What: It appears one large owner of Coca-Cola Amatil Ltd (ASX: CCL) stock has become fed up with the performance of the beverage maker and presumably doesn't expect a recovery in the company's fortunes anytime soon.
Overnight investment bank Goldman Sachs executed a trade on behalf of an unnamed global fund manager which saw the investor sell 30 million Coca-Cola Amatil Ltd shares at $9.02 per share according to a report in the Australian Financial Review.
So what: The beverage maker's shares closed yesterday at $9.26 with the block trade occurring at a 2.6% discount. Over the past year Coca-Cola Amatil's shares have fallen 23%, as a result of numerous issues which have ultimately forced the group to downgrade earnings guidance.
Now what: In the past 12 months investors would have been better off owning the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) which has gained nearly 15%, thereby far outperforming Coca-Cola Amatil. However with the stock now near a five-year low the investment metrics are starting to look appealing. At current prices the stock boasts an FY 2014 dividend yield of 5.1% and a price-to-earnings ratio of 16.1.
Rather than worrying about the seller, investors may be better off taking their lead from the reported 50 institutional buyers who snapped up the stock last night, presumably believing it represents good value at these levels.
