CocaCola Company (The) $KO Stock Position Lifted by TD Waterhouse Canada Inc.

Key Points

• Institutional ownership increased: TD Waterhouse Canada raised its Coca-Cola position by 73.7% in the third quarter, bringing its holdings to 696,955 shares valued at approximately $60.1 million. Institutional investors collectively own 70.26% of KO.
• Solid operating results and dividend support: Coca-Cola reported quarterly EPS of $0.97 and revenue of $13.37 billion, beating analyst estimates, while revenue grew 6.2% year over year. The company declared a quarterly dividend of $0.53 per share, equivalent to a 2.3% annualized yield.
• Positive outlook tempered by valuation: Analysts maintain a “Moderate Buy” consensus with an average price target of $96.27, supported by strong brand momentum and the planned KFC switch to Coca-Cola beverages. However, KO trades at roughly 28 times earnings, and recent insider selling and questions about whether Zero Sugar growth is incremental create potential concerns.

TD Waterhouse Canada Inc. increased its position in CocaCola Company (The) (NYSE:KO - Free Report) by 73.7% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 696,955 shares of the company's stock after buying an additional 295,760 shares during the quarter. TD Waterhouse Canada Inc.'s holdings in CocaCola were worth $60,063,000 as of its most recent filing with the Securities & Exchange Commission.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Bank of America Corp DE grew its holdings in CocaCola by 4.4% in the 2nd quarter. Bank of America Corp DE now owns 45,958,636 shares of the company's stock worth $3,735,058,000 after acquiring an additional 1,939,673 shares during 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% in 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 valued at $2,954,523,000 after acquiring an additional 162,097 shares during the period. Wellington Management Group LLP raised its stake 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 valued at $2,361,198,000 after acquiring an additional 2,439,026 shares during the last quarter. Invesco Ltd. raised its stake in shares of CocaCola by 6.7% during the fourth quarter. Invesco Ltd. now owns 28,520,214 shares of the company's stock valued at $1,993,848,000 after acquiring an additional 1,798,371 shares during the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in shares of CocaCola by 1.3% during the first quarter. Dimensional Fund Advisors LP now owns 18,822,295 shares of the company's stock valued at $1,431,495,000 after acquiring an additional 235,785 shares during the last quarter. 70.26% of the stock is currently owned by institutional investors.

CocaCola Trading Up 1.9%

Shares of KO traded up $1.72 during trading hours on Friday, reaching $93.72. 23,066,385 shares of the company traded hands, compared to its average volume of 16,267,122. The company's fifty day moving average price is $88.47 and its two-hundred day moving average price is $83.34. The company has a market capitalization of $403.23 billion, a price-to-earnings ratio of 28.14, a price-to-earnings-growth ratio of 3.58 and a beta of 0.32. The company has a quick ratio of 1.12, a current ratio of 1.30 and a debt-to-equity ratio of 0.97. CocaCola Company has a 12 month low of $67.27 and a 12 month high of $94.10.

CocaCola (NYSE:KO - Get Free Report) last released 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 net margin of 28.56% and a return on equity of 39.38%. The company had revenue of $13.37 billion during the quarter, compared to the consensus estimate of $13.17 billion. During the same period in the prior year, the firm earned $0.87 earnings per share. CocaCola's revenue was up 6.2% on a year-over-year basis. CocaCola has set its FY 2026 guidance at 3.270-3.300 EPS. Equities research analysts predict that CocaCola Company will post 3.30 earnings per share for the current fiscal year.

CocaCola Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be issued a dividend of $0.53 per share. The ex-dividend date is Tuesday, December 1st. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.3%. CocaCola's dividend payout ratio is 63.66%.

Analyst Ratings Changes

Several analysts recently issued reports on KO shares. DZ Bank reissued a "buy" rating on shares of CocaCola in a research note on Wednesday, July 29th. Evercore reaffirmed an "outperform" rating and set a $100.00 price target (up from $88.00) on shares of CocaCola in a research report on Tuesday, July 28th. HSBC increased their price objective on CocaCola from $90.00 to $98.00 and gave the stock a "buy" rating in a report on Wednesday, July 29th. CICC Research lifted their price objective on CocaCola from $85.00 to $95.00 and gave the stock an "outperform" rating in a research report on Thursday, July 30th. Finally, Rothschild & Co Redburn boosted their target price on CocaCola from $86.00 to $92.00 and gave the company a "buy" rating in a research note on Wednesday, July 29th. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $96.27.

Key Headlines Impacting CocaCola

Here are the key news stories impacting CocaCola this week:

• Positive Sentiment: KFC switches from Pepsi to Coca-Cola: KFC will replace PepsiCo beverages with Coca-Cola products at its U.S. restaurants next year, ending a relationship that began in 1986. The high-profile contract should provide incremental fountain volume, strengthen Coca-Cola’s North American position and pressure PepsiCo. KFC to switch to Coca-Cola beverages in U.S. restaurants
• Positive Sentiment: Analyst support: UBS reaffirmed its Buy rating, while Jefferies maintained a Buy rating and Barclays reportedly raised its price target. Analysts view the KFC win as evidence of improving competitive momentum in North America. Jefferies maintains Coca-Cola Buy rating
• Positive Sentiment: Rotation into defensive stocks: Coca-Cola, Visa and Mastercard reached records as investors rotated away from chip and artificial-intelligence stocks. KO’s low-beta profile and dependable cash flows make it a potential beneficiary if technology-market volatility increases. Coca-Cola, Visa and Mastercard hit records
• Positive Sentiment: Strong brand and product execution: Coca-Cola Zero Sugar volume grew 16% in the second quarter, outpacing 5% growth for the broader Coca-Cola trademark. Localized pricing, marketing and product strategies are also supporting global consumer engagement. How Coca-Cola is using local execution to fuel global growth
• Neutral Sentiment: Dividend remains a support: Coca-Cola declared a quarterly dividend of $0.53 per share, or $2.12 annualized, representing an indicated yield of about 2.3%. The payout reinforces KO’s income appeal, although the stock’s elevated valuation limits the margin of safety.
• Negative Sentiment: Valuation and growth questions: At roughly 28 times earnings, investors are paying a premium for a mature company. The Zero Sugar gains may partly reflect consumers switching among Coca-Cola products rather than creating entirely new demand, which could limit the long-term earnings benefit. Is Zero Sugar creating new demand or shifting existing sales?

Insider Transactions at CocaCola

In related news, Chairman James Quincey sold 381,140 shares of CocaCola stock in a transaction that occurred on Tuesday, July 28th. The stock was sold at an average price of $90.04, for a total transaction of $34,317,845.60. Following the sale, the chairman directly owned 122,833 shares in the company, valued at $11,059,883.32. The trade was a 75.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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. Also, EVP Nancy Quan sold 50,000 shares of CocaCola stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $90.39, for a total value of $4,519,500.00. Following the sale, the executive vice president owned 223,330 shares in the company, valued at $20,186,798.70. This represents a 18.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last three months, insiders have sold 926,620 shares of company stock worth $83,075,714. 0.90% of the stock is owned by insiders.

CocaCola 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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