Monster Beverage (NASDAQ:MNST) Stock Passes Above 200 Day Moving Average - What's Next?

Key Points

• Monster Beverage shares moved above their 200-day moving average, reaching $43.70 before last trading at $43.15. The stock remains below its 50-day moving average of $47.21.
• Analysts maintain a generally positive outlook, with a consensus rating of “Moderate Buy” and an average price target of $50.33; 13 analysts rate the stock a Buy and nine rate it a Hold.
• The company reported stronger-than-expected quarterly results, including $0.60 in EPS and $2.50 billion in revenue, up 20.2% year over year. Monster also authorized a $500 million stock buyback, while institutional investors own 72.36% of its shares.

Monster Beverage Corporation (NASDAQ:MNST - Get Free Report)'s stock price crossed above its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $43.25 and traded as high as $43.70. Monster Beverage shares last traded at $43.15, with a volume of 8,539,549 shares changing hands.

Wall Street Analysts Forecast Growth

MNST has been the subject of a number of recent analyst reports. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $48.50 price target (down from $97.00) on shares of Monster Beverage in a research report on Wednesday, August 5th. Evercore lifted their price objective on Monster Beverage from $47.50 to $52.50 and gave the stock an "outperform" rating in a research report on Friday, August 7th. Weiss Ratings cut Monster Beverage from a "buy (b)" rating to a "buy (b-)" rating in a research note on Friday, August 21st. Sanford C. Bernstein initiated coverage on Monster Beverage in a report on Friday, June 12th. They set a "market perform" rating and a $47.50 target price for the company. Finally, Piper Sandler raised their price target on Monster Beverage from $47.00 to $50.50 and gave the stock an "overweight" rating in a research note on Friday, August 7th. Thirteen investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $50.33.

Monster Beverage Stock Down 1.5%

The company's fifty day simple moving average is $47.21 and its 200 day simple moving average is $43.25. The firm has a market capitalization of $84.53 billion, a PE ratio of 39.95, a price-to-earnings-growth ratio of 2.86 and a beta of 0.52.

Monster Beverage (NASDAQ:MNST - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.60 earnings per share for the quarter, beating the consensus estimate of $0.58 by $0.02. Monster Beverage had a return on equity of 26.02% and a net margin of 23.08%.The business had revenue of $2.50 billion for the quarter, compared to analysts' expectations of $2.43 billion. During the same period in the previous year, the firm posted $0.26 EPS. The business's revenue was up 20.2% on a year-over-year basis. Equities research analysts forecast that Monster Beverage Corporation will post 1.11 EPS for the current year.

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

Hedge Funds Weigh In On Monster Beverage

A number of institutional investors have recently added to or reduced their stakes in the company. Johnson Financial Group Inc. purchased a new stake in shares of Monster Beverage in the 2nd quarter worth about $27,000. Jones Financial Companies Lllp bought a new position in shares of Monster Beverage in the 2nd quarter worth about $28,000. Newbridge Financial Services Group Inc. lifted its position in 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 acquiring an additional 415 shares during the period. MV Capital Management Inc. purchased a new position in Monster Beverage during the 4th quarter valued at about $30,000. Finally, Trust Co. of Vermont bought a new stake in Monster Beverage during the second quarter worth about $30,000. Institutional investors own 72.36% of the company's stock.

Monster Beverage Company Profile

Monster Beverage Corporation is a beverage company headquartered in Corona, California. It develops, markets and distributes energy drinks and other alternative beverages through a portfolio of brands that includes Monster Energy, Reign, NOS, Full Throttle, Burn and Bang Energy.

The company offers energy drinks in a variety of flavors and formulations, including products positioned for performance, fitness and everyday use. Monster also participates in the alcoholic beverage category through products marketed under the Monster Brewing Company name, including flavored malt beverages and beers.

Monster Beverage traces its roots to Hansen's, a juice and natural beverage business founded in the 1930s.

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