Undoubtedly, The Coca-Cola Company (NYSE:KO) has been one of the most volatile stocks in the market in recent times, and the way it handled Thursday’s volatility suggests the stock may be poised to rise heading into short-terms. The shares accumulated 0.16 points or 0.32 percent at $49.42 with a light trade volume of 9.958 million shares. After opening the session at $49.17, the shares went as high as $49.46 and as low as $49.0025, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $212 billion and now has 4.29 billion shares outstanding. The Coca-Cola Company (KO) stock has gained 4.09 percent of market value in 21 trading days.
KO stock has a trailing 3-year beta of 0.55, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.57 a share in the trailing twelve months. The stock’s value has surged 4.37 percent year to date (YTD) against a rise of 10.63 percent in 12 month’s time. The company’s shares still trade -2.79 percent away from its 1-year high of $50.84 and 19.23 percent up from 52-week low of $41.45. The average consensus rating on the company is 2.3, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
The Coca-Cola Company (KO) will probably climb 4.98 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $64 price as 12-month high target. This represents a whopping 29.5 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $51, which represents a return potential of 3.2 percent when compared to the closing price of the stock of $49.42 on Thursday, February 07. The lowest price target for the stock is $47 — slightly more than -4.9 percent from KO’s current share price.
History has shown that shares in The Coca-Cola Company have gone down on 19 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. Investors will get their next glimpse of KO’s Q4 earnings on February 14. Analysts are forecasting revenue to suffer decline of -6.4 percent to $7.03B in the fiscal fourth quarter, while earnings are seen soaring by nearly 10.26 percent to $0.43 per share. It earned $0.58 per share, better than the $0.55, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $8.26B, better than the $8.17B analysts expected. Earnings are estimated to increase by -26.4 percent this year, 6.52 percent next year and continue to increase by 6.63 percent annually for the next 5 years.
Let’s take a look at some insider activity at The Coca-Cola Company (NYSE:KO) and see the pattern. The earliest insider trade took place on 02/04/2019. Perez Beatriz R parted with a total of 21.74 thousand shares of company at average share price of $48.76. The total for the sales was set at $1.06 million. After this transaction, the Senior Vice President account balance stood at 100.93 thousand shares. The stock grew 1.03 percent since that insider sale. On 11/19/2018, Mann Jennifer K, Senior Vice President, sold 15.1 thousand shares at a price per share of $50.4. This removed 761.04 thousand shares from the insider’s fortune and the stock saw a -2.26 percent retreat in value since the news became public. This transaction left 30.24 thousand shares in the Senior Vice President account.
On 11/12/2018, Senior Vice President Dinkins James L performed a sale transaction worth $457.04 thousand. This sale at $49.95 each has eliminated 9.15 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -1.38 percent decrease since the transaction was reported. The insider now is left with 24.09 thousand shares remaining in the account. Perez Beatriz R, who performs the Senior Vice President job, sold 10 thousand shares for $499.8 thousand. The disposal occurred on 11/12/2018 was priced at $49.98 per share. The share price plunged -1.44 percent since the reporting date. Perez Beatriz R now left with a stake of 100.76 thousand KO stock worth $4.98 million after the insider selling.
The stock is currently hovering around the first support level of $49.13. Below this, the next support is placed in the zone of $48.83. Till the time, the KO stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 63.16 on daily chart, which may remain a cause for concern. If the price breaks below $48.83 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $49.59 mark may result into a pull-back move towards $49.75 level.
Shares of The Coca-Cola Company (KO) are trading at a P/E ratio of 31.48 times earnings reported for the past 12 months. The industry KO operates in has an average P/E of 30.11. Its P/E ratio went as low as 21.7X and as high as 41.7 over the 5-year span.Further, it is sporting a 6.55 on the Price-to-Sales ratio. Compare this with the industry average P/S of 2.02. 63.7 percent is the gross profit margin for The Coca-Cola Company and operating margin sits at 39.6 percent. Along with this, the net profit margin is 8.6 percent.