Keurig Dr Pepper (NASDAQ:KDP) Given New $35.00 Price Target at UBS Group

Key Points

• UBS Group has reduced its target price for Keurig Dr Pepper from $40.00 to $35.00, while maintaining a "buy" rating, suggesting a potential upside of 19.45% from the previous close.
• Keurig Dr Pepper reported quarterly earnings of $0.49 per share, meeting analysts' consensus estimates, with revenues of $4.16 billion, reflecting a 6.1% year-over-year increase.
• Insider trading activity has seen sales of over 679,000 shares by company insiders in the last quarter, indicating a significant decrease in their stakes in the company.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report) had its target price dropped by investment analysts at UBS Group from $40.00 to $35.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. UBS Group's target price would indicate a potential upside of 19.45% from the company's previous close.

Several other equities research analysts have also weighed in on the stock. Barclays increased their target price on shares of Keurig Dr Pepper from $37.00 to $39.00 and gave the stock an "overweight" rating in a report on Monday, July 28th. Deutsche Bank Aktiengesellschaft cut their target price on shares of Keurig Dr Pepper from $40.00 to $38.00 and set a "buy" rating on the stock in a report on Tuesday. JPMorgan Chase & Co. cut their target price on shares of Keurig Dr Pepper from $39.00 to $38.00 and set an "overweight" rating on the stock in a report on Thursday, July 17th. HSBC reiterated a "hold" rating and issued a $30.00 target price (down from $42.00) on shares of Keurig Dr Pepper in a report on Tuesday. Finally, Hsbc Global Res lowered shares of Keurig Dr Pepper from a "strong-buy" rating to a "hold" rating in a report on Tuesday. Eleven analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, Keurig Dr Pepper currently has an average rating of "Moderate Buy" and a consensus target price of $38.38.

Keurig Dr Pepper Trading Up 1.2%

KDP stock traded up $0.35 during midday trading on Wednesday, reaching $29.30. The company's stock had a trading volume of 5,953,524 shares, compared to its average volume of 12,285,889. Keurig Dr Pepper has a 52 week low of $28.70 and a 52 week high of $38.28. The stock has a market cap of $39.81 billion, a PE ratio of 26.11, a price-to-earnings-growth ratio of 2.22 and a beta of 0.45. The company has a quick ratio of 0.40, a current ratio of 0.64 and a debt-to-equity ratio of 0.56. The business's 50-day simple moving average is $33.59 and its 200-day simple moving average is $33.64.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report) last announced its quarterly earnings data on Thursday, July 24th. The company reported $0.49 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.49. The firm had revenue of $4.16 billion for the quarter, compared to analysts' expectations of $4.14 billion. Keurig Dr Pepper had a net margin of 9.75% and a return on equity of 11.05%. The business's revenue for the quarter was up 6.1% on a year-over-year basis. During the same period last year, the firm earned $0.45 earnings per share. As a group, sell-side analysts expect that Keurig Dr Pepper will post 1.92 EPS for the current year.

Insider Activity

In other news, insider Mary Beth Denooyer sold 12,000 shares of Keurig Dr Pepper stock in a transaction dated Thursday, July 17th. The shares were sold at an average price of $33.66, for a total value of $403,920.00. Following the completion of the transaction, the insider owned 82,511 shares of the company's stock, valued at $2,777,320.26. This trade represents a 12.70% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Robert James Gamgort sold 208,000 shares of Keurig Dr Pepper stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $32.90, for a total transaction of $6,843,200.00. Following the completion of the transaction, the director directly owned 2,292,169 shares of the company's stock, valued at approximately $75,412,360.10. This trade represents a 8.32% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 679,601 shares of company stock valued at $22,508,712 in the last quarter. Company insiders own 1.00% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. grew its position in shares of Keurig Dr Pepper by 9.8% in the 2nd quarter. Vanguard Group Inc. now owns 159,257,574 shares of the company's stock valued at $5,265,055,000 after acquiring an additional 14,244,768 shares during the period. State Street Corp boosted its holdings in shares of Keurig Dr Pepper by 11.2% during the 2nd quarter. State Street Corp now owns 63,608,006 shares of the company's stock worth $2,117,279,000 after buying an additional 6,412,494 shares during the period. JPMorgan Chase & Co. boosted its holdings in shares of Keurig Dr Pepper by 108.1% during the 1st quarter. JPMorgan Chase & Co. now owns 38,882,672 shares of the company's stock worth $1,330,565,000 after buying an additional 20,196,835 shares during the period. Invesco Ltd. boosted its holdings in shares of Keurig Dr Pepper by 43.2% during the 2nd quarter. Invesco Ltd. now owns 31,467,631 shares of the company's stock worth $1,040,320,000 after buying an additional 9,494,503 shares during the period. Finally, Geode Capital Management LLC boosted its holdings in shares of Keurig Dr Pepper by 13.5% during the 2nd quarter. Geode Capital Management LLC now owns 30,217,363 shares of the company's stock worth $994,275,000 after buying an additional 3,595,579 shares during the period. Institutional investors own 93.99% of the company's stock.

About Keurig Dr Pepper

Keurig Dr Pepper Inc owns, manufactures, and distributors beverages and single serve brewing systems in the United States and internationally. It operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International. The U.S. Refreshment Beverages segment manufactures and distributes branded concentrates, syrup, and finished beverages.

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