Institutional investor 1832 Asset Management L.P. has reduced its stake in the Coca-Cola Company (NYSE: KO), selling 111,123 shares during the second quarter of 2023. This sale represents a decrease of 2.9% in the firm’s holdings, leaving it with 3,674,856 shares, valued at approximately $259.996 million according to its latest filing with the Securities and Exchange Commission.
This adjustment comes amidst a broader shift in investor sentiment towards Coca-Cola. Other institutional investors have also recently re-evaluated their positions. For instance, Vanguard Group Inc. increased its holdings by 1.7%, now owning 367,441,971 shares worth around $25.997 billion after acquiring an additional 6,241,163 shares this quarter. Similarly, Perigon Wealth Management LLC expanded its stake by 3.6%, now holding 130,164 shares valued at approximately $9.209 million.
Another notable player, UBS Asset Management, raised its stake by 6.2%, bringing its total to 30,889,415 shares worth about $2.212 billion. On the other hand, Virginia Retirement Systems initiated a new position in Coca-Cola valued at $22.443 million. Collectively, institutional investors and hedge funds own around 70.26% of Coca-Cola’s stock.
Insider Trading and Analyst Ratings
Recent insider trading activity has also been noteworthy. On November 11, 2023, Henrique Braun, the Chief Operating Officer, sold 40,390 shares at an average price of $70.93, totaling approximately $2.865 million. Following this transaction, Braun’s remaining shares stood at 62,621, valued at roughly $4.442 million, reflecting a significant drop of 39.21% in his ownership.
Conversely, Max R. Levchin, a director at Coca-Cola, increased his stake by acquiring 7,206 shares on October 24, 2023, at an average price of $69.87. This purchase, valued at about $503,483, resulted in a 102.05% increase in his holdings, bringing his total to 14,267 shares worth approximately $996,835. Recent disclosures indicate that insiders sold a total of 225,252 shares over the last three months, amounting to about $15.953 million, with insiders now holding 0.97% of the company’s stock.
Several analysts have weighed in on Coca-Cola’s stock performance. Barclays reaffirmed an “overweight” rating, while UBS Group adjusted its price target down from $84.00 to $80.00, maintaining a “buy” rating. Bank of America raised its target from $78.00 to $80.00 while also endorsing a “buy” rating. Overall, analysts show a strong consensus on Coca-Cola, with one rating it as a “Strong Buy” and sixteen others issuing a “Buy” rating, leading to an average target price of $78.43.
Coca-Cola’s Financial Overview
As of the latest trading session, Coca-Cola’s stock opened at $70.70. The company boasts a market capitalization of $304.13 billion, a P/E ratio of 23.41, and a PEG ratio of 3.57. The stock has fluctuated within a one-year range of $60.62 to $74.38. Financial metrics reveal a debt-to-equity ratio of 1.30, a current ratio of 1.21, and a quick ratio of 1.00.
Coca-Cola reported earnings of $0.55 per share for the last quarter, with total revenue reaching $11.40 billion. The company demonstrated a net margin of 27.34% and a return on equity of 43.62%. Analysts predict that Coca-Cola will post an EPS of 2.96 for the current fiscal year.
In addition, Coca-Cola announced a quarterly dividend of $0.51 per share, payable on December 15, 2023, to shareholders of record as of December 1, 2023. This translates to an annualized dividend of $2.04 and a dividend yield of 2.9%. The company’s current dividend payout ratio is 67.55%.
The Coca-Cola Company continues to expand its global reach by manufacturing, marketing, and selling a wide variety of nonalcoholic beverages, including soft drinks, water, coffee, and plant-based drinks. Investors and analysts alike will be closely monitoring these developments as the company navigates the competitive beverage market.
