Bank of America has increased its price target for Monster Beverage Corporation (NASDAQ: MNST) from $77.00 to $85.00. This adjustment reflects a positive outlook on the company’s stock, which Bank of America continues to rate as a “buy.” The revised target was announced in a report published on November 6, 2023, indicating strong confidence in Monster’s market performance.
Other financial analysts have also weighed in on Monster Beverage, further solidifying the company’s favorable position in the market. The Royal Bank of Canada upgraded its rating from “outperform” to a price target of $81.00, up from $75.00. This adjustment was made just prior to Bank of America’s announcement on December 1.
Stock Performance and Consensus Ratings
In a series of reports, analysts have expressed optimism about Monster Beverage’s future. JPMorgan Chase & Co. raised its price target from $70.00 to $75.00, assigning a “neutral” rating. Similarly, UBS Group also increased its target from $72.00 to $75.00, maintaining a “neutral” outlook. Additionally, Deutsche Bank Aktiengesellschaft adjusted its target from $75.00 to $77.00 with a “buy” rating.
Overall, the stock has received varied ratings: two analysts rate it as a “Strong Buy,” thirteen have assigned a “Buy” rating, nine consider it a “Hold,” and one has assigned a “Sell” rating. According to data from MarketBeat.com, Monster Beverage currently holds a consensus rating of “Moderate Buy” with an average target price of $73.67.
Financial Highlights and Insider Activity
Monster Beverage’s latest earnings report, released on November 6, 2023, revealed that the company achieved earnings per share (EPS) of $0.56, surpassing analysts’ expectations of $0.48 by $0.08. The firm’s revenue for the quarter was $2.20 billion, exceeding estimates of $2.11 billion. The company noted a year-over-year revenue increase of 16.8%, with a return on equity of 27.76% and a net margin of 21.65%.
In terms of insider trading, Guy Carling, an insider, sold 38,438 shares on November 13 for an average price of $71.33, totaling approximately $2.74 million. Following this transaction, Carling retained 21,993 shares valued at around $1.57 million, representing a 63.61% reduction in his holdings. Another insider, Emelie Tirre, sold 30,000 shares on December 12 for an average price of $73.31, amounting to about $2.20 million and reducing her position by 31.94%.
In total, insiders have sold 274,981 shares of Monster Beverage stock worth approximately $20.14 million over the past three months. Currently, insiders hold 7.80% of the company’s shares.
Institutional Investments and Company Overview
Institutional investors have shown interest in Monster Beverage, with several firms adjusting their stakes. For example, Armstrong Advisory Group Inc. increased its holdings by 49.0% during the third quarter, now owning 444 shares valued at $30,000. D.A. Davidson & CO. raised its position by 4.1%, owning 3,930 shares worth $265,000. Other firms, such as Premier Path Wealth Partners LLC and Cary Street Partners Investment Advisory LLC, also bolstered their investments in the company.
As of now, institutional investors and hedge funds collectively own 72.36% of Monster Beverage’s stock, reflecting strong institutional confidence in the brand’s future.
Monster Beverage Corporation is a prominent American beverage company, primarily recognized for its Monster Energy brand. The company’s diverse portfolio includes carbonated energy drinks, energy coffees, hydration beverages, and flavored functional drinks, appealing to various consumer segments. Originally established around the Hansen’s Natural line of juices and sodas, Monster strategically shifted focus to the energy drink market in the early 2010s.
