38.00%, and 13.66% over the next financial year. EPS should shrink at an annualized rate of 2.94% over the next five years, compared to 5.30% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 21 brokerage firm advisors rate The Coca-Cola Company (KO) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 14 Wall Street analysts polled rate the stock as a buy, while 4 of the 21 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the KO, a number of firms have released research notes about the stock. Morgan Stanley stated their Overweight rating for the stock in a research note on July 22, 2020, with the firm’s price target at $54. Goldman coverage for the The Coca-Cola Company (KO) stock in a research note released on April 01, 2020 offered a Neutral rating with a price target of $46. Argus was of a view on March 27, 2020 that the stock is Buy, while DZ Bank gave the stock Buy rating on March 25, 2020, issuing a price target of $51. HSBC Securities on their part issued Buy rating on March 24, 2020.

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