Monster Beverage Corporation (NASDAQ:MNST) Given Average Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts remain moderately bullish: 13 of 22 analysts rate Monster Beverage a buy and nine recommend holding, producing an average “Moderate Buy” rating and a 12-month price target of $94.65.
• Quarterly results exceeded expectations: EPS reached $0.60 versus a $0.58 consensus estimate, while revenue rose 20.2% year over year to $2.54 billion, driven by core energy-drink demand and international growth.
• Valuation is a key risk: Shares trade near their 52-week high at roughly 45.5 times earnings, while recent insider sales and the upcoming two-for-one stock split may draw investor attention; the split does not change the company’s fundamentals.

Monster Beverage Corporation (NASDAQ:MNST - Get Free Report) has been assigned an average rating of "Moderate Buy" from the twenty-two analysts that are covering the stock, Marketbeat Ratings reports. Nine analysts have rated the stock with a hold rating and thirteen have given a buy rating to the company. The average 12 month price objective among analysts that have issued a report on the stock in the last year is $94.65.

MNST has been the subject of a number of recent analyst reports. Sanford C. Bernstein assumed coverage on Monster Beverage in a report on Friday, June 12th. They set a "market perform" rating and a $95.00 price target for the company. Stifel Nicolaus increased their price target on Monster Beverage from $90.00 to $105.00 and gave the company a "buy" rating in a research note on Thursday, July 16th. Deutsche Bank Aktiengesellschaft lowered Monster Beverage from a "buy" rating to a "hold" rating and boosted their target price for the stock from $94.00 to $98.00 in a research report on Monday, July 20th. Bank of America cut their price target on shares of Monster Beverage from $100.00 to $96.00 and set a "buy" rating on the stock in a research report on Friday, April 10th. Finally, Weiss Ratings lowered shares of Monster Beverage from a "buy (b)" rating to a "buy (b-)" rating in a research note on Thursday, July 23rd.

Monster Beverage News Summary

Here are the key news stories impacting Monster Beverage this week:

• Positive Sentiment: Monster reported quarterly EPS of $0.60, exceeding consensus estimates of $0.58–$0.59 and rising from $0.52 a year earlier. Monster Beverage Surpasses Q2 Earnings and Revenue Estimates
• Positive Sentiment: Revenue increased 20.2% year over year to $2.54 billion, well above analysts’ $2.43 billion forecast, providing the primary bullish catalyst for MNST. Monster Beverage Earnings Results
• Positive Sentiment: Growth was supported by continued strength in Monster’s core energy-drink business and increasing international sales, indicating that demand is broadening beyond the U.S. market. Monster Beverage Sales Rise on International Growth
• Neutral Sentiment: Monster’s net margin was 23.11% and return on equity was 26.86%, showing strong profitability; however, investors will monitor whether margins can remain resilient as the company expands internationally.
• Neutral Sentiment: The company’s upcoming two-for-one stock split is scheduled to take effect before the market opens on August 11. The split may improve trading accessibility but does not change Monster’s underlying valuation or business fundamentals.
• Negative Sentiment: At roughly 45 times earnings and near its 52-week high, MNST shares already reflect substantial growth expectations. That rich valuation may limit upside or prompt profit-taking even after the earnings and revenue beats.

Insider Activity at Monster Beverage

In other news, CFO Thomas J. Kelly sold 7,000 shares of the stock in a transaction 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 sale, the chief financial officer owned 62,553 shares of the company's stock, valued at $5,492,778.93. This represents a 10.06% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, 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 sale, the director directly owned 299,246 shares in the company, valued at approximately $25,678,299.26. This represents a 15.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders have sold 178,700 shares of company stock valued at $15,457,562. Corporate insiders own 8.10% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Newbridge Financial Services Group Inc. boosted its holdings in shares of Monster Beverage by 1,338.7% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 446 shares of the company's stock valued at $28,000 after purchasing an additional 415 shares in the last quarter. MV Capital Management Inc. bought a new stake in shares of Monster Beverage during the fourth quarter worth about $30,000. Clearstead Trust LLC bought a new stake in Monster Beverage during the 2nd quarter worth approximately $32,000. Meeder Asset Management Inc. increased its position in Monster Beverage by 355.8% during the 1st quarter. Meeder Asset Management Inc. now owns 474 shares of the company's stock valued at $34,000 after purchasing an additional 370 shares during the period. Finally, Kemnay Advisory Services Inc. bought a new position in Monster Beverage during the 4th quarter worth approximately $35,000. 72.36% of the stock is owned by institutional investors.

Monster Beverage Stock Down 0.3%

NASDAQ:MNST opened at $94.16 on Friday. Monster Beverage has a 52 week low of $59.80 and a 52 week high of $100.34. The business's 50 day moving average is $94.29 and its two-hundred day moving average is $84.71. The company has a market cap of $92.09 billion, a PE ratio of 45.49, a P/E/G ratio of 3.07 and a beta of 0.53.

Shares of Monster Beverage are set to split on Tuesday, August 11th. The 2-1 split was announced on Wednesday, July 8th. The newly minted shares will be payable to shareholders after the closing bell on Monday, August 10th.

Monster Beverage (NASDAQ:MNST - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.60 EPS for the quarter, topping analysts' consensus estimates of $0.58 by $0.02. Monster Beverage had a return on equity of 26.86% and a net margin of 23.11%.The firm had revenue of $2.54 billion during the quarter, compared to analyst estimates of $2.43 billion. During the same period last year, the company posted $0.52 EPS. The business's quarterly revenue was up 20.2% compared to the same quarter last year. As a group, sell-side analysts expect that Monster Beverage will post 2.31 EPS for the current fiscal year.

Monster Beverage announced that its board has approved a share buyback plan on Friday, May 15th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to buy up to 0.6% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's leadership believes its shares are undervalued.

Monster Beverage Company 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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