The Coca-Cola Co (KO) Fully Supports Keurig Green Mountain Inc (GMCR) Deal


This morning it was announced that Keurig Green Mountain Inc (NASDAQ:GMCR) would be acquired by JAB Holding Company for a staggering $13.9 billion. This had us wondering that The Coca-Cola Co (NYSE:KO), a 10% stakeholder in Keurig Green Mountain Inc (NASDAQ:GMCR) thought about this sale.

As it turns out The Coca-Cola Co (NYSE:KO) is fully supportive of a deal which values the Keurig coffee machines manufacturer at a 77.9% premium over shares at Friday’s close. Coca-Cola CEO Muhtar Kent stated that his company was “fully supportive” of the deal. The stock closed at $43.29 during the last trading session. It is down 5.69% since May 4, 2015 and is uptrending. It has outperformed the S&P500 by 5.89%.

From a total of 5 analysts covering Coca-Cola (NYSE:KO) stock, 3 rate it a “Buy”, 0 a “Sell”, and 2 a “Hold”. This means that 60% of the ratings are positive. The highest target price is $49.0 while the lowest target price is $37. The mean of all analyst targets is $44.03 which is 1.71% above today’s ($43.29) stock price. Coca-Cola was the topic of 9 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. UBS maintained shares on October 22 with a “Buy” rating. Vetr upgraded KO stock in a recent report from August 31 to a “Hold” rating. Finally, Sterne Agee CRT initiated the stock with a “Buy” rating in a report they issued on a July 21.

The institutional sentiment increased to 0.83 in Q2 2015. It’s up 0.07, from 0.76 in 2015Q1. The ratio improved, as 81 funds sold all their The Coca-Cola Co shares they owned while 690 reduced their positions. 99 funds bought stakes while 540 increased their total positions. Institutions now own 2.65 billion shares which is 5.59% less than the previous share count of 2.80 billion in 2015Q1.

Allen Holding Inc Ny holds 50.51% of its total portfolio in The Coca-Cola Co, equating to 6.00 million shares. Cook & Bynum Capital Management Llc owns 915,200 shares representing 23.05% of their total US portfolio. Moreover, Capital City Trust Co Fl has 14.88% of their total portfolio invested in the company, equating to 936,723 shares. The Nebraska-based Berkshire Hathaway Inc has a total of 14.64% of their portfolio invested in the stock. Suntrust Banks Inc, a Georgia-based fund reported 45.00 million shares owned.

Since March 3, 2015, the stock had 1 buy, and 4 insider sales for a total of $12.02 million in net activity. Cummings Alexander B Jr sold 166,630 shares worth $7.13 million. Bozer Ahmet C sold 75,660 shares worth $3.18M. Gayle Helene D bought 2,000 shares worth $81,074. Eberly Ceree sold 12,400 shares worth $495,380. The insider Douglas J Alexander Jr sold 32,767 shares worth $1.30 million.

The Coca-Cola Company is a beverage company. The company has a market cap of $188.27 billion. The Firm owns or licenses and markets more than 500 nonalcoholic beverage brands, primarily sparkling beverages but also a range of still beverages, such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It has 27.75 P/E ratio. It owns and markets a range of nonalcoholic sparkling beverage brands, such as Coca-Cola, Diet Coke, Fanta and Sprite.