Monster Beverage (NASDAQ:MNST) Reaches New 52-Week High Following Strong Earnings

Key Points

• Monster Beverage reached a new 52-week high of $65.70 following a strong earnings report, with revenue of $2.11 billion surpassing analysts' expectations of $2.08 billion.
• The company reported earnings per share of $0.52, exceeding the consensus estimate by $0.04, and showed a year-over-year revenue increase of 11.1%.
• Despite positive earnings, analysts have mixed ratings on the stock, with eight hold ratings, two sell ratings, and fourteen buy ratings reflected in a consensus price target of $63.35.

Shares of Monster Beverage Corporation (NASDAQ:MNST - Get Free Report) reached a new 52-week high during trading on Friday following a better than expected earnings announcement. The company traded as high as $65.70 and last traded at $65.34, with a volume of 47554 shares changing hands. The stock had previously closed at $60.80.

The company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.04. The company had revenue of $2.11 billion for the quarter, compared to analysts' expectations of $2.08 billion. Monster Beverage had a net margin of 20.27% and a return on equity of 27.46%. Monster Beverage's revenue for the quarter was up 11.1% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.41 earnings per share.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on MNST shares. Rothschild & Co Redburn cut shares of Monster Beverage from a "buy" rating to a "neutral" rating and set a $60.00 price objective for the company. in a research report on Wednesday, July 9th. Wells Fargo & Company set a $73.00 target price on Monster Beverage and gave the stock an "overweight" rating in a report on Friday. Roth Mkm raised their price objective on shares of Monster Beverage from $50.00 to $56.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 14th. Jefferies Financial Group boosted their price target on shares of Monster Beverage from $68.00 to $71.00 and gave the company a "buy" rating in a research note on Wednesday, April 16th. Finally, Roth Capital boosted their target price on shares of Monster Beverage from $50.00 to $56.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 14th. Two research analysts have rated the stock with a sell rating, eight have assigned a hold rating and fourteen have given a buy rating to the company's stock. According to data from MarketBeat.com, Monster Beverage currently has an average rating of "Moderate Buy" and a consensus price target of $63.35.

Insider Activity at Monster Beverage

In other news, CFO Thomas J. Kelly sold 27,000 shares of the business's stock in a transaction on Thursday, May 29th. The shares were sold at an average price of $63.40, for a total value of $1,711,800.00. Following the transaction, the chief financial officer owned 69,273 shares of the company's stock, valued at approximately $4,391,908.20. The trade was a 28.05% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Emelie Tirre sold 8,796 shares of Monster Beverage stock in a transaction on Friday, May 16th. The shares were sold at an average price of $62.46, for a total transaction of $549,398.16. Following the completion of the sale, the insider owned 89,501 shares in the company, valued at approximately $5,590,232.46. This represents a 8.95% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 8.30% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Access Investment Management LLC purchased a new position in Monster Beverage during the second quarter worth $25,000. Salomon & Ludwin LLC purchased a new position in Monster Beverage in the 2nd quarter worth about $28,000. Wayfinding Financial LLC purchased a new stake in Monster Beverage in the 1st quarter valued at about $29,000. Golden State Wealth Management LLC increased its position in shares of Monster Beverage by 647.3% during the second quarter. Golden State Wealth Management LLC now owns 553 shares of the company's stock worth $35,000 after acquiring an additional 479 shares during the period. Finally, Coppell Advisory Solutions LLC raised its stake in shares of Monster Beverage by 259.2% during the fourth quarter. Coppell Advisory Solutions LLC now owns 686 shares of the company's stock valued at $36,000 after acquiring an additional 495 shares in the last quarter. Hedge funds and other institutional investors own 72.36% of the company's stock.

Monster Beverage Stock Performance

The company has a quick ratio of 2.78, a current ratio of 3.37 and a debt-to-equity ratio of 0.03. The company has a market cap of $64.06 billion, a P/E ratio of 43.21, a PEG ratio of 2.17 and a beta of 0.55. The firm has a 50 day moving average of $61.53 and a 200-day moving average of $57.88.

Monster Beverage Company Profile

Monster Beverage Corporation, through its subsidiaries, engages in development, marketing, sale, and distribution of energy drink beverages and concentrates in the United States and internationally. The company operates through three segments: Monster Energy Drinks, Strategic Brands, Alcohol Brands, and Other.

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