Bank of America Corp DE Invests $281.50 Million in Keurig Dr Pepper, Inc $KDP

Key Points

• Bank of America acquired an $281.5 million stake in Keurig Dr Pepper during the second quarter, purchasing 8.6 million shares and holding approximately 0.63% of the company. Institutional investors collectively own 93.99% of KDP’s outstanding shares.
• Keurig Dr Pepper reported quarterly EPS of $0.57, exceeding estimates of $0.54, while revenue rose 75.6% year over year to $7.31 billion. The company declared a quarterly dividend of $0.23, equivalent to a 2.9% yield.
• Analysts maintain a “Moderate Buy” consensus rating, with an average price target of $35.00 compared with the stock’s reported price of $31.80. Price targets from major brokerages range from $37 to $42.

Bank of America Corp DE bought a new stake in shares of Keurig Dr Pepper, Inc (NASDAQ:KDP - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 8,600,762 shares of the company's stock, valued at approximately $281,503,000. Bank of America Corp DE owned about 0.63% of Keurig Dr Pepper as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds and other institutional investors also recently bought and sold shares of KDP. WJ Financial Advisors LLC raised its stake in shares of Keurig Dr Pepper by 1.6% in the first quarter. WJ Financial Advisors LLC now owns 27,383 shares of the company's stock valued at $721,000 after acquiring an additional 433 shares during the period. Meeder Asset Management Inc. boosted its stake in shares of Keurig Dr Pepper by 358.0% during the 1st quarter. Meeder Asset Management Inc. now owns 971 shares of the company's stock worth $26,000 after purchasing an additional 759 shares during the period. Root Financial Partners LLC boosted its stake in shares of Keurig Dr Pepper by 41.8% during the 1st quarter. Root Financial Partners LLC now owns 2,705 shares of the company's stock worth $71,000 after purchasing an additional 798 shares during the period. Stephens Inc. AR grew its holdings in Keurig Dr Pepper by 10.0% during the 4th quarter. Stephens Inc. AR now owns 8,945 shares of the company's stock valued at $251,000 after purchasing an additional 814 shares during the last quarter. Finally, Envestnet Portfolio Solutions Inc. grew its holdings in Keurig Dr Pepper by 7.1% during the 4th quarter. Envestnet Portfolio Solutions Inc. now owns 13,413 shares of the company's stock valued at $376,000 after purchasing an additional 887 shares during the last quarter. Hedge funds and other institutional investors own 93.99% of the company's stock.

Keurig Dr Pepper Stock Performance

Keurig Dr Pepper stock opened at $31.80 on Thursday. The company has a 50 day moving average price of $31.18 and a 200-day moving average price of $29.72. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.28 and a current ratio of 0.48. Keurig Dr Pepper, Inc has a fifty-two week low of $24.88 and a fifty-two week high of $33.82. The company has a market capitalization of $43.27 billion, a PE ratio of 32.12, a P/E/G ratio of 1.48 and a beta of 0.40.

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

Keurig Dr Pepper Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 9th. Investors of record on Monday, September 28th will be issued a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 2.9%. The ex-dividend date is Monday, September 28th. Keurig Dr Pepper's payout ratio is presently 92.93%.

Analysts Set New Price Targets

Several brokerages have issued reports on KDP. HSBC raised shares of Keurig Dr Pepper from a "hold" rating to a "buy" rating and set a $40.00 price objective for the company in a research note on Thursday, August 13th. Wells Fargo & Company set a $37.00 target price on Keurig Dr Pepper in a research note on Wednesday, July 1st. The Goldman Sachs Group upgraded Keurig Dr Pepper from a "neutral" rating to a "neutral" rating in a report on Thursday, June 25th. Morgan Stanley assumed coverage on Keurig Dr Pepper in a research note on Thursday, August 20th. They set an "overweight" rating and a $38.00 price target for the company. Finally, Royal Bank Of Canada restated an "outperform" rating and set a $42.00 price objective on shares of Keurig Dr Pepper in a report on Tuesday, August 4th. Twelve research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, Keurig Dr Pepper currently has an average rating of "Moderate Buy" and an average price target of $35.00.

Insider Activity at Keurig Dr Pepper

In other Keurig Dr Pepper news, Director Aaron E. Alt purchased 7,862 shares of the stock in a transaction dated Tuesday, August 25th. The stock was purchased at an average price of $31.83 per share, with a total value of $250,247.46. Following the transaction, the director owned 7,862 shares of the company's stock, valued at approximately $250,247.46. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Angela A. Stephens sold 9,500 shares of the stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $32.70, for a total transaction of $310,650.00. Following the transaction, the vice president owned 55,786 shares in the company, valued at approximately $1,824,202.20. This represents a 14.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.34% of the stock is currently owned by corporate insiders.

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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