Coca-Cola Co. (KO) Lowered to Sell at Zacks Investment Research
Coca-Cola Co. (NYSE:KO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued on Tuesday.
According to Zacks, “Coca-Cola’s increased marketing investments are supporting improved volume growth in stable markets like North America. Moreover, the accelerated re-franchising efforts should drive greater returns. Also, Coca-Cola’s new revenue platforms should drive growth over the long term. However, the top line needs to show sustained improvement. Though markets like North America, Japan and India remain strong, continued weakness in some emerging markets like China, Russia and Brazil is holding back significant sales acceleration. At the second quarter conference call, it lowered its 2016 sales outlook due to weakening demand in some large emerging/developing markets. Furthermore, weak sparkling beverage volumes as well as currency and structural headwinds over the next couple of years pose threats. Also, estimates have been moving downward lately ahead of the company's third quarter earnings release.”
A number of other research analysts have also weighed in on KO. Vetr lowered Coca-Cola from a “hold” rating to a “sell” rating and set a $44.00 price objective for the company. in a research report on Monday, June 6th. Goldman Sachs Group Inc. restated a “neutral” rating and set a $45.00 price objective (down previously from $47.00) on shares of Coca-Cola in a research report on Wednesday, June 29th. BMO Capital Markets reiterated an “outperform” rating on shares of Coca-Cola in a research report on Friday, July 15th. Susquehanna reiterated a “hold” rating on shares of Coca-Cola in a research report on Sunday, July 17th. Finally, Deutsche Bank AG reiterated a “buy” rating on shares of Coca-Cola in a research report on Sunday, July 24th. Two equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and eleven have assigned a buy rating to the company. Coca-Cola has a consensus rating of “Hold” and a consensus target price of $46.50.
Coca-Cola (NYSE:KO) opened at 42.03 on Tuesday. The company has a market cap of $181.40 billion, a price-to-earnings ratio of 24.18 and a beta of 0.59. Coca-Cola has a 52-week low of $40.75 and a 52-week high of $47.13. The firm’s 50-day moving average price is $43.06 and its 200-day moving average price is $44.58.
Coca-Cola (NYSE:KO) last issued its quarterly earnings data on Wednesday, July 27th. The company reported $0.60 earnings per share for the quarter, beating the Zacks’ consensus estimate of $0.58 by $0.02. The firm earned $11.50 billion during the quarter, compared to analyst estimates of $11.69 billion. Coca-Cola had a return on equity of 32.78% and a net margin of 17.61%. The business’s quarterly revenue was down 5.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.63 earnings per share. On average, equities analysts anticipate that Coca-Cola will post $1.91 EPS for the current year.
The company also recently declared a quarterly dividend, which was paid on Monday, October 3rd. Shareholders of record on Thursday, September 15th were issued a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 3.33%. The ex-dividend date of this dividend was Tuesday, September 13th. Coca-Cola’s dividend payout ratio is currently 80.46%.
Institutional investors have recently added to or reduced their stakes in the company. Stokes & Hubbell Capital Management LLC raised its position in Coca-Cola by 1.7% in the first quarter. Stokes & Hubbell Capital Management LLC now owns 85,234 shares of the company’s stock valued at $3,954,000 after buying an additional 1,400 shares in the last quarter. Carroll Financial Associates Inc. raised its stake in shares of Coca-Cola by 0.9% in the first quarter. Carroll Financial Associates Inc. now owns 105,610 shares of the company’s stock worth $4,899,000 after buying an additional 992 shares during the period. HHG & Company LLC raised its stake in shares of Coca-Cola by 0.6% in the first quarter. HHG & Company LLC now owns 39,723 shares of the company’s stock worth $1,843,000 after buying an additional 223 shares during the period. Kelman Lazarov Inc. bought a new stake in shares of Coca-Cola during the first quarter worth $350,000. Finally, Dividend Asset Capital LLC raised its stake in shares of Coca-Cola by 5.4% in the first quarter. Dividend Asset Capital LLC now owns 19,242 shares of the company’s stock worth $893,000 after buying an additional 989 shares during the period. 64.33% of the stock is currently owned by institutional investors and hedge funds.
Coca-Cola Company Profile
The Coca-Cola Company is a beverage company. The Company owns or licenses and markets over 500 nonalcoholic beverage brands, primarily sparkling beverages but also a range of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks.
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