American multinational beverage giant Coca-Cola’s (KO:US) stock has been trading sideways for a good part of the last two years. Dividend hunters and investors usually look for a dip to add to their existing holdings but KO was a stock that refused to give them a chance, just like any other solid company.
Up until the recent bear run in October, the stock boasted a 52-week low of around $52, a mark it didn’t look like revisiting any time soon. But October changed things. The whole market took a correction and this time did not show any mercy to KO. The stock dipped back to the $52 mark and people started talking about how it was an overvalued stock.
In some cases, there was even a comparison with Pepsi, which boasts a more diverse portfolio of products and better growth numbers.
As this wave of selling arrived, the politicians joined in. Most notably, Pete Ricketts sold a massive $100,000 to $250,000 worth of KO stock. It was a timely sale that came just before the dip to a new 52-week low.
His fellow lawmaker Katherine Clark wasn’t that fortunate with the timing of her sale. She just disclosed the sale of $15,000 - $50,000k worth of Coca-Cola stock. Her selling price was $52.88. The transaction was carried out on Monday the 9th of October. The stock had hit a new 52-week low of $51.55 the previous Friday, the 6th of October. The transaction had ‘panic sell’ written all over it.
The company announced its quarterly results on the 24th of October and posted a beat on both EPS and revenue. Despite the inflation and tough macroeconomic environment, people have not stopped consuming their products. All of their drink divisions reported growth in volume. Clearly, the 137-year-old legacy is intact and the sellers have been punished.
The stock has bounced back really well since it revisited its 52-week low. It was trading at $57 in pre-market trading today.