T. Rowe Price Investment Management Inc. Invests $727.67 Million in Keurig Dr Pepper, Inc $KDP

Key Points

• T. Rowe Price Investment Management disclosed a new fourth-quarter position in Keurig Dr Pepper, buying 25.98 million shares worth about $727.7 million. The stake represented 1.91% of KDP based on its latest SEC filing.
• Keurig Dr Pepper reported quarterly EPS of $0.39, topping analyst expectations, while revenue came in at $3.98 billion and rose 9.4% year over year. Analysts currently expect the company to earn $2.29 EPS for the full year.
• The company also declared a quarterly dividend of $0.23 per share, or $0.92 annually, implying a 3.0% yield. Meanwhile, Wall Street’s overall view remains mixed, with an average rating of Hold and a consensus price target of $32.00.

T. Rowe Price Investment Management Inc. bought a new position in shares of Keurig Dr Pepper, Inc (NASDAQ:KDP - Free Report) during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor bought 25,978,817 shares of the company's stock, valued at approximately $727,667,000. T. Rowe Price Investment Management Inc. owned 1.91% of Keurig Dr Pepper as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds have also recently added to or reduced their stakes in KDP. Norges Bank acquired a new position in Keurig Dr Pepper during the 4th quarter worth approximately $568,361,000. Capital International Investors raised its holdings in shares of Keurig Dr Pepper by 1,987.4% in the 4th quarter. Capital International Investors now owns 16,858,031 shares of the company's stock valued at $472,193,000 after purchasing an additional 16,050,437 shares in the last quarter. Wellington Management Group LLP raised its holdings in shares of 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 valued at $1,596,664,000 after purchasing an additional 15,393,753 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of Keurig Dr Pepper by 285.3% during the 4th quarter. AQR Capital Management LLC now owns 11,636,027 shares of the company's stock worth $325,925,000 after purchasing an additional 8,615,869 shares during the last quarter. Finally, Price T Rowe Associates Inc. MD grew its stake in shares of Keurig Dr Pepper by 30.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 12,049,426 shares of the company's stock worth $337,505,000 after purchasing an additional 2,845,034 shares in the last quarter. Institutional investors and hedge funds own 93.99% of the company's stock.

Keurig Dr Pepper Price Performance

Shares of NASDAQ:KDP opened at $30.76 on Friday. The company has a 50-day simple moving average of $28.99 and a 200-day simple moving average of $28.36. Keurig Dr Pepper, Inc has a one year low of $24.88 and a one year high of $35.94. The company has a debt-to-equity ratio of 0.72, a quick ratio of 2.12 and a current ratio of 2.31. The stock has a market capitalization of $41.85 billion, a price-to-earnings ratio of 22.79, a PEG ratio of 1.41 and a beta of 0.41.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report) last released its quarterly earnings results on Thursday, April 23rd. The company reported $0.39 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.37 by $0.02. The firm had revenue of $3.98 billion for the quarter, compared to analyst estimates of $7.23 billion. Keurig Dr Pepper had a return on equity of 10.51% and a net margin of 10.81%.The business's revenue was up 9.4% on a year-over-year basis. During the same quarter last year, the company posted $0.42 earnings per share. On average, analysts predict that Keurig Dr Pepper, Inc will post 2.29 EPS for the current year.

Keurig Dr Pepper Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, July 10th. Stockholders of record on Friday, June 26th will be issued a $0.23 dividend. The ex-dividend date of this dividend is Friday, June 26th. This represents a $0.92 dividend on an annualized basis and a dividend yield of 3.0%. Keurig Dr Pepper's payout ratio is presently 68.15%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on KDP. Weiss Ratings upgraded Keurig Dr Pepper from a "hold (c-)" rating to a "hold (c)" rating in a research note on Monday, May 11th. Deutsche Bank Aktiengesellschaft dropped their price objective on Keurig Dr Pepper from $34.00 to $28.00 and set a "hold" rating on the stock in a report on Monday, March 30th. BNP Paribas Exane raised Keurig Dr Pepper from an "underperform" rating to a "neutral" rating and set a $28.00 target price on the stock in a research report on Wednesday, April 22nd. Zacks Research downgraded Keurig Dr Pepper from a "strong-buy" rating to a "hold" rating in a report on Monday, May 18th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Keurig Dr Pepper from $32.00 to $33.00 and gave the stock an "overweight" rating in a report on Friday, April 24th. Seven investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $32.00.

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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