University of Texas Boosts Stake in Coca-Cola by Over 4,000%

The University of Texas Texas A&M Investment Management Co. has significantly increased its stake in the Coca-Cola Company (NYSE: KO) by an impressive 4,173.3% during the second quarter of 2023. According to data from Holdings Channel, the firm now holds 24,785 shares of Coca-Cola, having acquired an additional 24,205 shares in the past quarter. By the end of this reporting period, the total value of its holdings reached approximately $1.75 million.

This substantial investment reflects a broader trend among institutional investors looking to capitalize on Coca-Cola’s performance. Other notable hedge funds have also adjusted their positions in the beverage giant. For instance, MorganRosel Wealth Management LLC initiated a new stake in Coca-Cola during the first quarter, valued at around $25,000. Similarly, 1248 Management LLC acquired shares worth approximately $26,000 in the same period.

In the second quarter, Caitong International Asset Management Co. Ltd. grew its stake in Coca-Cola by 5,142.9%, now owning 367 shares valued at $26,000. Ridgewood Investments LLC also increased its position by 148.4% in the first quarter, bringing its total to 477 shares worth about $34,000. Additionally, GFG Capital LLC purchased a new stake during the second quarter for approximately $34,000. Overall, institutional investors now own 70.26% of Coca-Cola’s stock.

Coca-Cola’s stock price experienced a slight decline of 0.3%, opening at $69.74 on Friday. The company’s performance indicators reveal a fifty-day simple moving average of $67.81 and a two-hundred-day simple moving average of $69.74. The stock has fluctuated between a 12-month low of $60.62 and a 12-month high of $74.38, with a market capitalization of $300.13 billion.

In a positive development for shareholders, Coca-Cola recently announced a quarterly dividend of $0.51 per share. This dividend will be distributed on December 15, 2023, to investors on record as of December 1, 2023. The annualized dividend totals $2.04, reflecting a yield of 2.9%, while the company’s payout ratio stands at 67.55%.

In related news, insider Nikolaos Koumettis sold 37,396 shares of Coca-Cola on August 5, 2023, at an average price of $69.10, totaling approximately $2.58 million. Following this transaction, Koumettis retained 209,513 shares, valued at around $14.48 million, marking a 15.15% reduction in his position. Insider ownership accounts for 0.97% of Coca-Cola’s stock.

The investment community remains optimistic about Coca-Cola’s future. Several analysts have provided updated price targets for the stock. Weiss Ratings reaffirmed a “buy” rating with a grade of B- on Saturday. TD Cowen raised its price target from $75.00 to $80.00 while maintaining a “buy” rating in a report published on Wednesday. Wells Fargo & Company has also increased its price target from $75.00 to $79.00 and categorized the shares as “overweight.” Additionally, BNP Paribas restated an “outperform” rating and set a target of $83.00.

Overall, one research analyst has rated Coca-Cola with a “Strong Buy,” while fifteen analysts recommend a “Buy,” resulting in an average rating of “Buy” and a target price of $78.31 according to MarketBeat.

The Coca-Cola Company, headquartered in Atlanta, Georgia, is a leading global beverage manufacturer, offering a diverse range of non-alcoholic drinks, including sparkling soft drinks, coffee, tea, juices, and plant-based beverages. The company also provides beverage concentrates and syrups to retailers, solidifying its position in the global market.