Cheviot Value Management LLC has significantly increased its stake in The Coca-Cola Company (NYSE:KO), signaling a notable vote of confidence from institutional investors in the beverage giant. This strategic acquisition saw Cheviot boost its holdings by a substantial 7.5% during the first quarter, as detailed in its latest disclosure with the SEC, reflecting a continued trend of major players adjusting their portfolios.
Specifically, Cheviot Value Management now proudly owns 4,389 shares of Coca-Cola stock, having meticulously added an additional 305 shares to its portfolio in the reporting period. This increased position underscores the firm’s calculated investment approach, with their Coca-Cola holdings valued at an impressive $315,000 by the close of the most recent reporting cycle, highlighting the considerable financial commitment to the iconic brand.
Beyond Cheviot’s noteworthy move, a multitude of other prominent hedge funds have also been actively re-shaping their positions in Coca-Cola shares, indicating broad institutional interest. For instance, Capital International Investors dramatically lifted its holdings by a staggering 96.0% in the fourth quarter, accumulating nearly 25 million shares now valued at over $1.5 billion. Similarly, GAMMA Investing LLC showcased an astonishing 8,419.4% increase in the first quarter, resulting in ownership of nearly 6 million shares worth over $426 million.
Further reinforcing this trend, Capital Research Global Investors expanded its Coca-Cola holdings by 119.0% in the fourth quarter, now commanding over 9.4 million shares. Northern Trust Corp also demonstrated strong conviction, increasing its vast holdings by 9.5%, bringing their total to an astounding 43.8 million shares valued at more than $2.7 billion. Not to be outdone, Invesco Ltd. augmented its position by 18.2%, now holding over 24.5 million shares. Cumulatively, institutional investors and hedge funds now control a significant 70.26% of the company’s stock, underlining its strong appeal among large-scale investment entities.
From a market performance perspective, Coca-Cola shares commenced trading at $68.87 on a recent Friday, reflecting current market sentiment. Over the past year, the stock has navigated a range between a 12-month low of $60.62 and a 12-month high of $74.38, showcasing its historical volatility. The company maintains a robust market capitalization of $296.39 billion, with key financial metrics including a price-to-earnings ratio of 24.42, a PEG ratio of 3.58, and a beta of 0.44, alongside its 50-day and 200-day moving averages hovering around $70.
The financial health of The Coca-Cola Company remains a key focal point for investors, with a debt-to-equity ratio of 1.49, a current ratio of 1.21, and a quick ratio of 0.98, indicating a stable liquidity position. Furthermore, the company recently announced a quarterly dividend of $0.51 per share, scheduled for payment on Wednesday, October 1st, with an ex-dividend date of Monday, September 15th. This translates to an attractive $2.04 annualized dividend, offering a yield of 3.0%, with a current payout ratio of 72.34%, underscoring its commitment to shareholder returns.
Equities analysts have largely expressed positive sentiment regarding Coca-Cola, with a consensus “Buy” rating and an average target price of $77.21 based on MarketBeat.com data. Notable firms such as Morgan Stanley, UBS Group, Cfra Research, BNP Paribas, and JPMorgan Chase & Co. have issued optimistic reports, with multiple “overweight” or “buy” ratings and target prices ranging from $81.00 to $86.00. This strong analyst confidence is complemented by recent insider trading activity, including significant share sales by the CFO and CEO totaling over $29 million, although corporate insiders collectively still maintain a 0.97% ownership of the company’s stock.
