Keurig Dr Pepper (NASDAQ:KDP) Sets New 1-Year Low - What's Next?

Key Points

• Keurig Dr Pepper shares hit a new 52-week low of $25.26 during trading, with recent trading volume of 13,677,440 shares as analysts adjust their price targets.
• Wells Fargo lowered its target price for the stock from $40.00 to $33.00, while other firms also adjusted their ratings, resulting in a consensus target price of $35.14.
• The company recently declared a quarterly dividend of $0.23, representing a 3.6% annual yield, with a dividend payout ratio of 82.14%.

Shares of Keurig Dr Pepper, Inc (NASDAQ:KDP - Get Free Report) reached a new 52-week low during trading on Monday . The stock traded as low as $25.26 and last traded at $25.33, with a volume of 13677440 shares trading hands. The stock had previously closed at $25.84.

Analysts Set New Price Targets

KDP has been the subject of a number of recent research reports. Wells Fargo & Company reduced their target price on shares of Keurig Dr Pepper from $40.00 to $33.00 and set an "overweight" rating for the company in a research report on Thursday, September 25th. BNP Paribas cut shares of Keurig Dr Pepper from a "neutral" rating to an "underperform" rating in a research report on Monday, September 22nd. JPMorgan Chase & Co. reduced their target price on shares of Keurig Dr Pepper from $39.00 to $38.00 and set an "overweight" rating for the company in a research report on Thursday, July 17th. Jefferies Financial Group set a $41.00 price objective on shares of Keurig Dr Pepper in a report on Monday, August 25th. Finally, HSBC reissued a "hold" rating and issued a $30.00 price objective (down previously from $42.00) on shares of Keurig Dr Pepper in a report on Tuesday, August 26th. Ten analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $35.14.

Keurig Dr Pepper Trading Down 2.1%

The company has a debt-to-equity ratio of 0.56, a current ratio of 0.64 and a quick ratio of 0.40. The company has a market cap of $34.37 billion, a PE ratio of 22.59, a price-to-earnings-growth ratio of 1.42 and a beta of 0.43. The company's 50 day simple moving average is $30.16 and its two-hundred day simple moving average is $32.51.

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

Keurig Dr Pepper Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Friday, October 10th. Investors of record on Friday, September 26th will be issued a $0.23 dividend. The ex-dividend date of this dividend is Friday, September 26th. This represents a $0.92 annualized dividend and a yield of 3.6%. Keurig Dr Pepper's dividend payout ratio (DPR) is 82.14%.

Insider Activity at Keurig Dr Pepper

In other Keurig Dr Pepper news, Director Robert James Gamgort sold 7,601 shares of the firm's stock in a transaction that occurred on Wednesday, August 20th. The shares were sold at an average price of $35.91, for a total transaction of $272,951.91. Following the sale, the director owned 2,284,568 shares of the company's stock, valued at approximately $82,038,836.88. This trade represents a 0.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Mary Beth Denooyer sold 12,000 shares of the firm's stock in a transaction that occurred on Thursday, July 17th. The stock was sold at an average price of $33.66, for a total transaction of $403,920.00. Following the sale, the insider directly owned 82,511 shares in the company, valued at approximately $2,777,320.26. The trade was a 12.70% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders sold 435,601 shares of company stock worth $14,421,512. 1.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Keurig Dr Pepper

Hedge funds have recently modified their holdings of the business. Amundi grew its position in Keurig Dr Pepper by 7.7% in the 1st quarter. Amundi now owns 4,404,145 shares of the company's stock valued at $156,920,000 after buying an additional 315,290 shares during the last quarter. Dynamic Technology Lab Private Ltd grew its position in Keurig Dr Pepper by 61.8% in the 1st quarter. Dynamic Technology Lab Private Ltd now owns 60,630 shares of the company's stock valued at $2,075,000 after buying an additional 23,167 shares during the last quarter. LBP AM SA grew its position in Keurig Dr Pepper by 1,772.6% in the 2nd quarter. LBP AM SA now owns 549,178 shares of the company's stock valued at $18,156,000 after buying an additional 519,851 shares during the last quarter. State of Alaska Department of Revenue grew its position in Keurig Dr Pepper by 9.0% in the 2nd quarter. State of Alaska Department of Revenue now owns 152,411 shares of the company's stock valued at $5,038,000 after buying an additional 12,530 shares during the last quarter. Finally, China Universal Asset Management Co. Ltd. grew its position in Keurig Dr Pepper by 51.8% in the 1st quarter. China Universal Asset Management Co. Ltd. now owns 33,510 shares of the company's stock valued at $1,154,000 after buying an additional 11,435 shares during the last quarter. 93.99% of the stock is currently owned by hedge funds and other institutional investors.

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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