Molson Coors Beverage (NYSE:TAP) Hits New 1-Year Low - Here's Why

Key Points

• Molson Coors Beverage (NYSE:TAP) fell to a new 52-week low, trading as low as $40.56 amid recent weakness in the stock.
• Analysts remain cautious overall: the stock has a consensus Hold rating with a consensus target price of $45.29, and several firms recently trimmed their price targets.
• The company recently beat quarterly EPS expectations and raised a 4.7% dividend yield, but the shares continue to trade below both their 50-day and 200-day moving averages.

Shares of Molson Coors Beverage Company (NYSE:TAP - Get Free Report) hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $40.56 and last traded at $40.9370, with a volume of 661775 shares changing hands. The stock had previously closed at $41.87.

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on the stock. JPMorgan Chase & Co. dropped their target price on shares of Molson Coors Beverage from $45.00 to $43.00 and set a "neutral" rating on the stock in a report on Monday, April 27th. The Goldman Sachs Group increased their price target on shares of Molson Coors Beverage from $48.00 to $50.00 in a report on Friday, May 1st. Needham & Company LLC lowered their price target on shares of Molson Coors Beverage from $52.00 to $50.00 and set a "buy" rating on the stock in a report on Friday, May 1st. Barclays lowered their price target on shares of Molson Coors Beverage from $43.00 to $41.00 and set an "underweight" rating on the stock in a report on Friday, May 1st. Finally, Wall Street Zen cut shares of Molson Coors Beverage from a "buy" rating to a "hold" rating in a report on Sunday, May 17th. Four investment analysts have rated the stock with a Buy rating, eleven have given a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $45.29.

Molson Coors Beverage Price Performance

The company's fifty day moving average price is $42.77 and its 200 day moving average price is $46.03. The company has a market capitalization of $7.69 billion, a P/E ratio of -3.86 and a beta of 0.44. The company has a quick ratio of 0.38, a current ratio of 0.54 and a debt-to-equity ratio of 0.38.

Molson Coors Beverage (NYSE:TAP - Get Free Report) last announced its earnings results on Friday, May 1st. The company reported $0.62 EPS for the quarter, topping the consensus estimate of $0.36 by $0.26. Molson Coors Beverage had a negative net margin of 16.14% and a positive return on equity of 9.79%. The company had revenue of $2.35 billion for the quarter, compared to analysts' expectations of $2.33 billion. During the same period last year, the firm earned $0.50 earnings per share. The business's revenue for the quarter was up 2.0% on a year-over-year basis. As a group, sell-side analysts forecast that Molson Coors Beverage Company will post 4.74 EPS for the current year.

Molson Coors Beverage Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, June 12th. Stockholders of record on Friday, May 29th will be issued a dividend of $0.48 per share. The ex-dividend date of this dividend is Friday, May 29th. This represents a $1.92 annualized dividend and a dividend yield of 4.7%. Molson Coors Beverage's dividend payout ratio (DPR) is currently -18.05%.

Insider Activity at Molson Coors Beverage

In other Molson Coors Beverage news, Director Andrew Thomas Molson bought 2,000 shares of the stock in a transaction dated Monday, March 9th. The shares were bought at an average cost of $46.67 per share, with a total value of $93,340.00. Following the completion of the acquisition, the director owned 24,654 shares of the company's stock, valued at $1,150,602.18. This trade represents a 8.83% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Geoffrey E. Molson sold 1,245 shares of the stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $42.50, for a total transaction of $52,912.50. Following the sale, the director owned 9,871 shares in the company, valued at $419,517.50. This represents a 11.20% decrease in their position. The disclosure for this sale is available in the SEC filing. 2.27% of the stock is currently owned by company insiders.

Institutional Trading of Molson Coors Beverage

Several large investors have recently made changes to their positions in the company. Bank of America Corp DE boosted its position in shares of Molson Coors Beverage by 36.5% during the 1st quarter. Bank of America Corp DE now owns 1,187,921 shares of the company's stock worth $51,152,000 after acquiring an additional 317,387 shares in the last quarter. Kentucky Retirement Systems boosted its position in shares of Molson Coors Beverage by 24.0% during the 1st quarter. Kentucky Retirement Systems now owns 13,054 shares of the company's stock worth $562,000 after acquiring an additional 2,523 shares in the last quarter. Janus Henderson Group PLC boosted its position in shares of Molson Coors Beverage by 3.2% during the 1st quarter. Janus Henderson Group PLC now owns 123,095 shares of the company's stock worth $5,301,000 after acquiring an additional 3,848 shares in the last quarter. Arkadios Wealth Advisors boosted its position in shares of Molson Coors Beverage by 29.4% during the 1st quarter. Arkadios Wealth Advisors now owns 14,009 shares of the company's stock worth $603,000 after acquiring an additional 3,181 shares in the last quarter. Finally, South Dakota Investment Council boosted its position in shares of Molson Coors Beverage by 43.5% during the 1st quarter. South Dakota Investment Council now owns 125,978 shares of the company's stock worth $5,425,000 after acquiring an additional 38,200 shares in the last quarter. Institutional investors and hedge funds own 78.46% of the company's stock.

About Molson Coors Beverage

Molson Coors Beverage Company is a leading multinational brewing and beverage enterprise formed through the 2005 merger of Canada's Molson and the United States' Coors. The company develops, markets and distributes an array of alcoholic and non-alcoholic beverages, focusing primarily on beer and ready-to-drink products. Its portfolio spans flagship brands such as Coors Light, Molson Canadian and Miller Lite, alongside craft-style offerings like Blue Moon and global imports including Carling and Staropramen.

In addition to its core beer business, Molson Coors has expanded into adjacent categories to capture evolving consumer tastes.

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