Monster Beverage (NASDAQ:MNST) Sets New 1-Year High - Should You Buy?

Key Points

• Monster Beverage shares hit a new 52-week high on Tuesday, trading as high as $99.15 before easing slightly. The move came despite the stock already having strong momentum above its 50-day and 200-day moving averages.
• The company recently posted better-than-expected quarterly results, with earnings of $0.58 per share versus $0.53 expected and revenue of $2.32 billion, up 22.6% year over year. Analysts still view the stock as a Moderate Buy, though the average price target is below the current share price.
• Monster Beverage also announced a $500 million share buyback, signaling management confidence in the stock’s value. However, recent insider selling by the CFO and a director may temper enthusiasm for some investors.

Monster Beverage Corporation (NASDAQ:MNST - Get Free Report)'s share price hit a new 52-week high during trading on Tuesday . The stock traded as high as $99.15 and last traded at $98.6510, with a volume of 754579 shares changing hands. The stock had previously closed at $97.37.

Analyst Ratings Changes

MNST has been the subject of a number of recent research reports. Stifel Nicolaus dropped their target price on Monster Beverage from $92.00 to $90.00 and set a "buy" rating for the company in a research report on Thursday, April 23rd. Deutsche Bank Aktiengesellschaft increased their price target on shares of Monster Beverage from $88.00 to $94.00 and gave the company a "buy" rating in a research report on Friday, May 8th. Bank of America lowered their price objective on shares of Monster Beverage from $100.00 to $96.00 and set a "buy" rating for the company in a report on Friday, April 10th. Wells Fargo & Company upped their price objective on shares of Monster Beverage from $87.00 to $97.00 and gave the company an "overweight" rating in a research note on Monday, May 18th. Finally, JPMorgan Chase & Co. reduced their target price on shares of Monster Beverage from $81.00 to $78.00 and set a "neutral" rating on the stock in a report on Monday, May 4th. Fourteen investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $89.35.

Monster Beverage Trading Down 1.2%

The stock has a 50 day simple moving average of $88.09 and a 200 day simple moving average of $81.46. The firm has a market capitalization of $94.13 billion, a PE ratio of 46.49, a PEG ratio of 3.21 and a beta of 0.53.

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

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

Insider Activity

In other Monster Beverage 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 position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Mark J. Hall sold 54,000 shares of the business's stock in a transaction dated Thursday, May 14th. The shares were sold at an average price of $85.81, for a total transaction of $4,633,740.00. Following the completion of the transaction, the director owned 299,246 shares in the company, valued at $25,678,299.26. The trade was a 15.29% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 178,700 shares of company stock worth $15,457,562. 8.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Harbor Investment Advisory LLC grew its stake in Monster Beverage by 136.7% in the fourth quarter. Harbor Investment Advisory LLC now owns 355 shares of the company's stock worth $27,000 after purchasing an additional 205 shares during the period. MV Capital Management Inc. purchased a new position in Monster Beverage during the fourth quarter valued at $30,000. Newbridge Financial Services Group Inc. boosted its holdings in shares of Monster Beverage by 1,338.7% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 446 shares of the company's stock valued at $28,000 after buying an additional 415 shares in the last quarter. Kemnay Advisory Services Inc. bought a new stake in shares of Monster Beverage during the 4th quarter valued at $35,000. Finally, Miller Capital Partners Inc. purchased a new stake in shares of Monster Beverage in the 4th quarter worth about $36,000. Hedge funds and other institutional investors own 72.36% of the company's stock.

About Monster Beverage

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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