Should I shadow Coca-Cola (NYSE:KO) institutional investors?


USD 58.60  0.66  1.11%   

While some millenniums are indifferent towards consumer defensive space, it makes sense to outline Coca-Cola in terms of its current potentials. As expected, Coca Cola is starting to reaffirm its true potential as institutional investors are becoming more and more confident in the future outlook. The returns on the market and returns on Coca Cola appear somewhat sensitive to each other for the last few months. The proof of persistent basic indicators of the company suggests a short-term price swing for institutional investors of Coca Cola. Coca-Cola is scheduled to announce its earnings this week. The stock is still going through above-average trading activities.
Published over two months ago
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This firm's average rating is Buy from 13 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on Coca Cola market sentiment investors' perception of the future value of Coca Cola. Let us look at a few aspects of Coca Cola technical analysis. About 71.0% of the company shares are owned by institutional investors. Coca-Cola next dividend is scheduled to be issued on the 14th of June 2022. The entity had 2:1 split on the 13th of August 2012.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of Coca-Cola. In general, we focus on analyzing Coca Cola stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Coca Cola's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of Coca Cola's intrinsic value. In addition to deriving basic predictive indicators for Coca Cola, we also check how macroeconomic factors affect Coca Cola price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Coca Cola's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Coca Cola in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Coca Cola. Your research has to be compared to or analyzed against Coca Cola's peers to derive any actionable benefits. When done correctly, Coca Cola's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Coca-Cola.

How important is Coca Cola's Liquidity

Coca Cola financial leverage refers to using borrowed capital as a funding source to finance Coca-Cola ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Coca Cola financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Coca Cola's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Coca Cola, but it might be worth checking our own buy vs. sell analysis

Coca Cola exotic insider transaction detected

Legal trades by Coca Cola insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Coca Cola insider trading alert for general transaction of hypothetical shares by James Quincey, Chairman and CEO, on 4th of September 2022. This event was filed by Coca Cola Co with SEC on 2022-07-29. Statement of changes in beneficial ownership - SEC Form 4. James Quincey currently serves as chairman of the board, chief executive officer of Coca-Cola [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

A Deeper look at Coca Cola

The company has a beta of 0.719. Let's try to break down what Coca Cola's beta means in this case. As returns on the market increase, Coca Cola returns are expected to increase less than the market. However, during the bear market, the loss on holding Coca Cola will be expected to be smaller as well. The beta indicator helps investors understand whether Coca Cola moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Coca Cola deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Coca-Cola generated the yearly revenue of 40.13 B. Reported Net Income was 10.31 B with gross profit of 23.3 B.

Momentum Analysis of Coca Cola suggests possible reversal in August

Latest Market Risk Adjusted Performance is up to -0.09. Price may slide again.
As of the 23rd of July, Coca Cola shows the mean deviation of 1.09, and Risk Adjusted Performance of (0.06). Coca-Cola technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for Coca-Cola, which can be compared to its rivals. Please confirm Coca-Cola variance, as well as the relationship between the value at risk and skewness to decide if Coca-Cola is priced correctly, providing market reflects its regular price of 61.59 per share. Given that Coca Cola has jensen alpha of 0.0272, we suggest you to validate Coca-Cola's prevailing market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On Coca-Cola

Whereas other entities within the beverages—non-alcoholic industry are still a little expensive, even after the recent corrections, Coca Cola may offer a potential longer-term growth to institutional investors. To conclude, as of the 23rd of July 2022, we believe that at this point, Coca Cola is fairly valued with low chance of financial distress within the next 2 years. Our concluding 'Buy-vs-Sell' recommendation on the company is Strong Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Coca-Cola. Please refer to our Terms of Use for any information regarding our disclosure principles.

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