Keurig Dr Pepper's (KDP) Buy Rating Reiterated at Argus

Key Points

• Argus reaffirmed its “buy” rating on Keurig Dr Pepper and set a $36 price target, implying approximately 15.6% upside from the prior close.
• Analyst sentiment remains positive overall, with 12 buy ratings and eight holds, producing a consensus “Moderate Buy” rating and an average target price of $35.
• Keurig Dr Pepper recently exceeded quarterly expectations, reporting $0.57 in EPS versus $0.54 expected and $7.31 billion in revenue; sales increased 75.6% year over year.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report)'s stock had its "buy" rating reaffirmed by analysts at Argus in a research note issued to investors on Tuesday, Benzinga reports. They presently have a $36.00 target price on the stock. Argus' price objective would indicate a potential upside of 15.57% from the stock's previous close.

Other equities analysts also recently issued research reports about the company. Zacks Research downgraded Keurig Dr Pepper from a "strong-buy" rating to a "hold" rating in a report on Monday, May 18th. Wells Fargo & Company set a $37.00 price objective on shares of Keurig Dr Pepper in a research report on Wednesday, July 1st. Citigroup upped their price objective on shares of Keurig Dr Pepper from $32.00 to $37.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. Barclays raised their target price on shares of Keurig Dr Pepper from $36.00 to $38.00 and gave the stock an "overweight" rating in a research report on Monday, August 10th. Finally, UBS Group lifted their target price on shares of Keurig Dr Pepper from $38.00 to $39.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Twelve analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $35.00.

Keurig Dr Pepper Trading Down 1.4%

Shares of NASDAQ:KDP traded down $0.43 during midday trading on Tuesday, hitting $31.15. 182,667 shares of the stock traded hands, compared to its average volume of 11,755,275. The company has a quick ratio of 0.28, a current ratio of 0.48 and a debt-to-equity ratio of 0.74. The business's 50 day moving average is $31.16 and its two-hundred day moving average is $29.70. The stock has a market capitalization of $42.39 billion, a PE ratio of 31.73, a P/E/G ratio of 1.48 and a beta of 0.40. Keurig Dr Pepper has a one year low of $24.88 and a one year high of $33.82.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.54 by $0.03. The company had revenue of $7.31 billion for the quarter, compared to analysts' expectations of $7.23 billion. Keurig Dr Pepper had a return on equity of 10.80% and a net margin of 7.10%.Keurig Dr Pepper's quarterly revenue was up 75.6% on a year-over-year basis. During the same period last year, the firm earned $0.49 earnings per share. As a group, research analysts forecast that Keurig Dr Pepper will post 2.3 earnings per share for the current year.

Insider Activity

In other news, insider Mary Beth Denooyer sold 12,000 shares of the business's stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $32.55, for a total transaction of $390,600.00. Following the sale, the insider owned 84,171 shares in the company, valued at approximately $2,739,766.05. The trade was a 12.48% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Angela Stephens sold 9,500 shares of the company's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $32.70, for a total transaction of $310,650.00. Following the completion of the sale, the vice president directly owned 55,786 shares in the company, valued at $1,824,202.20. This represents a 14.55% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Company insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On Keurig Dr Pepper

Hedge funds and other institutional investors have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. lifted its position in shares of Keurig Dr Pepper by 290.3% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 52,646 shares of the company's stock valued at $1,475,000 after acquiring an additional 39,156 shares in the last quarter. PNC Financial Services Group Inc. grew its position in shares of Keurig Dr Pepper by 47.5% during the fourth quarter. PNC Financial Services Group Inc. now owns 179,570 shares of the company's stock worth $5,030,000 after purchasing an additional 57,797 shares in the last quarter. Fidelity National Financial Inc. purchased a new stake in shares of Keurig Dr Pepper during the fourth quarter worth about $15,349,000. Anchor Capital Advisors LLC raised its stake in Keurig Dr Pepper by 13.8% during the 4th quarter. Anchor Capital Advisors LLC now owns 1,297,998 shares of the company's stock valued at $36,357,000 after purchasing an additional 157,438 shares during the period. Finally, Landscape Capital Management L.L.C. raised its stake in Keurig Dr Pepper by 1,399.8% during the 4th quarter. Landscape Capital Management L.L.C. now owns 194,777 shares of the company's stock valued at $5,456,000 after purchasing an additional 181,790 shares during the period. Hedge funds and other institutional investors own 93.99% of the company's stock.

Keurig Dr Pepper Company Profile

Keurig Dr Pepper Inc NASDAQ: KDP is a beverage company that operates across the refreshment beverage and coffee categories. The company develops, manufactures, distributes and markets a broad portfolio of soft drinks, flavored beverages, juices, water and mixers, as well as single-serve coffee products and brewing systems.

Its beverage portfolio includes brands such as Dr Pepper, Canada Dry, 7UP, A&W, Snapple, Mott's, Bai and CORE Hydration. In coffee, Keurig Dr Pepper offers Keurig brewing systems, pods and related products under brands including Green Mountain Coffee Roasters and The Original Donut Shop.

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