Coca-Cola Shares Surge After Strong Earnings Report

On Tuesday, shares of The Coca-Cola Company (NYSE:KO) saw a significant increase before trading commenced, thanks to a stronger-than-expected earnings report. The stock, which closed at $64.55 on the previous day, opened at $67.50, demonstrating a notable gap up. As of the last trading session, Coca-Cola shares were priced at $66.93, with over 6 million shares changing hands.

The earnings report revealed that Coca-Cola achieved earnings per share (EPS) of $0.55 for the quarter, surpassing analysts' expectations of $0.51 by $0.04. The company also reported a return on equity of 44.01% and a net profit margin of 22.45%, showcasing strong financial health.

Changes in Analyst Ratings

Recent changes in analyst ratings have also influenced the stock’s performance. JPMorgan Chase & Co. adjusted its target price for Coca-Cola, lowering it from $75.00 to $70.00 but maintaining an “overweight” rating. Deutsche Bank raised its rating on Coca-Cola from “hold” to “buy,” increasing its target price from $68.00 to $70.00. Wells Fargo similarly reduced its target from $75.00 to $70.00 while retaining its “overweight” rating. TD Cowen upgraded Coca-Cola from a “hold” to a “buy” rating with a price target of $75.00. Meanwhile, Royal Bank of Canada reiterated an “outperform” rating with a target price of $69.00. Currently, of the analysts following the stock, two have issued a hold rating, sixteen have rated it a buy, and one has labeled it as a strong buy. The consensus suggests a “Moderate Buy” rating with an average target price of $72.19, according to MarketBeat.com data.

Institutional Investor Activity

Several institutional investors have recently made significant moves in Coca-Cola shares. Charles Schwab Investment Management Inc. increased its stake by 18.5% in the fourth quarter, now owning over 74 million shares valued at approximately $4.62 billion after acquiring over 11 million additional shares. FMR LLC also boosted its position by 13.7% in the third quarter and currently holds nearly 93 million shares worth around $6.68 billion. Raymond James Financial Inc. entered a new position worth approximately $500 million in the fourth quarter, while Wellington Management Group LLP raised its holdings by 14.5% during the third quarter, now possessing around 31.6 million shares valued at $2.27 billion. Notably, around 70.26% of Coca-Cola's stock is held by institutional investors and hedge funds.

Coca-Cola’s Financial Metrics

The financial metrics of Coca-Cola reflect its overall stability and growth potential. The company has a current ratio of 1.06, a quick ratio of 0.90, and a debt-to-equity ratio of 1.53. Coca-Cola boasts a market capitalization of $291.27 billion, a price-to-earnings (PE) ratio of 27.94, and a price-to-earnings-growth (PEG) ratio of 3.55, alongside a beta of 0.61. Currently, the stock's 50-day moving average price stands at $62.55, while its 200-day moving average price is at $66.31.

About Coca-Cola

The Coca-Cola Company is a globally recognized beverage corporation that manufactures, markets, and sells a diverse array of nonalcoholic drinks. Its product lineup includes sparkling soft drinks, flavored sparkling beverages, water, sports drinks, coffee, tea, juices, dairy products, plant-based drinks, and various beverage concentrates and syrups intended for soda fountain retailers, including restaurants and convenience stores.

CocaCola, Earnings, Stocks