Empowered Funds LLC Acquires New Holdings in Keurig Dr Pepper, Inc $KDP

Key Points

• Empowered Funds LLC acquired 81,452 shares of Keurig Dr Pepper during the second quarter, valued at approximately $2.7 million. Institutional investors and hedge funds collectively own 93.99% of KDP’s outstanding stock.
• KDP plans to sell its minority stake in Chobani and a Pennsylvania manufacturing facility for $925 million in pretax proceeds, with management intending to use the cash to reduce debt and improve balance-sheet flexibility.
• The company recently exceeded quarterly expectations, reporting adjusted EPS of $0.57 versus $0.54 expected and revenue of $7.31 billion versus $7.23 billion expected. Analysts maintain a “Moderate Buy” consensus, with an average price target of $34.94.

Empowered Funds LLC bought a new stake in Keurig Dr Pepper, Inc (NASDAQ:KDP - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 81,452 shares of the company's stock, valued at approximately $2,666,000.

Several other institutional investors also recently modified their holdings of the stock. BlackRock Inc. acquired a new stake in shares of Keurig Dr Pepper during the 2nd quarter valued at $4,697,645,000. State Street Corp increased its holdings in Keurig Dr Pepper by 1.6% in the 3rd quarter. State Street Corp now owns 64,594,706 shares of the company's stock worth $1,662,361,000 after purchasing an additional 986,700 shares in the last quarter. Wellington Management Group LLP increased its holdings in Keurig Dr Pepper by 37.0% in the 4th quarter. Wellington Management Group LLP now owns 57,003,344 shares of the company's stock worth $1,596,664,000 after purchasing an additional 15,393,753 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Keurig Dr Pepper by 3.9% during the fourth quarter. Geode Capital Management LLC now owns 31,802,056 shares of the company's stock valued at $887,021,000 after purchasing an additional 1,187,457 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. bought a new stake in shares of Keurig Dr Pepper during the fourth quarter worth about $727,667,000. 93.99% of the stock is currently owned by institutional investors and hedge funds.

Key Keurig Dr Pepper News

Here are the key news stories impacting Keurig Dr Pepper this week:

• Positive Sentiment: KDP will sell its minority stake in Chobani and a Pennsylvania manufacturing facility to Chobani for $925 million in pre-tax proceeds. Management said the cash will support deleveraging, which could improve balance-sheet flexibility following the JDE Peet’s acquisition. Reuters article
• Positive Sentiment: The transaction removes a non-core investment and manufacturing asset, helping KDP sharpen its focus on beverages while preserving and expanding its long-term commercial relationship with Chobani. Chobani plans to invest approximately $1.2 billion in a Pennsylvania manufacturing campus, potentially strengthening the partnership and securing future production capacity. KDP press release
• Positive Sentiment: The latest coverage characterizes the Chobani exit as favorable for KDP because it provides immediate liquidity, supports debt reduction and may make the planned business split easier to execute. MSN article
• Neutral Sentiment: Analysts maintain an average “Moderate Buy” recommendation, indicating generally constructive sentiment but not an overwhelming consensus. KDP’s most recent reported quarter also exceeded estimates, with adjusted earnings of $0.57 per share versus $0.54 expected and revenue of $7.31 billion versus $7.23 billion. Analyst recommendation article

Insider Buying and Selling at Keurig Dr Pepper

In other news, Director Aaron E. Alt bought 7,862 shares of the stock in a transaction that occurred on Tuesday, August 25th. The stock was acquired at an average price of $31.83 per share, with a total value of $250,247.46. Following the completion of the purchase, the director directly owned 7,862 shares of the company's stock, valued at approximately $250,247.46. This represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is available at this link. 0.34% of the stock is currently owned by company insiders.

Keurig Dr Pepper Stock Performance

Shares of KDP stock opened at $32.59 on Thursday. The stock has a market capitalization of $44.35 billion, a PE ratio of 32.92, a PEG ratio of 1.51 and a beta of 0.40. The business's 50 day simple moving average is $31.30 and its 200 day simple moving average is $29.56. The company has a debt-to-equity ratio of 0.74, a current ratio of 0.48 and a quick ratio of 0.28. Keurig Dr Pepper, Inc 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 released its quarterly 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 firm had revenue of $7.31 billion during the quarter, compared to analyst estimates of $7.23 billion. Keurig Dr Pepper had a net margin of 7.10% and a return on equity of 10.80%. The company's revenue was up 75.6% compared to the same quarter last year. During the same quarter last year, the business earned $0.49 EPS. As a group, research analysts forecast that Keurig Dr Pepper, Inc will post 2.3 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several research firms have recently issued reports on KDP. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Keurig Dr Pepper in a research note on Friday, August 7th. UBS Group upped their price target on shares of Keurig Dr Pepper from $38.00 to $39.00 and gave the company a "buy" rating in a research report on Friday, August 7th. Barclays lifted their price target on shares of Keurig Dr Pepper from $36.00 to $38.00 and gave the stock an "overweight" rating in a report on Monday, August 10th. Royal Bank Of Canada reissued an "outperform" rating and issued a $42.00 price objective on shares of Keurig Dr Pepper in a research note on Tuesday, August 4th. Finally, Citigroup increased their price objective on Keurig Dr Pepper from $32.00 to $37.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. Eleven investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $34.94.

Keurig Dr Pepper Company Profile

Keurig Dr Pepper NASDAQ: KDP is a North American beverage company formed in July 2018 through the combination of Keurig Green Mountain and Dr Pepper Snapple Group. The company designs, manufactures, markets and distributes a wide range of hot and cold beverages and related equipment, combining Keurig's single‑serve coffee systems with a large portfolio of carbonated and noncarbonated drink brands. It operates a network of manufacturing, packaging and distribution facilities to supply retail, foodservice and e-commerce channels across its served markets.

The company's product mix includes single‑serve coffee brewers and coffee pods under the Keurig brand as well as a broad assortment of branded beverages.

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