CocaCola Company (The) (KO) - What Are Researchers Thinking About This Stock?

Key Points

• Analysts remain broadly bullish: Twenty of 23 covering analysts rate Coca-Cola a buy, one rates it a strong buy and two recommend holding; the average 12-month price target is $95.95.
• Coca-Cola exceeded quarterly earnings and revenue expectations, raised its full-year adjusted earnings guidance, and continues investing in global brands, marketing and prebiotic beverages to support growth.
• Key risks include valuation and cash flow: KO trades at an elevated earnings multiple, while reported dividend payments exceeded free cash flow and the company is reviewing strategic options for Costa Coffee.

CocaCola Company (The) (NYSE:KO - Get Free Report) has received an average recommendation of "Moderate Buy" from the twenty-three analysts that are presently covering the stock, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a hold recommendation, twenty have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average twelve-month price target among brokerages that have issued a report on the stock in the last year is $95.95.

Several research analysts have recently weighed in on KO shares. Bank of America upped their target price on CocaCola from $95.00 to $100.00 and gave the stock a "buy" rating in a research note on Wednesday, July 29th. Weiss Ratings upgraded CocaCola from a "buy (a-)" rating to a "buy (a+)" rating in a research report on Thursday, October 8th. TD Cowen lifted their price target on shares of CocaCola from $90.00 to $100.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. DZ Bank reissued a "buy" rating on shares of CocaCola in a research note on Wednesday, July 29th. Finally, Evercore reissued an "outperform" rating and issued a $100.00 price target (up from $88.00) on shares of CocaCola in a report on Tuesday, July 28th.

Key Stories Impacting CocaCola

Here are the key news stories impacting CocaCola this week:

• Positive Sentiment: Coca-Cola raised its full-year adjusted earnings guidance, contrasting with PepsiCo’s lower outlook amid rising costs. The more favorable guidance supports the case for KO’s premium valuation. Coca-Cola vs. PepsiCo: Which Dividend King Deserves a Premium Valuation Right Now?
• Positive Sentiment: Coca-Cola’s powerful global brands, broad distribution network and marketing investments continue to support a durable competitive moat. AI-assisted marketing, consumer insights and major campaigns are intended to improve volume growth, margins and marketing returns. Can Coca-Cola’s Marketing Investments Keep Improving Returns?
• Positive Sentiment: The company’s 63-year streak of annual dividend increases reinforces its appeal as a defensive income investment, particularly as markets favor dependable cash-generating businesses. Coca-Cola Has Raised Dividends for 63 Years. Can It Make It Another Decade?
• Positive Sentiment: Coca-Cola is expanding its presence in the fast-growing prebiotic soda category, positioning its portfolio to compete with Poppi and Olipop and capture changing consumer preferences. Coca-Cola has a gut feeling it can take on Poppi and Olipop
• Neutral Sentiment: Reports indicate Coca-Cola is reviewing strategic alternatives for Costa Coffee, including a possible sale. A divestiture could improve capital allocation, but the discussions are preliminary and there is no agreed valuation or timetable. Does Coca-Cola Need To Rethink Its Coffee Strategy?
• Neutral Sentiment: Analyst commentary says KO has outperformed some consumer-staples peers this year, supporting investor interest, though the stock’s elevated valuation leaves less room for execution disappointments. Is Coca-Cola Stock Outpacing Its Consumer Staples Peers This Year?
• Negative Sentiment: Coca-Cola’s dividend payments reportedly exceeded free cash flow by billions last year. Although the long payout streak is attractive, sustained under-coverage could constrain financial flexibility or increase reliance on borrowing. Coca-Cola Has Raised Dividends for 63 Years. Can It Make It Another Decade?

CocaCola Stock Performance

NYSE KO opened at $90.21 on Wednesday. The stock has a market capitalization of $388.13 billion, a price-to-earnings ratio of 27.09, a PEG ratio of 3.49 and a beta of 0.32. CocaCola has a twelve month low of $66.75 and a twelve month high of $92.49. The company has a current ratio of 1.30, a quick ratio of 1.12 and a debt-to-equity ratio of 0.97. The stock has a 50-day moving average of $88.14 and a 200 day moving average of $83.04.

CocaCola (NYSE:KO - Get Free Report) last issued its quarterly earnings results on Tuesday, July 28th. The company reported $0.97 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.93 by $0.04. CocaCola had a return on equity of 39.38% and a net margin of 28.56%. The company had revenue of $13.37 billion for the quarter, compared to the consensus estimate of $13.17 billion. During the same quarter in the prior year, the business posted $0.87 earnings per share. CocaCola's revenue for the quarter was up 6.2% on a year-over-year basis. CocaCola has set its FY 2026 guidance at 3.270-3.300 EPS. Sell-side analysts anticipate that CocaCola will post 3.30 EPS for the current fiscal year.

Insider Buying and Selling at CocaCola

In other news, CFO John Murphy sold 152,483 shares of CocaCola stock in a transaction dated Friday, July 31st. The shares were sold at an average price of $87.31, for a total value of $13,313,290.73. Following the sale, the chief financial officer owned 279,917 shares in the company, valued at $24,439,553.27. This trade represents a 35.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Chairman James Quincey sold 381,140 shares of CocaCola stock in a transaction dated Tuesday, July 28th. The shares were sold at an average price of $90.04, for a total transaction of $34,317,845.60. Following the completion of the sale, the chairman owned 122,833 shares in the company, valued at approximately $11,059,883.32. This trade represents a 75.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 926,620 shares of company stock valued at $83,075,714. Insiders own 0.90% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Bank of America Corp DE lifted its position in shares of CocaCola by 4.4% in the second quarter. Bank of America Corp DE now owns 45,958,636 shares of the company's stock valued at $3,735,058,000 after acquiring an additional 1,939,673 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in shares of CocaCola by 0.4% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 36,354,414 shares of the company's stock worth $2,954,523,000 after purchasing an additional 162,097 shares in the last quarter. Wellington Management Group LLP increased its position in shares of CocaCola by 9.2% during the second quarter. Wellington Management Group LLP now owns 29,053,752 shares of the company's stock worth $2,361,198,000 after purchasing an additional 2,439,026 shares in the last quarter. Invesco Ltd. raised its stake in CocaCola by 6.7% in the 4th quarter. Invesco Ltd. now owns 28,520,214 shares of the company's stock valued at $1,993,848,000 after purchasing an additional 1,798,371 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in CocaCola by 1.3% in the 1st quarter. Dimensional Fund Advisors LP now owns 18,822,295 shares of the company's stock valued at $1,431,495,000 after purchasing an additional 235,785 shares during the last quarter. 70.26% of the stock is owned by hedge funds and other institutional investors.

CocaCola Company Profile

The Coca-Cola Company NYSE: KO is a global beverage company headquartered in Atlanta, Georgia. Its portfolio includes sparkling soft drinks, water, sports drinks, coffee, tea, juice, dairy and plant-based beverages, and other ready-to-drink products. The company's best-known brands include Coca-Cola, Diet Coke, Coca-Cola Zero Sugar, Sprite, Fanta, Dasani, Powerade, Minute Maid, fairlife, and Georgia Coffee.

Founded in 1886, the company develops, owns, licenses, markets, and distributes beverage brands through a network of bottling partners, distributors, retailers, and food-service operators.

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