The Coca-Cola Company (KO) can make a big difference with a little luck

The Coca-Cola Company (NYSE: KO) stock fell -0.24% on Friday to $59.26 against a previous-day closing price of $59.40. With 11.64 million shares changed hands, the volume of the stock remained lighter than its average volume of 12.48 million shares. During the session, the Beverages – Non-Alcoholic company that operates in wider Consumer Defensive sector, reached to the highest price of $59.73 whereas the lowest price it dropped to was $59.20. The 52-week range on KO shows that it touched its highest point at $67.20 and its lowest point at $52.28 during that stretch. It currently has a 1-year price target of $69.80. With its current market cap of 256.23 billion, KO has annualized dividend of $1.76 while the current yield stands at 2.97%. Beta for the stock currently stands at 0.55.

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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 KO was down-trending over the past week, with a drop of -0.45%, but this was down by -7.80% over a month. Three-month performance dropped to -4.23% while six-month performance fell -1.89%. The stock gained 9.48% in the past year, while it has gained 0.08% so far this year. A look at the trailing 12-month EPS for KO yields 2.20 with Next year EPS estimates of 2.60. For the next quarter, that number is 0.64. This implies an EPS growth rate of 25.60% for this year and 5.60% for next year. EPS is expected to grow by 5.50% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 8.50%.

Float and Shares Shorts:

At present, 4.33 billion KO shares are outstanding with a float of 4.30 billion shares on hand for trading. On Jul 14, 2022, short shares totaled 34.24 million, which was 0.79% higher than short shares on Jun 14, 2022. In addition to Mr. James Robert B. Quincey as the firm’s Chairman & CEO, Mr. Brian John Smith serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 71.13% of KO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 37.43% of KO, in contrast to 33.90% held by mutual funds. Shares owned by individuals account for 15.04%. As the largest shareholder in KO with 9.25% of the stake, Berkshire Hathaway, Inc. holds 400,000,000 shares worth 400,000,000. A second-largest stockholder of KO, The Vanguard Group, Inc., holds 342,813,617 shares, controlling over 7.93% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in KO, holding 199,523,725 shares or 4.61% stake. With a 2.67% stake in KO, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 115,479,956 shares are owned by the mutual fund manager. The Vanguard 500 Index Fund, which owns about 2.01% of KO stock, is the second-largest Mutual Fund holder. It holds 87,071,534 shares valued at 5.37 billion. Fidelity 500 Index Fund holds 0.97% of the stake in KO, owning 41,892,164 shares worth 2.59 billion.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for KO since 25 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 6 believe that the stock is worth HOLDING, 5 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With KO analysts setting a high price target of $76.00 and a low target of $63.00, the average target price over the next 12 months is $69.45. Based on these targets, KO could surge 28.25% to reach the target high and rise by 6.31% to reach the target low. Reaching the average price target will result in a growth of 17.2% 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. KO will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $2.53 being high and $2.44 being low. For KO, this leads to a yearly average estimate of $2.46. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. The Coca-Cola Company surprised analysts by $0.03 when it reported $0.70 EPS against a consensus estimate of $0.67. The surprise factor in the prior quarter was $0.06. Based on analyst estimates, the high estimate for the next quarter is $0.70 and the low estimate is $0.61. The average estimate for the next quarter is thus $0.64.

Summary of Insider Activity:

Insiders traded KO stock several times over the past three months with 1 Buys and 2 Sells. In these transactions, 983 shares were bought while 34,512 shares were sold. The number of buy transactions has increased to 38 while that of sell transactions has risen to 52 over the past year. The total number of shares bought during that period was 1,598,915 while 1,455,390 shares were sold.

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