On September 14, 2023, it was reported that the State Board of Administration of Florida Retirement System had increased its position in Monster Beverage Co. (NASDAQ:MNST) by a significant margin in the first quarter. According to the company’s recent filing with the Securities and Exchange Commission (SEC), the institutional investor now owns 916,270 shares of Monster Beverage’s stock after acquiring an additional 459,935 shares during the quarter. This represents a 100.8% increase in their ownership.
At the end of the first quarter, it was revealed that State Board of Administration of Florida Retirement System held approximately 0.09% ownership stake in Monster Beverage, valued at $49,488,000. This substantial investment demonstrates the confidence placed by this institutional investor in the company’s potential for growth and profitability.
Monster Beverage is a leading American beverage company known for its wide range of energy drinks and non-alcoholic beverages. The company has been making significant strides in terms of financial performance and market presence.
In August 2023, Monster Beverage announced its earnings results for the previous quarter. The company reported earnings per share (EPS) of $0.39, meeting analysts’ consensus estimate perfectly. The company generated revenue amounting to $1.86 billion during this period, slightly below analysts’ expectations of $1.87 billion.
Despite falling slightly short on revenue expectations, Monster Beverage showcased positive growth with a year-over-year increase in quarterly revenue by 12.1%. This highlights the ability of Monster Beverage to adapt to changing market dynamics and continue to expand its customer base.
Moreover, Monster Beverage demonstrated impressive profitability during this period as well. The company achieved a net margin of 21.45%, exemplifying its ability to effectively manage costs while generating robust revenues.
Additionally, Monster Beverage boasted a return on equity (ROE) figure of 19.75%. ROE is commonly used as an indicator of a company’s profitability by measuring how efficiently it utilizes shareholders’ investments. Monster Beverage’s high ROE suggests that it is utilizing its resources effectively to generate returns.
Industry analysts anticipate that Monster Beverage Co. will post earnings per share (EPS) of 1.54 for the current fiscal year, based on their sell-side projections. This forecast underscores the positive sentiment surrounding the company and its potential for continued growth in the foreseeable future.
With the State Board of Administration of Florida Retirement System significantly raising its stake in Monster Beverage, investors may be intrigued by this development and consider exploring investment opportunities within this industry. However, as with any investment decision, it is essential to conduct thorough research and consult with financial advisors before making any commitments.
Overall, Monster Beverage’s performance in recent quarters indicates its ability to adapt to market challenges while maintaining steady growth. The company’s focus on innovation, strong brand presence, and strategic partnerships contribute to its position as a leading player in the beverage industry. Investors and industry observers alike will likely continue monitoring Monster Beverage’s progress closely as it navigates future opportunities and challenges.
Investor Activity and Insider Trading Provide Insights into Monster Beverage’s Potential Growth
As of September 14, 2023, Monster Beverage has seen significant activity from several large investors. Scissortail Wealth Management LLC made a noteworthy move by acquiring a new position in the company during the 1st quarter, with an estimated value of approximately $596,970,000. Additionally, Freedom Wealth Alliance LLC purchased shares in Monster Beverage during the fourth quarter of last year, with a reported value of $25,000. AXS Investments LLC and Resurgent Financial Advisors LLC also acquired new positions during the same time frame at values of $26,000 each. Ancora Advisors LLC joined in as well during the 1st quarter of this year by purchasing a stake in Monster Beverage for approximately $27,000.
It is interesting to note that these newly acquired positions add up to about 64.60% ownership of the stock by hedge funds and other institutional investors.
Recently, several brokerages have issued reports on MNST. HSBC initiated coverage on Monster Beverage with a “buy” rating and set a price target of $72.00 on the stock. Evercore ISI reiterated an “outperform” rating and established a target price of $65.00 for the company’s shares. Similarly, Morgan Stanley reaffirmed its belief that Monster Beverage will perform well with an “overweight” rating and set their price target at $63.00. MKM Partners increased their original price objective from $55.00 to $57.00 while maintaining a “neutral” rating on the stock.
Lastly, Stifel Nicolaus raised their target price for Monster Beverage shares from $63.00 to $65.00 and gave it a “buy” rating in their research report dated July 31st.
Moving on to insider activity within the company, Director Mark J.Hall sold 56,202 shares of Monster Beverage stock at an average price of $58.81 per share on August 14th. This resulted in a total value of $3,305,239.62. Following the sale, Director Mark J. Hall now holds 1,027,840 shares valued at approximately $60,447,270.40.
Additionally, Director Mark J.Hall sold another 110,000 shares on August 9th at the average price of $57.35 per share for a total transaction value of $6,308,500.00.
Overall, insiders have sold a total of 166,318 shares worth $9,620,379 over the past three months. It is worth noting that corporate insiders currently hold 9.40% of Monster Beverage’s stock.
On Thursday morning, MNST stock opened at $56.52 per share. As of that day, Monster Beverage boasted a market capitalization of around $59.21 billion and had a price-to-earnings ratio of 41.56. Additionally, the company has a PEG ratio of 1.60 and a beta rating of 0.83.
Monster Beverage Co.’s stock performance over the past year indicates that the lowest it reached was $42.81 while its highest was $60.47 within the same period.
The business also maintains a fifty-day simple moving average price of $57.28 and possesses a two-hundred-day simple moving average price of $56.42.
These recent developments in investor activity and insider trading provide valuable insights into Monster Beverage’s current standing within the market and its potential for future growth and success.