James Quincey, Chairman and CEO of Coca-Cola Co . (NYSE:KO), recently sold 100,000 shares of the company's common stock. The transaction, which took place on November 8, 2024, was executed at a weighted average price of $64.03 per share, amounting to a total sale value of approximately $6.4 million. Following this sale, Quincey holds 342,546 shares directly. Additionally, he has indirect ownership of 44,678 shares through his spouse and 7,327 shares via a 401(k) plan. Quincey also indirectly owns 30,192 hypothetical shares through a supplemental 401(k) plan.
In other recent news, Coca-Cola's third-quarter earnings surpassed expectations with organic sales growth of 9% and earnings per share of $0.77, despite a 1% decline in unit case volume. This positive performance led to adjustments in the company's price target by several analyst firms. BNP Paribas (OTC:BNPQY) Exane reduced Coca-Cola's price target from $78 to $76, citing a more challenging foreign exchange environment. On the other hand, Jefferies increased its price target to $77 from $73, maintaining a Hold rating on the shares. Morgan Stanley (NYSE:MS) also adjusted its price target, bringing it down to $76 from $78, while reaffirming its Overweight rating on the stock.
In response to the ongoing economic strain in China, multinational companies, including Coca-Cola, are adapting their strategies. Coca-Cola's CEO, James Quincey, acknowledged the tough operating environment in China, expressing that the economy is not showing signs of acceleration. Despite these economic headwinds, the company remains optimistic about its long-term strategy and is prepared to adapt to changing macroeconomic conditions.
These are recent developments and it's crucial for investors to monitor the impact of these changes on Coca-Cola's performance.
InvestingPro Insights
While James Quincey's recent stock sale might raise eyebrows, it's essential to consider Coca-Cola's broader financial picture. According to InvestingPro data, Coca-Cola boasts a substantial market capitalization of $273.98 billion, underlining its position as a beverage industry giant. The company's impressive gross profit margin of 60.43% for the last twelve months ending Q3 2024 reflects its strong pricing power and operational efficiency.
InvestingPro Tips highlight Coca-Cola's commitment to shareholder returns, noting that the company has raised its dividend for 54 consecutive years. This long-standing dividend growth, coupled with a current dividend yield of 3.06%, may provide some reassurance to investors concerned about the CEO's stock sale.
Moreover, Coca-Cola's revenue for the last twelve months stands at $46.37 billion, with a modest growth of 2.97% over the same period. While this growth rate may seem conservative, it's worth noting that Coca-Cola operates in a mature market and has maintained profitability, as indicated by another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips on Coca-Cola, providing deeper insights into the company's financial health and market position.
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