The Coca-Cola Company (KO): A Technical View


As of Wednesday close, The Coca-Cola Company’s (NYSE:KO) stock was up $0.28, moving up 0.45 percent to $62.63. The average number of shares traded per day over the past five days has been 11,669,020 shares. 5 times new highs have been achieved over the past 5 days, with a $2.11 gain in that time frame. In the last twenty days, the average volume was 12,704,311, while in the previous 50 days, it was 14,579,326.

Since last month, KO stock rose 6.24%. Shares of the company fell to $56.57 on 10/24/22, the lowest level in the past month. A 52-week high of $67.20 was reached on 04/25/22 after having rallying from a 52-week low of $52.28. Since the beginning of this year, KO’s stock price has risen by 5.78% or $3.42, and marked a new high 20 times. However, the stock has declined by -6.80% since its 52-week high.

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KO stock investors should be aware that The Coca-Cola Company (KO) stock had its last reported insider trading activity 7 days ago on Nov 18. QUAN NANCY, the SVP & Chief Technical Officer of the company, disposed of 13,746 shares for $61.12 on Nov 18. It resulted in a $840,198 divestment by the insider. RANDAZZA MARK sold 42,068 shares at an average price of $60.86 on Nov 11. The insider now owns 40,146 shares following the transaction. On Oct 28, Director Allen Herbert A III bought 33,200 shares at $60.18 apiece. The transaction was valued at $1,997,953.

Valuation Metrics

Right now, The Coca-Cola Company (KO) has a P/E ratio of about 27.46. The stock’s beta is 0.58. Besides these, the trailing price-to-sales (P/S) ratio of 6.35, the price-to-book (PB) ratio of 11.88, and the price-to-cash flow ratio of 62.23 may also be considered.

The latest dividend of $0.44 per share was paid out, remained unchanged from last year’s $0.44. On Thursday February 17 2022, a $0.02 dividend increase was announced.

Financial Health

In the three months ended September 29, The Coca-Cola Company’s quick ratio stood at 1.00, while its current ratio was 1.10, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending September 29 was 1.56, and the total debt-to-equity ratio was 1.74. On the profitability front, the trailing twelve-month gross margin is 58.50% percent. In the year ended September 29, operating margins totaled 26.00%. Based on annual data, KO earned $23.3 billion in gross profit and brought in $38.66 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 12.60%. Return on equity (ROE) for the past 12 months was 42.40%.

In The Coca-Cola Company’s quarter-end financial report for September 29, it reported total debt of $35.46 billion against cash and short-term investments of $3.09 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. KO’s revenue rose 9.23% to $11.32 billion during the quarter, while net income inched up to $11.06 billion. While analysts expected The Coca-Cola Company to report $0.64 quarterly earnings, the actual figure was $0.69 per share, beating the consensus estimate by 7.80%. During the quarter, the company generated $3.4 billion in EBITDA. The liabilities of The Coca-Cola Company were 68.03 billion at the end of its most recent quarter ended September 29, and its total debt was $41.19 billion. The value of shareholders’ equity is $4.32 billion.

Technical Picture

This quick technical analysis looks at The Coca-Cola Company’s (KO) price momentum. With a historical volatility rate of 10.17%, the RSI 9-day stood at 75.09% on 23 November.

With respect to its five-day moving average, the current The Coca-Cola Company price is up by +3.49% percent or $2.11. At present, KO shares trade +5.46% above its 20-day simple moving average and -1.03% percent below its 100-day simple moving average. However, the stock is currently trading approximately +3.03% above its SMA50 and +1.02% above its SMA200.

Stochastic coefficient K was 96.55% and Stochastic coefficient D was 91.14%, while ATR was 0.92. Given the Stochastic reading of 96.22% for the 14-day period, the RSI (14) reading has been calculated as 68.71%. As of today, the MACD Oscillator reading stands at 1.01, while the 14-day reading stands at 1.63.

Analyst Ratings

Deutsche Bank reiterated its a Hold rating on The Coca-Cola Company (NYSE: KO) in a note to investors. The analysts firm has however raised their price target to $59, representing a possible 3.65% increase in the stock price. The Coca-Cola Company (KO) has been rated Overweight by analysts. According to 0 brokerage firms, KO is a sell, and 7 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 5 analysts rate The Coca-Cola Company stock as buy, with 14 recommending it as overweight.

With a median target price of $66.00, the current consensus forecast for the stock is $59.00 – $76.00. Based on these forecasts, analysts predict The Coca-Cola Company (KO) will achieve an average price target of $66.20.


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