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Monster Beverage Announces Stock Split

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Price movement

Monster Beverage (MNST) has a market cap of $27.8 billion. It fell 0.62% to close at $145.08 per share on October 14, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -0.52%, -0.87% and -2.6%, respectively, on the same day. MNST is trading 0.94% below its 20-day moving average, 4.6% below its 50-day moving average, and 0.10% above its 200-day moving average.

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Related ETF and peers

The Guggenheim S&P Equal Weight Consumer Staples ETF (RHS) invests 2.5% of its holdings in Monster Beverage. The ETF tracks an equal-weighted index of large-cap US consumer staples stocks drawn from the S&P 500. The YTD price movement of RHS was 4.2% on October 14.

The market caps of Monster Beverage’s competitors are as follows:

  • PepsiCo (PEP) — $153.8 billion
  • The Coca-Cola Company (KO) — $179.8 billion
  • Dr Pepper Snapple Group (DPS) — $16.3 billion

Latest news on Monster Beverage

In a press release, Monster Beverage (MNST) announced that “its Board of Directors has approved a 3-for-1 split of its common stock which will be effected in the form of a 200% stock dividend.  The additional shares will be distributed on November 9, 2016 to stockholders of record at the close of business (Eastern Time) on October 26, 2016.  The Company anticipates its common stock to begin trading at the split-adjusted price on November 10, 2016.” It added that “upon completion of the stock split, the number of outstanding shares of the Company’s common stock will triple to approximately 571 million shares.”

Performance of Monster Beverage in 2Q16

Monster Beverage reported 2Q16 net sales of $827.5 million, a rise of 19.3% over the $693.7 million reported in 2Q15. The company’s gross profit margin rose 10.0% and its operating income fell 21.2% between 2Q15 and 2Q16.

Its net income and EPS (earnings per share) fell to $184.2 million and $0.90, respectively, in 2Q16, compared with $229.0 million and $1.26 in 2Q15. Monster Beverage’s cash and cash equivalents fell 80.0% and its inventories rose 11.7% between 4Q15 and 2Q16. Its current ratio fell to 2.6x in 2Q16, compared with 7.0x in 4Q15. Next, let’s take a look at Hershey (HSY).

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