Molson Coors Beverage Company (NYSE: TAP) stock fell -2.36% on Friday to $52.91 against a previous-day closing price of $54.19. With 2.08 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.65 million shares. During the session, the Beverages – Brewers company that operates in wider Consumer Defensive sector, reached to the highest price of $54.34 whereas the lowest price it dropped to was $52.84. The 52-week range on TAP shows that it touched its highest point at $60.12 and its lowest point at $42.46 during that stretch. It currently has a 1-year price target of $55.60. With its current market cap of 11.30 billion, TAP has annualized dividend of $1.52 while the current yield stands at 2.87%. Beta for the stock currently stands at 0.83.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of TAP was down-trending over the past week, with a drop of -10.38%, but this was down by -4.20% over a month. Three-month performance dropped to -0.62% while six-month performance rose 9.07%. The stock gained 10.18% in the past year, while it has gained 14.15% so far this year. A look at the trailing 12-month EPS for TAP yields 4.93 with Next year EPS estimates of 4.27. For the next quarter, that number is 1.19. This implies an EPS growth rate of 205.60% for this year and 9.23% for next year. EPS is expected to grow by 2.76% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -9.20%.
Float and Shares Shorts:
At present, 217.20 million TAP shares are outstanding with a float of 176.97 million shares on hand for trading. On Jul 14, 2022, short shares totaled 8.43 million, which was 3.88% higher than short shares on Jun 14, 2022. In addition to Mr. Gavin D. K. Hattersley as the firm’s Pres, CEO & Director, Ms. Tracey I. Joubert serves as its Chief Financial Officer.
Through their ownership of 89.66% of TAP’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 52.96% of TAP, in contrast to 5.21% held by mutual funds. Shares owned by individuals account for 34.83%. As the largest shareholder in TAP with 15.08% of the stake, Dodge & Cox holds 30,246,969 shares worth 30,246,969. A second-largest stockholder of TAP, The Vanguard Group, Inc., holds 20,581,100 shares, controlling over 10.26% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in TAP, holding 10,205,970 shares or 5.09% stake. With a 9.06% stake in TAP, the Dodge & Cox Stock Fund is the largest stakeholder. A total of 18,164,725 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.66% of TAP stock, is the second-largest Mutual Fund holder. It holds 5,324,278 shares valued at 290.23 million. Vanguard 500 Index Fund holds 2.08% of the stake in TAP, owning 4,168,061 shares worth 227.2 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TAP since 20 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 2 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With TAP analysts setting a high price target of $68.00 and a low target of $49.00, the average target price over the next 12 months is $56.00. Based on these targets, TAP could surge 28.52% to reach the target high and fall by -7.39% to reach the target low. Reaching the average price target will result in a growth of 5.84% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. TAP will report FY 2022 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of $4.04 being high and $3.38 being low. For TAP, this leads to a yearly average estimate of $3.88. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Molson Coors Beverage Company surprised analysts by $0.00 when it reported $1.19 EPS against a consensus estimate of $1.19. The surprise factor in the prior quarter was $0.10. Based on analyst estimates, the high estimate for the next quarter is $1.62 and the low estimate is $1.14. The average estimate for the next quarter is thus $1.40.
Summary of Insider Activity:
Insiders traded TAP stock several times over the past three months with 16 Buys and 6 Sells. In these transactions, 36,040 shares were bought while 8,219 shares were sold. The number of buy transactions has increased to 44 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 137,388 while 19,346 shares were sold.