Molson Coors Beverage (NYSE:TAP) Shares Up 4.8% - What's Next?

Key Points

• Molson Coors Beverage shares rose 4.8% during Tuesday trading, reaching an intraday high of $40.74, though volume was well below average.
• Recent analyst sentiment has been mixed-to-negative, with several firms cutting ratings or price targets; the stock currently carries a consensus “Hold” rating and an average target price of $44.88.
• The company beat its latest earnings estimate, reporting $0.62 EPS vs. $0.36 expected, and also pays a quarterly dividend of $0.48, equal to a 4.9% annual yield.

Molson Coors Beverage Company (NYSE:TAP - Get Free Report) shares traded up 4.8% during mid-day trading on Tuesday . The stock traded as high as $40.74 and last traded at $40.7410. Approximately 675,823 shares traded hands during mid-day trading, a decline of 79% from the average daily volume of 3,170,255 shares. The stock had previously closed at $38.86.

Analyst Upgrades and Downgrades

TAP has been the topic of a number of analyst reports. Wall Street Zen cut Molson Coors Beverage from a "buy" rating to a "hold" rating in a research report on Sunday, May 17th. UBS Group cut their price target on shares of Molson Coors Beverage from $50.00 to $45.00 and set a "neutral" rating for the company in a report on Tuesday, April 7th. Barclays reduced their price objective on shares of Molson Coors Beverage from $43.00 to $41.00 and set an "underweight" rating for the company in a research report on Friday, May 1st. Sanford C. Bernstein dropped their target price on shares of Molson Coors Beverage from $74.00 to $45.00 and set a "market perform" rating on the stock in a research report on Tuesday, May 26th. Finally, Wells Fargo & Company cut their target price on shares of Molson Coors Beverage from $45.00 to $43.00 and set an "equal weight" rating for the company in a research note on Monday, May 18th. Four investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and four have issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $44.88.

Molson Coors Beverage Price Performance

The company has a 50-day moving average of $40.82 and a 200 day moving average of $44.72. The company has a quick ratio of 0.38, a current ratio of 0.54 and a debt-to-equity ratio of 0.38. The stock has a market capitalization of $7.42 billion, a PE ratio of -3.71 and a beta of 0.42.

Molson Coors Beverage (NYSE:TAP - Get Free Report) last announced its earnings results on Friday, May 1st. The company reported $0.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.36 by $0.26. The company had revenue of $2.35 billion for the quarter, compared to analysts' expectations of $2.33 billion. Molson Coors Beverage had a negative net margin of 16.14% and a positive return on equity of 9.79%. The firm's quarterly revenue was up 2.0% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.50 EPS. Sell-side analysts predict that Molson Coors Beverage Company will post 4.8 EPS for the current year.

Molson Coors Beverage Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 12th. Shareholders of record on Friday, May 29th were issued a $0.48 dividend. The ex-dividend date was Friday, May 29th. This represents a $1.92 dividend on an annualized basis and a yield of 4.9%. Molson Coors Beverage's dividend payout ratio is presently -18.05%.

Insider Buying and Selling at Molson Coors Beverage

In other news, Director Geoffrey E. Molson sold 1,245 shares of the company's stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $42.50, for a total value of $52,912.50. Following the completion of the sale, the director directly owned 9,871 shares in the company, valued at $419,517.50. This represents a 11.20% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 2.27% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Molson Coors Beverage

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. GoalVest Advisory LLC purchased a new position in shares of Molson Coors Beverage during the 4th quarter worth $25,000. SBI Securities Co. Ltd. increased its position in Molson Coors Beverage by 84.1% during the fourth quarter. SBI Securities Co. Ltd. now owns 534 shares of the company's stock worth $25,000 after purchasing an additional 244 shares during the last quarter. Basepoint Wealth LLC purchased a new position in Molson Coors Beverage during the fourth quarter worth about $26,000. Smartleaf Asset Management LLC raised its stake in Molson Coors Beverage by 64.2% during the second quarter. Smartleaf Asset Management LLC now owns 565 shares of the company's stock worth $27,000 after purchasing an additional 221 shares during the period. Finally, Larson Financial Group LLC boosted its holdings in Molson Coors Beverage by 551.1% in the 4th quarter. Larson Financial Group LLC now owns 612 shares of the company's stock valued at $29,000 after purchasing an additional 518 shares during the last quarter. Institutional investors and hedge funds own 78.46% of the company's stock.

Molson Coors Beverage Company Profile

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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