Coca-Cola Co. (NYSE:KO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday.
According to Zacks, “Coca-Cola’s increased marketing investments are supporting improved volume growth in stable markets like North America. Moreover, the accelerated re-franchising efforts should drive greater returns. Also, Coca-Cola’s new revenue platforms should drive growth over the long term. However, the top line needs to show sustained improvement. Though markets like North America, Japan and India remain strong, continued weakness in some emerging markets like China, Russia and Brazil is holding back significant sales acceleration. At the second quarter conference call, it lowered its 2016 sales outlook due to weakening demand in some large emerging/developing markets. Furthermore, weak sparkling beverage volumes as well as currency and structural headwinds over the next couple of years pose threats. Also, estimates have been moving downward lately ahead of the company's third quarter earnings release.”
Several other research analysts also recently commented on the company. Independent Research GmbH set a $38.00 target price on Coca-Cola and gave the stock a “sell” rating in a research note on Monday, August 1st. Vetr downgraded Coca-Cola from a “strong-buy” rating to a “buy” rating and set a $46.93 target price for the company. in a research note on Thursday, September 15th. Deutsche Bank AG reissued a “buy” rating on shares of Coca-Cola in a research note on Sunday, July 24th. Credit Suisse Group AG started coverage on Coca-Cola in a research note on Thursday, September 15th. They set a “neutral” rating and a $44.00 target price for the company. Finally, SunTrust Banks Inc. reissued a “buy” rating on shares of Coca-Cola in a research note on Sunday, July 31st. Two research analysts have rated the stock with a sell rating, eleven have given a hold rating and eleven have issued a buy rating to the company’s stock. The company has a consensus rating of “Hold” and an average target price of $46.50.
Shares of Coca-Cola (NYSE:KO) opened at 41.81 on Tuesday. The company has a 50 day moving average of $42.93 and a 200-day moving average of $44.53. Coca-Cola has a 12 month low of $40.75 and a 12 month high of $47.13. The firm has a market capitalization of $180.45 billion, a P/E ratio of 24.06 and a beta of 0.59.
Coca-Cola (NYSE:KO) last issued its earnings results on Wednesday, July 27th. The company reported $0.60 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.58 by $0.02. The firm earned $11.50 billion during the quarter, compared to the consensus estimate of $11.69 billion. Coca-Cola had a return on equity of 32.78% and a net margin of 17.61%. The business’s quarterly revenue was down 5.1% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.63 earnings per share. Analysts predict that Coca-Cola will post $1.91 EPS for the current year.
The business also recently declared a quarterly dividend, which was paid on Monday, October 3rd. Investors of record on Thursday, September 15th were given a $0.35 dividend. This represents a $1.40 dividend on an annualized basis and a yield of 3.35%. The ex-dividend date was Tuesday, September 13th. Coca-Cola’s payout ratio is currently 80.46%.
A number of large investors have recently added to or reduced their stakes in the stock. CHURCHILL MANAGEMENT Corp raised its stake in Coca-Cola by 10.3% in the second quarter. CHURCHILL MANAGEMENT Corp now owns 346,940 shares of the company’s stock worth $15,727,000 after buying an additional 32,457 shares during the last quarter. BNP Paribas Arbitrage SA raised its stake in Coca-Cola by 19.7% in the second quarter. BNP Paribas Arbitrage SA now owns 2,099,270 shares of the company’s stock worth $95,160,000 after buying an additional 345,810 shares during the last quarter. Credit Agricole S A raised its stake in Coca-Cola by 5.5% in the first quarter. Credit Agricole S A now owns 4,556,956 shares of the company’s stock worth $211,397,000 after buying an additional 238,344 shares during the last quarter. Capstone Asset Management Co. raised its stake in Coca-Cola by 0.4% in the second quarter. Capstone Asset Management Co. now owns 673,917 shares of the company’s stock worth $30,549,000 after buying an additional 2,488 shares during the last quarter. Finally, Avalon Advisors LLC raised its stake in Coca-Cola by 10.3% in the first quarter. Avalon Advisors LLC now owns 661,940 shares of the company’s stock worth $30,707,000 after buying an additional 62,060 shares during the last quarter. 64.33% of the stock is owned by institutional investors and hedge funds.
The Coca-Cola Company is a beverage company. The Company owns or licenses and markets over 500 nonalcoholic beverage brands, primarily sparkling beverages but also a range of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Coca-Cola Co. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Coca-Cola Co. and related companies with MarketBeat.com's FREE daily email newsletter.