Zacks Investment Research upgraded shares of Molson Coors Brewing Co. (NYSE:TAP) from a hold rating to a strong-buy rating in a research report released on Tuesday. The brokerage currently has $125.00 price objective on the stock.
According to Zacks, “Estimates have been rising as Molson Coors is close to acquiring full stake in MillerCoors as the merger deal between Ab InBev and SABMiller moves ahead with shareholders’ approval. The deal is encouraging after the company posted weaker-than-expected earnings in the second quarter of 2016. We note the company is facing macro-economic headwinds ahead. Molson Coors’ profits have been impacted by unfavorable foreign currency movements and lower volumes owing to weak consumer demand. The termination of business contracts in the U.K. and Canada has also hurt sales. Nevertheless, we believe that the company’s cost-savings initiatives and increased marketing investments have the potential to drive volumes.”
A number of other brokerages have also recently issued reports on TAP. Susquehanna reiterated a buy rating and set a $130.00 price objective on shares of Molson Coors Brewing in a research note on Sunday, July 17th. Citigroup Inc. upgraded Molson Coors Brewing from a neutral rating to a buy rating and lifted their price objective for the company from $101.00 to $115.00 in a research note on Friday, July 29th. Stifel Nicolaus reissued a buy rating and issued a $134.00 target price (up previously from $119.00) on shares of Molson Coors Brewing in a report on Sunday, June 12th. Finally, Bryan, Garnier & Co raised Molson Coors Brewing to a buy rating in a report on Friday, July 8th. One investment analyst has rated the stock with a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the stock. The company has a consensus rating of Buy and an average target price of $118.88.
Shares of Molson Coors Brewing (NYSE:TAP) opened at 107.73 on Tuesday. The stock has a market cap of $23.14 billion, a PE ratio of 55.85 and a beta of 0.88. Molson Coors Brewing has a one year low of $78.17 and a one year high of $111.24. The company’s 50-day moving average price is $104.11 and its 200-day moving average price is $99.94.
Molson Coors Brewing (NYSE:TAP) last announced its quarterly earnings data on Tuesday, August 2nd. The company reported $1.11 earnings per share (EPS) for the quarter, meeting the Zacks’ consensus estimate of $1.11. The business earned $986.20 million during the quarter, compared to analysts’ expectations of $970.25 million. Molson Coors Brewing had a return on equity of 8.21% and a net margin of 7.54%. The firm’s quarterly revenue was down 1.9% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.41 earnings per share. Equities research analysts anticipate that Molson Coors Brewing will post $3.29 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which was paid on Thursday, September 15th. Investors of record on Wednesday, August 31st were issued a $0.41 dividend. This represents a $1.64 annualized dividend and a dividend yield of 1.52%. The ex-dividend date of this dividend was Monday, August 29th. Molson Coors Brewing’s payout ratio is currently 88.65%.
In related news, CEO Krishnan Anand sold 1,869 shares of Molson Coors Brewing stock in a transaction on Friday, July 29th. The stock was sold at an average price of $102.00, for a total value of $190,638.00. Following the completion of the sale, the chief executive officer now owns 26,777 shares of the company’s stock, valued at $2,731,254. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Andrew Thomas Molson sold 1,173 shares of Molson Coors Brewing stock in a transaction on Wednesday, August 3rd. The stock was sold at an average price of $99.49, for a total value of $116,701.77. Following the completion of the sale, the director now directly owns 6,834 shares of the company’s stock, valued at approximately $679,914.66. The disclosure for this sale can be found here. 2.53% of the stock is owned by corporate insiders.
Several hedge funds have recently modified their holdings of the company. Eqis Capital Management Inc. raised its stake in shares of Molson Coors Brewing by 35.0% in the third quarter. Eqis Capital Management Inc. now owns 6,008 shares of the company’s stock valued at $660,000 after buying an additional 1,557 shares during the last quarter. Kentucky Retirement Systems Insurance Trust Fund bought a new stake in Molson Coors Brewing during the second quarter valued at about $752,000. Kentucky Retirement Systems bought a new stake in Molson Coors Brewing during the second quarter valued at about $1,583,000. Mason Street Advisors LLC bought a new stake in Molson Coors Brewing during the second quarter valued at about $2,508,000. Finally, Northwestern Mutual Wealth Management Co. raised its stake in Molson Coors Brewing by 15.6% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 3,990 shares of the company’s stock valued at $403,000 after buying an additional 538 shares in the last quarter. 77.65% of the stock is owned by institutional investors.
About Molson Coors Brewing
Molson Coors Brewing Company (MCBC) is a holding company that operates as a brewer. The Company has a portfolio of brands, including Carling, Coors Light, Molson Canadian and Staropramen, as well as craft and specialty beers, such as Blue Moon, Creemore Springs, Cobra and Doom Bar. The Company operates through four segments: Molson Coors Canada (MCC or Canada segment); MillerCoors LLC (MillerCoors or U.S.
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