Coca-Cola: 3 Different Insiders Have Purchased Shares This Month

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 |  About: The Coca-Cola Company (KO), Includes: DPS, NSRGY, PEP
by: Markus Aarnio

In this article, I will feature one consumer stock that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:

  1. The stock is purchased by three or more insiders within one month.
  2. The stock is sold by no insiders in the month of intensive purchasing.
  3. At least two purchasers increased their holdings by more than 10%.

The Coca-Cola Company (NYSE:KO) engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide.

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Insider buying during the last 30 days

Here is a table of Coca-Cola's insider-trading activity during the last 30 days.

Name Title Trade Date Shares Purchased Current Ownership Increase In Shares
Muhtar Kent CEO Feb 25 10,500 262,118 shares +4.2%
Maria Elena Lagomasino Director Feb 24 7,981 23,631 shares +51.0%
Ana Botin Director Feb 24 2,500 2,500 shares from 0 to 2,500
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There have been 20,981 shares purchased by insiders during the last 30 days.

Insider buying by calendar month

Here is a table of Coca-Cola's insider-trading activity by calendar month.

Month

Insider buying / shares

Insider selling / shares

February 2014 20,981 0
January 2014 0 0
December 2013 0 0
November 2013 0 142,000
October 2013 0 0
September 2013 0 0
August 2013 0 6,200
July 2013 0 0
June 2013 0 0

May 2013

0

211,574

April 2013

0 631,334

March 2013

600

923,976

February 2013

0 260,825

January 2013

0

0
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There have been 21,581 shares purchased, and there have been 2,175,909 shares sold by insiders since January 2013. The month of February 2014 has seen the most insider buying.

Financials

Coca-Cola reported the full-year 2013 financial results on February 18 with the following highlights:

Revenue $46.9 billion
Net income $8.6 billion
Cash $20.3 billion
Debt $37.1 billion
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The insiders purchased the shares after this report.

Competition

Coca-Cola's competitors include Dr Pepper Snapple Group (NYSE:DPS), Nestlé (OTCPK:NSRGY), and PepsiCo (NYSE:PEP). Here is a table comparing these companies.

Company KO DPS NSRGY PEP
Market Cap: 167.50B 10.20B 238.90B 119.68B
Employees: N/A N/A 333,000 N/A
Qtrly Rev Growth (yoy): -0.04 -0.01 0.00 0.01
Revenue: 46.85B 6.00B 98.97B 66.42B
Gross Margin: 0.61 0.58 0.48 0.53
EBITDA: 13.06B 1.35B 18.55B 12.34B
Operating Margin: 0.24 0.19 0.16 0.15
Net Income: 8.58B 624.00M 10.73B 6.73B
EPS: 1.90 3.05 3.35 4.32
P/E: 19.93 16.91 22.33 18.20
PEG (5 yr expected): 2.77 2.24 5.19 2.21
P/S: 3.56 1.70 2.41 1.80
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Coca-Cola has the highest gross margin among these four companies.

Here is a table of these competitors' insider-trading activities this year.

Company Insider buying / shares Insider selling / shares
DPS 0 129,145
NSRGY N/A N/A
PEP 0 7,709
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Only Coca-Cola has seen intensive insider buying during the last 30 days.

Conclusion

There have been three different insiders buying Coca-Cola, and there have not been any insiders selling Coca-Cola during the last 30 days. Two of these three insiders increased their holdings by more than 10%. Coca-Cola has an insider ownership of 0.30%.

The insiders purchased their shares at prices ranging from $37.25 to $37.91. I believe Coca-Cola could be a good pick below $38 based on the intensive insider buying.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in KO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.