Molson Coors Brewing Co. (TAP) Upgraded by Zacks Investment Research to Strong-Buy
Zacks Investment Research upgraded shares of Molson Coors Brewing Co. (NYSE:TAP) from a hold rating to a strong-buy rating in a research report report published on Tuesday morning. The brokerage currently has $125.00 price objective on the stock.
According to Zacks, “Estimates have been rising as Molson Coors is close to acquiring full stake in MillerCoors as the merger deal between Ab InBev and SABMiller moves ahead with shareholders’ approval. The deal is encouraging after the company posted weaker-than-expected earnings in the second quarter of 2016. We note the company is facing macro-economic headwinds ahead. Molson Coors’ profits have been impacted by unfavorable foreign currency movements and lower volumes owing to weak consumer demand. The termination of business contracts in the U.K. and Canada has also hurt sales. Nevertheless, we believe that the company’s cost-savings initiatives and increased marketing investments have the potential to drive volumes.”
Other equities research analysts have also issued research reports about the company. Citigroup Inc. boosted their price target on Molson Coors Brewing from $115.00 to $120.00 and gave the stock a buy rating in a research note on Monday, September 19th. Susquehanna reissued a buy rating on shares of Molson Coors Brewing in a research note on Monday, August 8th. Stifel Nicolaus boosted their price target on Molson Coors Brewing from $136.00 to $139.00 and gave the stock a buy rating in a research note on Wednesday, August 3rd. Finally, Bryan, Garnier & Co raised Molson Coors Brewing to a buy rating in a research note on Friday, July 8th. One research analyst has rated the stock with a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company’s stock. The stock has an average rating of Buy and a consensus target price of $118.88.
Molson Coors Brewing (NYSE:TAP) opened at 108.29 on Tuesday. Molson Coors Brewing has a one year low of $78.17 and a one year high of $111.24. The firm has a market cap of $23.26 billion, a PE ratio of 56.14 and a beta of 0.88. The firm’s 50 day moving average price is $103.61 and its 200-day moving average price is $99.83.
Molson Coors Brewing (NYSE:TAP) last announced its quarterly earnings results on Tuesday, August 2nd. The company reported $1.11 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $1.11. The business had revenue of $986.20 million for the quarter, compared to analyst estimates of $970.25 million. Molson Coors Brewing had a return on equity of 8.21% and a net margin of 7.54%. The company’s quarterly revenue was down 1.9% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.41 EPS. Equities analysts predict that Molson Coors Brewing will post $3.50 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Stockholders of record on Wednesday, August 31st were issued a dividend of $0.41 per share. The ex-dividend date was Monday, August 29th. This represents a $1.64 dividend on an annualized basis and a dividend yield of 1.52%. Molson Coors Brewing’s payout ratio is 88.65%.
In related news, CEO Krishnan Anand sold 13,000 shares of the company’s stock in a transaction on Wednesday, September 7th. The shares were sold at an average price of $107.00, for a total transaction of $1,391,000.00. Following the completion of the sale, the chief executive officer now directly owns 29,676 shares of the company’s stock, valued at approximately $3,175,332. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Andrew Thomas Molson sold 1,173 shares of the company’s stock in a transaction on Wednesday, August 3rd. The stock was sold at an average price of $99.49, for a total transaction of $116,701.77. Following the sale, the director now directly owns 6,834 shares of the company’s stock, valued at $679,914.66. The disclosure for this sale can be found here. Insiders own 2.53% of the company’s stock.
A number of hedge funds have recently made changes to their positions in the company. Commonwealth Equity Services Inc boosted its stake in shares of Molson Coors Brewing by 7.9% in the first quarter. Commonwealth Equity Services Inc now owns 9,116 shares of the company’s stock worth $877,000 after buying an additional 669 shares during the period. Virginia Retirement System purchased a new position in Molson Coors Brewing during the first quarter worth $290,000. Ngam Advisors L.P. purchased a new position in Molson Coors Brewing during the first quarter worth $1,129,000. Prudential Financial Inc. boosted its position in Molson Coors Brewing by 14.0% in the first quarter. Prudential Financial Inc. now owns 224,578 shares of the company’s stock worth $21,599,000 after buying an additional 27,660 shares during the last quarter. Finally, BlackRock Inc. boosted its position in Molson Coors Brewing by 19.6% in the first quarter. BlackRock Inc. now owns 219,083 shares of the company’s stock worth $21,072,000 after buying an additional 35,895 shares during the last quarter. 77.65% of the stock is owned by hedge funds and other institutional investors.
About Molson Coors Brewing
Molson Coors Brewing Company (MCBC) is a holding company that operates as a brewer. The Company has a portfolio of brands, including Carling, Coors Light, Molson Canadian and Staropramen, as well as craft and specialty beers, such as Blue Moon, Creemore Springs, Cobra and Doom Bar. The Company operates through four segments: Molson Coors Canada (MCC or Canada segment); MillerCoors LLC (MillerCoors or U.S.
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