UniSuper Boosts Stake in Monster Beverage as Hedge Funds Rally

UniSuper Management Pty Ltd has increased its holdings in Monster Beverage Corporation (NASDAQ: MNST) by 15.0% during the third quarter of 2023. This adjustment was revealed in the company’s latest 13F filing with the Securities and Exchange Commission (SEC). Following this acquisition, UniSuper now owns 68,438 shares of Monster Beverage, valued at approximately $4.6 million.

Other institutional investors are also adjusting their positions in Monster Beverage. Notably, Norges Bank acquired a new stake in the company during the second quarter, totaling around $544.6 million. Meanwhile, Schroder Investment Management Group reported a staggering increase of 4,877.8% in its holdings, now owning 7,283,879 shares worth about $456.3 million. Similarly, AQR Capital Management LLC raised its stake by 467.0%, owning 6,849,036 shares valued at $423 million after purchasing an additional 5,641,160 shares.

In total, hedge funds and institutional investors now control 72.36% of Monster Beverage’s stock, indicating a strong institutional interest in the company.

Analyst Ratings and Stock Performance

Recent analyst reports reflect a generally positive outlook for Monster Beverage. Zacks Research downgraded the stock from a “strong-buy” to a “hold” rating on January 5, 2024. Conversely, Bank of America raised its price target from $77.00 to $85.00, maintaining a “buy” rating. The Goldman Sachs Group also increased its target price to $83.00, while Evercore ISI set a target of $80.00, both affirming their “buy” ratings.

As of November 6, 2023, Monster Beverage shares opened at $82.00. The company has seen a 52-week low of $45.70 and a high of $82.19. Currently, the firm has a market capitalization of $80.12 billion and a price-to-earnings ratio of 46.59.

In its latest earnings report, Monster Beverage announced earnings per share (EPS) of $0.56, surpassing analysts’ expectations of $0.48. The company’s revenue for the quarter reached $2.20 billion, exceeding the consensus estimate of $2.11 billion and marking a 16.8% increase from the previous year.

Insider Activity and Corporate Profile

In related news, insider transactions have also been notable. Guy Carling sold 38,438 shares on November 13, 2023, for an average price of $71.33, totaling approximately $2.74 million. Following this sale, Carling retained 21,993 shares, reflecting a 63.61% decrease in ownership. Additionally, Emelie Tirre sold 30,000 shares on December 12, 2023, valued at around $2.2 million.

These insider transactions indicate active management engagement with the company’s stock. Over the past 90 days, insiders have sold 274,981 shares worth $20.1 million. Currently, insiders hold 7.80% of the company’s shares.

Monster Beverage Corporation is well-known for its flagship Monster Energy brand and focuses on a broad range of carbonated energy drinks and complementary beverage products. The company has strategically shifted from its origins in juice and soda to dominate the energy drink market, adopting the Monster Beverage name in the early 2010s.

As interest from institutional investors grows and analysts maintain a positive outlook, Monster Beverage appears well-positioned for continued growth in the competitive beverage industry.