On June 1, 2023, it was reported that Creative Planning had raised its stake in Monster Beverage Co. (NASDAQ:MNST) by a staggering 13.4%, as per the Securities & Exchange Commission’s most recent filing. This move has bolstered the fund’s existing holdings of the company’s stock to over 40,000 shares with a market value of $4,097,000.
Monster Beverage Corp., is a holding entity operating within lucrative energy drinks and concentrates market segments. Its growth-oriented business model encompasses development, marketing, sale and distribution channels for their products such as Monster Energy Drinks to its end consumers via bottlers and full-service beverage distributors.
On Thursday, June 1st 2023, NASDAQ MNST commenced trading at $58.62 while marking its return to upward momentum in this past week since crushing its financial earnings results expectations for Q3’23 with adjusted earnings-per-share (EPS) of $0.97 versus expected EPS of $0.90 – resulting in a significant bump in its stock price.
The firm’s revenue growth potential is underpinned by demand for healthful alternatives including organic beverages and dietary supplements which are found on shelves alongside high-sugar energy drinks from the likes of Red Bull and Coca-Cola Co.’s Coke Energy. As such, this milestone sees Monster Beverage Co.’s perseverance rewarded as they conquer the ongoing need to offer healthier drink options to their broad customer base while maintaining formidable traction amidst peak competition.
Moreover, MNST looks set to leverage continued innovation of current brands and expansion into global markets; particularly promising areas include cannabis-infused beverages due to an ever-growing consumer interest in relief-focused offerings worldwide.
Unsurprisingly upon reviewing crucial metrics like its P/E ratio of 48.05 and PEG ratio of only 1.63 alongside a Beta score hovering around 0.86 signals matured yet efficient operations with scope yet to be explored through intelligent business growth strategies. It is worth noting the dividend payout ratio is a modest 17% providing scope for management to increase or decrease it as required.
In summary, on this day of June 1st 2023 – the energy drinks and concentrates market has proven challenging with consumers embracing healthier options and competitors vying for finite market shares. However, MNST’s growth-oriented strategy embodied in upbeat financial earnings results and a stable technical outlook further fortified through ongoing innovation augur well indeed.
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Monster Beverage Corporation Attracts Institutional Investors and Hedge Funds
Monster Beverage Corporation, the popular energy drink manufacturer, has been attracting attention from institutional investors and hedge funds in recent times. According to a report by Zions Bancorporation N.A., it increased its holdings in Monster Beverage by 15.9% during the fourth quarter of 2022 and currently owns over 33,000 shares of the company’s stock worth $3.366 million after purchasing an additional 4,547 shares during the period. Other institutional investors like Assetmark Inc., Schroder Investment Management Group and NS Partners Ltd also increased their holdings in Monster Beverage by 27.3%, 44.6%, and 12.1%, respectively.
Recently, several brokerages have commented on MNST with six research analysts rating the stock as ‘hold’ and fourteen giving it a ‘buy’ rating according to Bloomberg.com. The average target price for the company is set at $59.97 with Wells Fargo & Company lifting its target price on the company’s shares from $58 to $65 and giving it an “overweight” rating.
Monster Beverage Corp is a global holding company that sells ready-to-drink packaged energy drinks under its segment titled Monster Energy Drinks to bottlers and full-service beverage distributors across many countries globally. In May 2023, it posted a quarterly revenue of $1.70 billion with earnings per share (EPS) of $0.38 surpassing analysts’ estimates of $0.34 EPS by marking an increase in total net margin profits for shareholders.
Insider trading news shows that Director Mark Vidergauz sold 4,000 shares of the business’s stock at an average price of $59.75 while Emelie Tirre sold about $3 million worth of stocks at an average rate of about $51 per stock which resulted in both insiders selling a total amount of 259,963 shares amounting to over $14 million in just one quarter. Despite this sell-off by insiders, Hedge funds and other institutional investors still show confidence in the company’s growth prospects and profitable ventures into new markets.
