Monster Beverage Corporation $MNST Shares Sold by Rakuten Investment Management Inc.

Key Points

• Rakuten Investment Management cut its Monster Beverage stake by 85.3% in the fourth quarter, selling 852,012 shares and leaving it with 147,369 shares valued at about $11.44 million.
• Monster Beverage reported strong quarterly results, with earnings of $0.58 per share versus $0.53 expected and revenue of $2.32 billion versus $2.16 billion estimated, while revenue rose 22.6% year over year.
• The company’s board authorized a $500 million share repurchase program, and analysts remain broadly positive with a consensus rating of “Moderate Buy” and an average price target of $89.35.

Rakuten Investment Management Inc. trimmed its holdings in Monster Beverage Corporation (NASDAQ:MNST - Free Report) by 85.3% in the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 147,369 shares of the company's stock after selling 852,012 shares during the period. Rakuten Investment Management Inc.'s holdings in Monster Beverage were worth $11,440,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds and other institutional investors have also recently bought and sold shares of the company. Capital Advisory Group Advisory Services LLC increased its position in Monster Beverage by 2.8% during the fourth quarter. Capital Advisory Group Advisory Services LLC now owns 4,841 shares of the company's stock worth $371,000 after purchasing an additional 133 shares during the last quarter. Williams Jones Wealth Management LLC. increased its position in Monster Beverage by 2.2% during the fourth quarter. Williams Jones Wealth Management LLC. now owns 6,134 shares of the company's stock worth $470,000 after purchasing an additional 134 shares during the last quarter. D.A. Davidson & CO. increased its position in Monster Beverage by 3.6% during the fourth quarter. D.A. Davidson & CO. now owns 4,071 shares of the company's stock worth $312,000 after purchasing an additional 141 shares during the last quarter. Earned Wealth Advisors LLC increased its position in Monster Beverage by 3.8% during the fourth quarter. Earned Wealth Advisors LLC now owns 4,171 shares of the company's stock worth $320,000 after purchasing an additional 151 shares during the last quarter. Finally, Sage Mountain Advisors LLC increased its position in Monster Beverage by 1.4% during the fourth quarter. Sage Mountain Advisors LLC now owns 11,123 shares of the company's stock worth $853,000 after purchasing an additional 154 shares during the last quarter. 72.36% of the stock is currently owned by institutional investors and hedge funds.

Monster Beverage Price Performance

Shares of MNST stock opened at $92.95 on Wednesday. The firm has a market cap of $90.91 billion, a PE ratio of 44.90, a price-to-earnings-growth ratio of 3.08 and a beta of 0.54. The company has a 50-day moving average of $82.98 and a two-hundred day moving average of $79.56. Monster Beverage Corporation has a 1-year low of $58.09 and a 1-year high of $93.92.

Monster Beverage (NASDAQ:MNST - Get Free Report) last announced its earnings results on Friday, May 8th. The company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.53 by $0.05. The company had revenue of $2.32 billion during the quarter, compared to analyst estimates of $2.16 billion. Monster Beverage had a net margin of 23.11% and a return on equity of 26.86%. Monster Beverage's revenue was up 22.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.47 earnings per share. Sell-side analysts anticipate that Monster Beverage Corporation will post 2.31 EPS for the current fiscal year.

Monster Beverage declared that its Board of Directors has authorized a share repurchase plan on Friday, May 15th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to buy up to 0.6% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

MNST has been the subject of several recent analyst reports. UBS Group restated a "neutral" rating and set a $84.00 price objective (up from $80.00) on shares of Monster Beverage in a research report on Friday, May 8th. Jefferies Financial Group set a $100.00 price objective on shares of Monster Beverage in a research report on Wednesday, March 11th. Morgan Stanley set a $103.00 price objective on shares of Monster Beverage and gave the stock an "overweight" rating in a research report on Monday, June 1st. Argus raised their price objective on shares of Monster Beverage from $95.00 to $100.00 and gave the stock a "buy" rating in a research report on Tuesday, March 3rd. Finally, JPMorgan Chase & Co. lowered their target price on shares of Monster Beverage from $81.00 to $78.00 and set a "neutral" rating for the company in a research note on Monday, May 4th. Fourteen investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $89.35.

Insider Buying and Selling at Monster Beverage

In related news, Director Mark J. Hall sold 54,000 shares of Monster Beverage stock in a transaction that occurred on Thursday, May 14th. The shares were sold at an average price of $85.81, for a total value of $4,633,740.00. Following the completion of the transaction, the director owned 299,246 shares in the company, valued at approximately $25,678,299.26. The trade was a 15.29% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CFO Thomas J. Kelly sold 7,000 shares of Monster Beverage stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $87.81, for a total transaction of $614,670.00. Following the completion of the transaction, the chief financial officer owned 62,553 shares of the company's stock, valued at $5,492,778.93. This trade represents a 10.06% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 178,700 shares of company stock worth $15,457,562. 8.10% of the stock is currently owned by company insiders.

Monster Beverage Profile

Monster Beverage Corporation NASDAQ: MNST is an American beverage company best known for its Monster Energy brand of energy drinks. The company's product portfolio centers on carbonated energy beverages and a range of complementary ready-to-drink offerings, including energy coffees, hydration beverages and other flavored functional drinks. Monster markets multiple sub-brands and flavor variants to address different consumer segments and consumption occasions.

Originally organized around the Hansen's Natural line of juices and sodas, the company pivoted toward the energy drink category and formally adopted the Monster Beverage name in the early 2010s to reflect its strategic focus.

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