CocaCola (NYSE:KO) Shares Gap Up on Earnings Beat

Key Points

• CocaCola shares gapped up following a better-than-expected earnings report, with an earnings per share (EPS) of $0.55 and revenue of $11.40 billion.
• The company announced a quarterly dividend of $0.51 per share, representing an annualized dividend of $2.04 with a yield of 2.9%, payable on December 15th.
• Equities analysts have set a range of price targets for CocaCola, with an average target of $76.69 and the stock receiving a predominantly "Buy" rating from analysts.

CocaCola Company (The) (NYSE:KO - Get Free Report) shares gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $68.44, but opened at $70.57. CocaCola shares last traded at $70.86, with a volume of 11,900,305 shares traded.

The company reported $0.55 earnings per share (EPS) for the quarter. The company had revenue of $11.40 billion during the quarter. CocaCola had a return on equity of 44.91% and a net margin of 25.89%.

CocaCola Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, December 15th. Shareholders of record on Monday, December 1st will be issued a $0.51 dividend. This represents a $2.04 annualized dividend and a yield of 2.9%. The ex-dividend date is Monday, December 1st. CocaCola's dividend payout ratio is presently 72.34%.

Analysts Set New Price Targets

A number of equities analysts have recently weighed in on the company. Royal Bank Of Canada set a $76.00 price target on CocaCola and gave the stock an "outperform" rating in a report on Monday, July 21st. Wells Fargo & Company reduced their price target on CocaCola from $78.00 to $75.00 and set an "overweight" rating on the stock in a research report on Thursday, September 25th. JPMorgan Chase & Co. raised their target price on CocaCola from $77.00 to $79.00 and gave the stock an "overweight" rating in a research report on Wednesday, July 23rd. UBS Group dropped their price target on CocaCola from $84.00 to $80.00 and set a "buy" rating on the stock in a research note on Thursday, September 11th. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of CocaCola in a research note on Wednesday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating and fourteen have assigned a Buy rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Buy" and an average price target of $76.69.

Insiders Place Their Bets

In other CocaCola news, insider Nikolaos Koumettis sold 37,396 shares of CocaCola stock in a transaction that occurred on Tuesday, August 5th. The stock was sold at an average price of $69.10, for a total transaction of $2,584,063.60. Following the sale, the insider directly owned 209,513 shares of the company's stock, valued at approximately $14,477,348.30. The trade was a 15.15% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.97% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. MorganRosel Wealth Management LLC bought a new position in CocaCola in the 1st quarter worth approximately $25,000. 1248 Management LLC bought a new stake in shares of CocaCola during the 1st quarter valued at $26,000. Caitong International Asset Management Co. Ltd raised its position in shares of CocaCola by 5,142.9% during the 2nd quarter. Caitong International Asset Management Co. Ltd now owns 367 shares of the company's stock valued at $26,000 after acquiring an additional 360 shares during the last quarter. Headlands Technologies LLC bought a new stake in shares of CocaCola during the 2nd quarter valued at $26,000. Finally, Garde Capital Inc. bought a new stake in shares of CocaCola during the 1st quarter valued at $30,000. 70.26% of the stock is owned by institutional investors and hedge funds.

CocaCola Stock Up 3.6%

The company has a debt-to-equity ratio of 1.49, a quick ratio of 0.98 and a current ratio of 1.21. The firm's 50-day simple moving average is $67.79 and its 200 day simple moving average is $69.69. The company has a market cap of $305.27 billion, a P/E ratio of 25.15, a PEG ratio of 3.57 and a beta of 0.43.

About CocaCola

The Coca-Cola Company, a beverage company, manufactures, markets, and sells various nonalcoholic beverages worldwide. The company provides sparkling soft drinks, sparkling flavors; water, sports, coffee, and tea; juice, value-added dairy, and plant-based beverages; and other beverages. It also offers beverage concentrates and syrups, as well as fountain syrups to fountain retailers, such as restaurants and convenience stores.

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