Is Coca-Cola Co (NYSE:KO) a Solid Choice Right Now?

[EDGAR] Coca-Cola Co (NYSE:KO)(TREND ANALYSIS) completed a public offering of $750,000,000 aggregate principal amount of its 0.875% Notes due 2017, $1,500,000,000 aggregate principal amount of its 1.875% Notes due 2020 and $1,750,000,000 aggregate principal amount of its 2.875% Notes due 2025 (collectively, the “Notes”).

The offering of the Notes was made pursuant to the Company’s shelf registration statement on Form S-3 (Registration No. 333-191953) filed with the Securities and Exchange Commission (the “SEC”) on October 28, 2013.

In connection with the offering of the Notes, the Company entered into an Underwriting Agreement, dated October 22, 2015 (the “Underwriting Agreement”), among the Company, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, as representatives of the several underwriters named therein (together, the “Underwriters”). Pursuant to the Underwriting Agreement, the Company agreed to sell the Notes to the Underwriters, and the Underwriters agreed to purchase the Notes for resale to the public. The Underwriting Agreement includes customary representations, warranties and covenants by the Company. It also provides for customary indemnification by each of the Company and the Underwriters against certain liabilities and customary contribution provisions in respect of those liabilities.

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Coca-Cola Co (NYSE:KO) stock is currently trading 5.31% below its 52-week-high, 16.55% above its 52-week-low. The 1-year stock price history is in the range of $36.56 – $45. Coca-Cola Co (KO) has a price to earnings ratio of 27.17 versus Consumer Goods sector average of 26.34. KO stock price has outperformed the S&P 500 by 1.5%. The Non-alcoholic beverages company is currently valued at $185.01 billion and its share price closed the last trading session at $42.61. The stock has a 50-day moving average of $40.48 and a 200-day moving average of $40.53.

Coca-Cola Co (KO) current short interest stands at 0.04 million shares. It has decreased by 99% from the same period of last month. Around 1% of the company’s shares, which are float, are short sold. With a 10-days average volume of 21.52 million shares, the number of days required to cover the short positions stand at 0.1 day.

KO reported last quarter earnings on October 21. The Non-alcoholic beverages company announced earnings per share of $0.51 against a consensus Street estimate of $0.5, beating the average estimate by $0.01. This corresponds to a decrease of $0.13 compared to the same quarter of the previous fiscal year.

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There are currently twenty-six analysts that cover Coca-Cola Co stock. Of those twenty-six, thirteen have a Buy rating, ten have a Hold rating and three have a Sell rating. On a consensus basis this yields to an Overweight rating. The consensus target price stands at $45.05.

A recent analyst activity consisted of JP Morgan reiterating their Neutral stance on October 20. JP Morgan increased their price target on KO from $46 to $48. This corresponds to a 12.65% upside from the last closing price. On the date of report, the stock closed at $42.29.

Deutsche Bank resumed their coverage on the stock with Buy rating on September 25. On the date of report, the stock closed at $39.62.

Another research firm was Barclays who resumed their coverage on the stock with Equal-weight rating on August 7. Barclays fixed their price target at $45. This translates to a 5.61% upside from the last closing price. On the date of report, the stock closed at $41.41.

Company snapshot

The Coca-Cola Company manufactures, markets, and distributes soft drink concentrates and syrups. The Company also distributes and markets juice and juice-drink products. Coca-Cola distributes its products to retailers and wholesalers in the United States and internationally.

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