Keurig Dr Pepper (NASDAQ:KDP) Hits New 1-Year Low - Here's Why

Key Points

• Keurig Dr Pepper shares hit a new 52-week low at $25.36, following a series of analyst downgrades and reduced price targets from major financial institutions.
• The company reported earnings of $0.49 per share for the last quarter, matching analyst expectations, with revenue exceeding forecasts at $4.16 billion, a 6.1% increase year-over-year.
• Keurig Dr Pepper's recent quarterly dividend of $0.23 represents an annual yield of 3.6%, attracting investor interest despite insider selling activity.

Shares of Keurig Dr Pepper, Inc (NASDAQ:KDP - Get Free Report) hit a new 52-week low on Monday . The stock traded as low as $25.37 and last traded at $25.36, with a volume of 404332 shares. The stock had previously closed at $25.50.

Analyst Upgrades and Downgrades

A number of analysts recently issued reports on the stock. HSBC reissued a "hold" rating and set a $30.00 target price (down previously from $42.00) on shares of Keurig Dr Pepper in a research report on Tuesday, August 26th. Piper Sandler decreased their price target on shares of Keurig Dr Pepper from $40.00 to $35.00 and set an "overweight" rating for the company in a research report on Wednesday, September 17th. BNP Paribas Exane downgraded shares of Keurig Dr Pepper from a "neutral" rating to an "underperform" rating in a report on Monday, September 22nd. BNP Paribas downgraded shares of Keurig Dr Pepper from a "neutral" rating to an "underperform" rating in a report on Monday, September 22nd. Finally, UBS Group reduced their price objective on shares of Keurig Dr Pepper from $40.00 to $35.00 and set a "buy" rating for the company in a report on Wednesday, August 27th. Ten investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Keurig Dr Pepper presently has an average rating of "Moderate Buy" and a consensus target price of $36.23.

Keurig Dr Pepper Stock Down 0.1%

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 stock has a 50-day simple moving average of $30.94 and a 200-day simple moving average of $32.79. The firm has a market capitalization of $34.61 billion, a PE ratio of 22.70, a P/E/G ratio of 1.40 and a beta of 0.47.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report) last released its earnings results on Thursday, July 24th. The company reported $0.49 earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of $0.49. The business had revenue of $4.16 billion during the quarter, compared to the consensus estimate of $4.14 billion. Keurig Dr Pepper had a return on equity of 11.05% and a net margin of 9.75%.The business's revenue for the quarter was up 6.1% on a year-over-year basis. During the same period last year, the business posted $0.45 earnings per share. Analysts forecast that Keurig Dr Pepper, Inc will post 1.92 EPS for the current year.

Keurig Dr Pepper Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, October 10th. Stockholders of record on Friday, September 26th will be given a $0.23 dividend. The ex-dividend date is Friday, September 26th. This represents a $0.92 annualized dividend and a dividend yield of 3.6%. Keurig Dr Pepper's payout ratio is 82.14%.

Insider Activity

In other news, insider Mary Beth Denooyer sold 12,000 shares of the business's stock in a transaction dated Thursday, July 17th. The stock was sold at an average price of $33.66, for a total value of $403,920.00. Following the completion of the sale, the insider owned 82,511 shares of the company's stock, valued at approximately $2,777,320.26. The trade was a 12.70% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, Director Robert James Gamgort sold 208,000 shares of the business's stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $32.90, for a total value of $6,843,200.00. Following the completion of the sale, 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. Over the last 90 days, insiders have sold 447,601 shares of company stock valued at $14,825,192. 1.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the company. Rise Advisors LLC purchased a new position in shares of Keurig Dr Pepper during the 1st quarter worth approximately $25,000. ST Germain D J Co. Inc. purchased a new position in shares of Keurig Dr Pepper during the 1st quarter worth approximately $27,000. NewSquare Capital LLC grew its holdings in shares of Keurig Dr Pepper by 94.1% during the 2nd quarter. NewSquare Capital LLC now owns 796 shares of the company's stock worth $26,000 after acquiring an additional 386 shares during the period. Chung Wu Investment Group LLC purchased a new position in shares of Keurig Dr Pepper during the 2nd quarter worth approximately $26,000. Finally, AlphaCore Capital LLC purchased a new position in shares of Keurig Dr Pepper during the 2nd quarter worth approximately $26,000. Hedge funds and other institutional investors own 93.99% of the company's stock.

Keurig Dr Pepper Company Profile

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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