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Sapient Capital Reduces Coca-Cola Stake as Analysts Adjust Price Targets

Sapient Capital LLC has reduced its investment in the Coca-Cola Company (NYSE: KO) by 0.8% during the second quarter of 2023, according to its latest Form 13F filing with the Securities and Exchange Commission (SEC). Following the sale of 2,505 shares, Sapient Capital now holds a total of 312,589 shares valued at approximately $22.3 million.

This adjustment comes amid a flurry of trading activity among various institutional investors. Notably, Nuveen LLC made a substantial investment in Coca-Cola during the first quarter, acquiring shares valued at $1.5 billion. Additionally, Wellington Management Group LLP increased its position by 52.7%, bringing its total to 47,447,430 shares worth around $3.4 billion. Other notable investors include Boston Partners, which purchased new shares valued at $642.2 million, and GAMMA Investing LLC, which dramatically increased its holdings by 8,419.4%, acquiring 5,961,004 shares valued at $426.9 million.

The significant involvement of hedge funds has contributed to institutional ownership reaching 70.3% of Coca-Cola’s total shares.

Coca-Cola’s stock showed modest growth of 0.1% on Wednesday, opening at $66.27. Over the past year, the stock has fluctuated between a low of $60.62 and a high of $74.38. The company boasts a market capitalization of $285.2 billion and a price-to-earnings ratio of 23.5. Its debt-to-equity ratio stands at 1.49, with a quick ratio of 0.98 and a current ratio of 1.21.

Dividend Announcement and Analyst Ratings

Coca-Cola has announced a quarterly dividend of $0.51, scheduled for payment on October 1, 2023, to shareholders of record as of September 15, 2023. This dividend represents an annualized amount of $2.04, yielding 3.1%. The company’s payout ratio is currently reported at 72.3%.

In related developments, several analysts have updated their price targets for Coca-Cola. Royal Bank of Canada set a target of $76.00 with an “outperform” rating. Meanwhile, JPMorgan Chase & Co. raised its price target to $79.00, maintaining an “overweight” rating. Analysts from UBS Group reduced their target from $84.00 to $80.00, while BNP Paribas reaffirmed an “outperform” rating with a target of $83.00. Currently, consensus ratings indicate two analysts have a “Strong Buy” rating, while fourteen have assigned a “Buy” rating, with an average target price of $76.93.

Insider Transactions and Corporate Overview

In a separate development, insider Nikolaos Koumettis recently sold 37,396 shares at an average price of $69.10, totaling approximately $2.58 million. Following this transaction, Koumettis retains ownership of 209,513 shares valued at about $14.5 million. Currently, corporate insiders hold 0.9% of Coca-Cola’s stock.

The Coca-Cola Company is a leading global beverage manufacturer, offering a wide range of non-alcoholic beverages, including soft drinks, water, coffee, and juice. The firm also produces beverage concentrates and syrups for retail outlets worldwide.

Investors interested in the latest developments in Coca-Cola and other hedge fund activities can find comprehensive updates through financial platforms that track institutional holdings and insider trades.

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