Molson Coors Brewing (TAP) Rating Reiterated by Zacks Investment Research

Zacks Investment Research reissued their hold rating on shares of Molson Coors Brewing (NYSE:TAP) in a research note issued to investors on Friday morning.

According to Zacks, “Molson Coors surpassed the industry in a month, courtesy of solid focus on cost savings and premiumization of its portfolio. Moreover, the company’s restructuring initiatives to reduce costs and boost profitability bode well. In the third quarter of 2018, the company’s top and bottom lines exceeded estimates, marking the second straight sales and earnings beat. Both the metrics also grew year over year driven by its First Choice strategy along with other strategic initiatives and improved performance at most segments. Favorable global pricing and higher financial volumes as well as favorable mix in Europe also aided its quarterly performance. Management raised its cost-savings target for 2017-2019 period. However, softness in its Canada segment was a deterrent. Persistent softness in U.S. beer volumes due to tough industry conditions and adverse currency also remain concerns. Also, rising input costs remain threat to bottom line.”

Several other research firms have also commented on TAP. Morgan Stanley raised their target price on shares of Molson Coors Brewing from $69.00 to $74.00 and gave the company an equal weight rating in a report on Thursday, August 2nd. Susquehanna Bancshares raised their price target on shares of Molson Coors Brewing from $80.00 to $84.00 and gave the company a positive rating in a research note on Thursday, August 2nd. Citigroup reduced their price target on shares of Molson Coors Brewing from $80.00 to $78.00 and set a buy rating on the stock in a research note on Monday, August 27th. Jefferies Financial Group started coverage on shares of Molson Coors Brewing in a research note on Friday, September 7th. They issued an underperform rating and a $55.00 price target on the stock. Finally, ValuEngine upgraded shares of Molson Coors Brewing from a strong sell rating to a sell rating in a research note on Thursday, November 1st. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and seven have given a buy rating to the stock. The stock has an average rating of Hold and an average price target of $75.36.

TAP stock opened at $66.39 on Friday. The company has a debt-to-equity ratio of 0.64, a quick ratio of 0.49 and a current ratio of 0.64. Molson Coors Brewing has a 12 month low of $55.52 and a 12 month high of $85.86. The stock has a market capitalization of $13.97 billion, a price-to-earnings ratio of 14.85, a PEG ratio of 2.87 and a beta of 0.56.

Molson Coors Brewing (NYSE:TAP) last released its earnings results on Wednesday, October 31st. The company reported $1.84 EPS for the quarter, beating the consensus estimate of $1.59 by $0.25. Molson Coors Brewing had a net margin of 12.05% and a return on equity of 7.58%. The firm had revenue of $2.93 billion for the quarter, compared to analyst estimates of $2.92 billion. During the same period last year, the firm earned $1.34 EPS. The business’s quarterly revenue was up 1.8% compared to the same quarter last year. Equities research analysts forecast that Molson Coors Brewing will post 4.97 earnings per share for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Monday, December 17th. Stockholders of record on Friday, November 30th will be paid a $0.41 dividend. The ex-dividend date is Thursday, November 29th. This represents a $1.64 dividend on an annualized basis and a dividend yield of 2.47%. Molson Coors Brewing’s payout ratio is currently 36.69%.

In other news, insider Krishnan Anand sold 2,595 shares of the firm’s stock in a transaction that occurred on Monday, October 1st. The shares were sold at an average price of $61.42, for a total value of $159,384.90. Following the sale, the insider now directly owns 49,578 shares in the company, valued at approximately $3,045,080.76. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Over the last 90 days, insiders sold 7,785 shares of company stock worth $499,512. 2.55% of the stock is currently owned by corporate insiders.

Several institutional investors and hedge funds have recently bought and sold shares of the company. Truvestments Capital LLC acquired a new stake in Molson Coors Brewing during the 3rd quarter worth approximately $105,000. TLP Group LLC acquired a new stake in Molson Coors Brewing during the 3rd quarter worth approximately $124,000. Independent Order of Foresters acquired a new stake in Molson Coors Brewing during the 2nd quarter worth approximately $141,000. Strategic Wealth Partners Ltd. acquired a new stake in Molson Coors Brewing during the 2nd quarter worth approximately $214,000. Finally, National Asset Management Inc. acquired a new stake in Molson Coors Brewing during the 3rd quarter worth approximately $206,000. Institutional investors own 73.49% of the company’s stock.

About Molson Coors Brewing

Molson Coors Brewing Company manufactures and sells beer and other beverage products in the United States, Canada, Europe, and internationally. It sells various products under the Coors Light, Miller Lite, Coors Banquet, the Blue Moon Brewing Company brands, the Jacob Leinenkugel Brewing Company brands, Keystone, Icehouse, Mickey's, Miller 64, Miller Genuine Draft, Miller High Life, Milwaukee's Best, Hamm's, Olde English 800, Steel Reserve, Crispin, Smith & Forge, Redd's, the Henry's Hard Soda, and Steel Reserve Alloy Series brands.

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