Keurig Dr Pepper, Inc $KDP Stock: Rakuten Investment Management Inc. Grows Position

Key Points

• Rakuten Investment Management increased its KDP stake by 11.9% in the third quarter, adding 38,497 shares and bringing its holdings to 362,284 shares, valued at about $11.2 million.
• Keurig Dr Pepper reported quarterly earnings of $0.66 per share, beating the $0.62 consensus estimate; revenue was $7.34 billion, slightly above forecasts, and up 70.6% year over year.
• Analyst sentiment was generally positive: ten analysts rated the stock Buy and nine Hold, for a consensus Moderate Buy rating and a $37.12 average price target. The company also paid a quarterly dividend of $0.23 per share.

Rakuten Investment Management Inc. increased its position in shares of Keurig Dr Pepper, Inc (NASDAQ:KDP - Free Report) by 11.9% in the 3rd quarter, according to its most recent disclosure with the SEC. The institutional investor owned 362,284 shares of the company's stock after purchasing an additional 38,497 shares during the quarter. Rakuten Investment Management Inc.'s holdings in Keurig Dr Pepper were worth $11,242,000 as of its most recent filing with the SEC.

Several other hedge funds have also recently added to or reduced their stakes in KDP. BlackRock Inc. acquired a new stake in Keurig Dr Pepper during the 2nd quarter worth $4,697,645,000. Barrow Hanley Mewhinney & Strauss LLC acquired a new stake in shares of Keurig Dr Pepper during the 2nd quarter worth approximately $767,105,000. Dimensional Fund Advisors LP raised its position in shares of Keurig Dr Pepper by 1.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 9,585,791 shares of the company's stock valued at $252,408,000 after buying an additional 103,505 shares during the period. Bank of America Corp DE acquired a new position in Keurig Dr Pepper in the second quarter valued at approximately $281,503,000. Finally, Legal & General Group Plc acquired a new position in Keurig Dr Pepper in the second quarter valued at approximately $269,336,000. 93.99% of the stock is owned by institutional investors and hedge funds.

Keurig Dr Pepper Trading Up 5.9%

NASDAQ:KDP opened at $36.79 on Thursday. The stock has a market cap of $50.06 billion, a P/E ratio of 33.75, a P/E/G ratio of 1.65 and a beta of 0.35. Keurig Dr Pepper, Inc has a 1 year low of $24.88 and a 1 year high of $37.31. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.28 and a current ratio of 0.52. The stock has a 50-day simple moving average of $32.68 and a 200-day simple moving average of $30.11.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report) last announced its quarterly earnings results on Tuesday, November 3rd. The company reported $0.66 EPS for the quarter, topping the consensus estimate of $0.62 by $0.04. Keurig Dr Pepper had a net margin of 7.12% and a return on equity of 11.27%. The firm had revenue of $7.34 billion for the quarter, compared to analyst estimates of $7.33 billion. During the same period last year, the business earned $0.54 EPS. Keurig Dr Pepper's revenue for the quarter was up 70.6% compared to the same quarter last year. As a group, analysts anticipate that Keurig Dr Pepper, Inc will post 2.30 earnings per share for the current fiscal year.

Keurig Dr Pepper Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Monday, September 28th were issued a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend was Monday, September 28th. Keurig Dr Pepper's payout ratio is presently 92.93%.

Analyst Ratings Changes

A number of equities research analysts have commented on KDP shares. Piper Sandler restated an "overweight" rating on shares of Keurig Dr Pepper in a research report on Wednesday, October 14th. Sanford C. Bernstein set a $39.00 price objective on Keurig Dr Pepper in a research report on Wednesday, July 8th. Weiss Ratings reissued a "hold (c)" rating on shares of Keurig Dr Pepper in a research report on Friday, August 7th. Wells Fargo & Company upped their target price on shares of Keurig Dr Pepper from $37.00 to $40.00 and gave the company an "overweight" rating in a research report on Wednesday. Finally, Morgan Stanley lifted their price target on shares of Keurig Dr Pepper from $38.00 to $40.00 and gave the company an "overweight" rating in a research report on Wednesday. Ten research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $37.12.

Keurig Dr Pepper News Summary

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

• Positive Sentiment: KDP reported third-quarter adjusted earnings of $0.66 per share, above analyst expectations, while revenue of $7.34 billion was roughly in line with or slightly ahead of estimates. Earnings rose from $0.54 per share a year earlier, and the company reaffirmed its 2026 outlook. Keurig Dr Pepper Q3 results and guidance
• Positive Sentiment: Analysts raised targets: UBS to $42 with a Buy rating, JPMorgan to $41 with an Overweight rating, and Morgan Stanley to $40 with an Overweight rating. Piper Sandler also lifted its target to $41. These revisions suggest several firms see further upside. UBS recommendations
• Positive Sentiment: Beverage growth and acquired JDE Peet’s contributed to strong reported sales growth; coverage also noted KDP’s energy-drink share surpassed 10%. This supports the company’s growth story beyond its legacy coffee business. Long-term investor takeaways
• Neutral Sentiment: KDP expects 2026 net sales of $25.9 billion to $26.4 billion and is planning to separate its businesses in early 2027. The separation could reshape the company, though its eventual impact is uncertain. Sales outlook and planned separation
• Negative Sentiment: Management flagged a challenging U.S. coffee environment, with consumers trading down expected to weigh on fourth-quarter coffee profitability. TD Cowen raised its target to $35 but maintained a Hold rating, implying a more cautious outlook. Coffee profit outlook

Insider Activity

In other news, insider Mary Beth Denooyer sold 12,000 shares of the business's stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $32.55, for a total value of $390,600.00. Following the completion of the sale, the insider directly owned 84,171 shares of the company's stock, valued at approximately $2,739,766.05. The trade was a 12.48% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, VP Angela Stephens sold 9,500 shares of the company's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $32.70, for a total value of $310,650.00. Following the completion of the sale, the vice president directly owned 55,786 shares of the company's stock, valued at approximately $1,824,202.20. This trade 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.

About Keurig Dr Pepper

Keurig Dr Pepper Inc NASDAQ: KDP is a beverage company that operates across coffee and packaged beverages. Its portfolio includes soft drinks, flavored waters, juices, juice drinks, ready-to-drink teas and coffees, sports and energy beverages, and mixers, as well as single-serve coffee brewing systems and pods.

The company’s brands include Keurig, Green Mountain Coffee Roasters, The Original Donut Shop, Dr Pepper, Canada Dry, Snapple, 7UP, A&W, Mott’s, Bai, CORE Hydration and Venom, among others.

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