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Coca-Cola exec sells over $2.4m in stock, buys $1.5m worth

Published 08/09/2024, 02:02 PM
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Coca-Cola Company (NYSE:KO) executive Beatriz R. Perez, who serves as the Executive Vice President, has recently engaged in significant trading of the company's shares, according to the latest filings. On August 8, Perez sold a total of 35,382 shares at an average price of $68.622, netting approximately $2.43 million. On the same day, she also acquired the same number of shares at the price of $43.515, amounting to around $1.54 million.

The transactions were part of Perez's stock trading plan and were disclosed in a filing with the Securities and Exchange Commission. The sales occurred in multiple transactions, with prices ranging from $68.6150 to $68.6250. This weighted average price reflects the aggregate sale and indicates a broad range within which the stock was traded.

Following the sale, Perez's direct holdings in Coca-Cola stock decreased, yet she still maintains a significant stake in the company. The shares sold were offset by the same amount of shares acquired through the exercise of employee stock options, which were granted under the company's equity plan and had reached their vesting period.

In addition to the direct transactions, the filing also noted that Perez has indirect holdings through The Coca-Cola Company 401(k) Plan, which included 22,963 shares as of August 7, 2024. Moreover, she has hypothetical shares equivalent to common stock in a Supplemental 401(k) Plan, totaling 10,944 shares as of the same date.

Investors often monitor the trading activity of company insiders such as executives and board members to gain insights into the company's performance and their confidence in the business's prospects. The trading by Perez represents a significant financial move and is likely to be of interest to Coca-Cola investors and market watchers alike.

In other recent news, major consumer goods companies like PepsiCo (NASDAQ:PEP) and Unilever (LON:ULVR) are shifting their focus towards India due to its robust economic expansion. The shift is driven by slower recovery in China and the potential offered by India's diverse tastes and rapidly growing economy. Coca-Cola, PepsiCo, Unilever, and Reckitt are among the companies predicted to increase their market share in India to 20.53% in 2023, from 19.27% in 2022.

In addition, Coca-Cola recently elected Carlos Pagoaga as vice president and announced an upcoming quarterly dividend of 48.5 cents per common share. Pagoaga now oversees the company's Global Community Affairs and serves as President of The Coca-Cola Foundation.

Truist Securities and RBC Capital Markets have both raised their price target on Coca-Cola's shares, reflecting confidence in the company's performance and growth potential. Truist Securities increased its target to $70, while RBC Capital Markets raised its target to $68.

Lastly, Coca-Cola reported a 7% year-over-year increase in comparable earnings per share (EPS) for its second quarter, despite challenges such as currency headwinds and the ongoing process of bottler refranchising. The company also revised its 2024 guidance, forecasting organic revenue growth of 9-10% and a substantial increase in comparable currency-neutral EPS growth of 13-15%. These recent developments reflect the company's current financial status and future expectations.

InvestingPro Insights

Amidst the insider trading activity by Coca-Cola Company's (NYSE:KO) Executive Vice President Beatriz R. Perez, investors are keen to understand the company's current financial standing and future outlook. According to InvestingPro data, Coca-Cola boasts a substantial market capitalization of $295.7 billion, reflecting its significant presence in the beverage industry. The company's P/E ratio stands at 27.77, which, while indicating a high valuation relative to near-term earnings growth, also suggests investor confidence in its long-term profitability.

One of the notable InvestingPro Tips for Coca-Cola is its impressive gross profit margin, which has reached 60.53% over the last twelve months as of Q2 2024. This indicates a strong ability to convert sales into profit, a critical factor for investors assessing the company's efficiency. Additionally, Coca-Cola has raised its dividend for 54 consecutive years, showcasing a consistent commitment to returning value to shareholders. This can be particularly attractive for income-focused investors.

Further insights from InvestingPro reveal that the company's revenue has grown by 5.27% over the last year as of Q2 2024, demonstrating its capacity to expand amid challenging market conditions. Moreover, the dividend yield stands at 2.82%, paired with a dividend growth of 5.43%, reinforcing the company's attractive income-generating potential.

For investors seeking a deeper dive into Coca-Cola's financial metrics and strategic positioning, there are an additional 10 InvestingPro Tips available, which can be accessed through the dedicated InvestingPro platform for Coca-Cola at https://www.investing.com/pro/KO. These tips offer valuable insights into factors such as earnings revisions, stock volatility, and valuation multiples, all of which can help investors make informed decisions regarding their investment in Coca-Cola.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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