Clifford Swan Increases Coca-Cola Stake by Over 20% in Q3

Clifford Swan Investment Counsel LLC has expanded its investment in the Coca-Cola Company (NYSE: KO) by 20.3% during the third quarter of 2023. The institutional investor now holds a total of 115,095 shares, having acquired an additional 19,436 shares valued at approximately $7,633,000 at the end of the quarter.

Several other major investors have also adjusted their positions in Coca-Cola recently. Vanguard Group Inc. has increased its holdings by 0.4%, bringing its total to 368,885,160 shares worth about $24.46 billion. Norges Bank entered the market with a new position valued at $3.85 billion in the second quarter, while Legal & General Group Plc raised its stake by 1.1%, now owning 27,281,552 shares valued at $1.93 billion. Furthermore, Invesco Ltd. boosted its holdings by 10.9%, acquiring an additional 2,497,585 shares in the same period.

As of now, hedge funds and institutional investors collectively own 70.26% of Coca-Cola’s stock.

Analysts Provide Positive Outlook

Coca-Cola has attracted positive attention from Wall Street analysts. According to recent research reports, Wells Fargo & Company raised its price target from $79.00 to $87.00, assigning an “overweight” rating. Barclays also increased its price target to $83.00, while Citigroup set a new target of $87.00 with a “buy” rating. These adjustments reflect a generally optimistic view, as one analyst rates the stock a Strong Buy and fifteen others have issued Buy ratings. MarketBeat.com indicates that Coca-Cola currently holds a consensus rating of “Buy” with an average price target of $84.33.

In addition to analyst ratings, insider trading activity has also drawn attention. CEO James Quincey sold 337,824 shares on February 3, 2023, at an average price of $77.10, totaling approximately $26.05 million. Following the sale, Quincey retained 342,546 shares valued at around $26.41 million, marking a 49.65% reduction in his ownership.

Coca-Cola’s Financial Performance

Coca-Cola’s stock opened at $80.48 on the last trading day. The company has reported various key financial metrics, including a market capitalization of $346.12 billion, a P/E ratio of 26.47, and a debt-to-equity ratio of 1.23. The firm’s 50-day moving average price stands at $73.80, while the 200-day moving average is $70.74. Over the past year, the stock has reached a low of $65.35 and a high of $81.09.

In its most recent earnings report on February 10, 2023, Coca-Cola posted earnings of $0.58 per share, outperforming analyst expectations of $0.56. Revenue for the quarter was reported at $11.82 billion, slightly below analyst projections of $12.04 billion. The company noted a net margin of 27.34% and a return on equity of 41.31%, with quarterly revenue reflecting a 2.2% increase compared to the same period last year.

Coca-Cola has set its fiscal year 2026 guidance at an earnings per share range of $3.210 to $3.240. Analysts predict an EPS of $2.96 for the current fiscal year.

Additionally, the company announced a quarterly dividend of $0.53 per share, payable on April 1, 2023, to shareholders recorded by March 13. This represents a yield of 2.6% and marks an increase from the previous dividend of $0.51.

Overall, Coca-Cola continues to demonstrate solid performance and investor confidence amidst a dynamic market environment.