Keurig Dr Pepper, Inc $KDP Shares Acquired by Lone Peak Global Investors LLC

Key Points

• Lone Peak Global Investors increased its Keurig Dr Pepper stake by 6.2% in the second quarter, acquiring 63,646 shares and bringing its holdings to 1.10 million shares valued at approximately $35.9 million.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $34.94. KDP also exceeded quarterly earnings and revenue expectations, reporting $0.57 in EPS and $7.31 billion in revenue.
• Keurig Dr Pepper plans to sell its Chobani stake and a Pennsylvania manufacturing facility for $925 million, using the proceeds to reduce debt and streamline operations ahead of its planned business split.

Lone Peak Global Investors LLC increased its position in shares of Keurig Dr Pepper, Inc (NASDAQ:KDP - Free Report) by 6.2% during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 1,098,204 shares of the company's stock after buying an additional 63,646 shares during the period. Keurig Dr Pepper comprises approximately 4.9% of Lone Peak Global Investors LLC's holdings, making the stock its 2nd biggest holding. Lone Peak Global Investors LLC owned about 0.08% of Keurig Dr Pepper worth $35,944,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in KDP. NewEdge Advisors LLC boosted its holdings in Keurig Dr Pepper by 30.6% in the first quarter. NewEdge Advisors LLC now owns 15,488 shares of the company's stock valued at $530,000 after purchasing an additional 3,627 shares during the last quarter. Empowered Funds LLC raised its position in shares of Keurig Dr Pepper by 248.0% in the 1st quarter. Empowered Funds LLC now owns 69,801 shares of the company's stock valued at $2,389,000 after purchasing an additional 49,741 shares in the last quarter. Woodline Partners LP boosted its stake in shares of Keurig Dr Pepper by 49.2% during the 1st quarter. Woodline Partners LP now owns 100,870 shares of the company's stock valued at $3,452,000 after buying an additional 33,258 shares during the last quarter. Sivia Capital Partners LLC acquired a new stake in Keurig Dr Pepper in the second quarter valued at $328,000. Finally, Jump Financial LLC boosted its stake in Keurig Dr Pepper by 253.6% during the 2nd quarter. Jump Financial LLC now owns 76,089 shares of the company's stock valued at $2,516,000 after acquiring an additional 54,571 shares during the last quarter. 93.99% of the stock is owned by hedge funds and other institutional investors.

Insider Activity

In related news, Director Aaron E. Alt acquired 7,862 shares of the business's stock in a transaction that occurred on Tuesday, August 25th. The shares were acquired at an average cost of $31.83 per share, for a total transaction of $250,247.46. Following the completion of the purchase, the director directly owned 7,862 shares in the company, valued at $250,247.46. This trade represents a ∞ increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Insiders own 0.34% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently commented on the stock. Morgan Stanley started coverage on shares of Keurig Dr Pepper in a research report on Thursday, August 20th. They set an "overweight" rating and a $38.00 price target on the stock. HSBC raised Keurig Dr Pepper from a "hold" rating to a "buy" rating and set a $40.00 price target on the stock in a research report on Thursday, August 13th. Royal Bank Of Canada restated an "outperform" rating and set a $42.00 price objective on shares of Keurig Dr Pepper in a research note on Tuesday, August 4th. JPMorgan Chase & Co. lifted their price objective on shares of Keurig Dr Pepper from $33.00 to $38.00 and gave the stock an "overweight" rating in a report on Thursday, July 23rd. Finally, Barclays increased their target price 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. Eleven investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $34.94.

Trending Headlines about Keurig Dr Pepper

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 back to Chobani for $925 million in pre-tax proceeds. Management said the cash will support deleveraging, potentially improving the company’s balance sheet following its acquisition of JDE Peet’s. Keurig Dr Pepper to sell back Chobani stake for $925 million
• Positive Sentiment: The transaction streamlines KDP’s operations ahead of its planned business split, allowing the company to focus capital and management attention on its core beverage businesses while monetizing a non-core investment and asset. Keurig Dr Pepper Advances Strategic Priorities Through Enhanced Partnership with Chobani
• Positive Sentiment: Despite selling its equity stake and facility, KDP is expanding its commercial relationship with Chobani. Chobani plans to invest approximately $1.2 billion in a Pennsylvania manufacturing campus, which should support a continuing strategic supply and distribution partnership. Chobani to Invest $1.2B in Pennsylvania Manufacturing Campus
• Neutral Sentiment: The deal removes KDP’s exposure to potential future gains from Chobani, and investors will still assess execution risks surrounding the planned corporate separation and the integration of JDE Peet’s. However, the upfront proceeds and debt-reduction objective are viewed as favorable for shareholder value. Keurig Dr Pepper to Sell Chobani Stake, Pennsylvania Campus for $925 Million

Keurig Dr Pepper Stock Performance

Shares of KDP opened at $31.89 on Wednesday. The firm has a fifty day moving average of $31.28 and a 200-day moving average of $29.54. The company has a market cap of $43.40 billion, a price-to-earnings ratio of 32.21, a price-to-earnings-growth ratio of 1.42 and a beta of 0.40. 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 1 year low of $24.88 and a 1 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 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 analysts' expectations of $7.23 billion. Keurig Dr Pepper had a net margin of 7.10% and a return on equity of 10.80%. Keurig Dr Pepper's quarterly revenue was up 75.6% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.49 EPS. As a group, equities analysts anticipate that Keurig Dr Pepper, Inc will post 2.3 earnings per share for the current year.

About Keurig Dr Pepper

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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