Keurig Dr Pepper (NASDAQ:KDP) Reaches New 12-Month Low Following Analyst Downgrade

Key Points

• Keurig Dr Pepper's stock reached a new 12-month low after being downgraded by BNP Paribas Exane from neutral to underperform, trading as low as $26.33.
• Recent insider trading includes Director Robert James Gamgort selling 208,000 shares for approximately $6.84 million, indicating a 8.32% decrease in his position.
• The company reported earnings of $0.49 per share for the last quarter, aligning with expectations, and announced a quarterly dividend of $0.23 per share with a yield of 3.5%.

Keurig Dr Pepper, Inc (NASDAQ:KDP - Get Free Report) shares hit a new 52-week low during mid-day trading on Monday after BNP Paribas Exane downgraded the stock from a neutral rating to an underperform rating. The company traded as low as $26.33 and last traded at $26.40, with a volume of 2434001 shares trading hands. The stock had previously closed at $27.11.

Other equities research analysts also recently issued reports about the company. Citigroup decreased their price objective on Keurig Dr Pepper from $41.00 to $37.00 and set a "buy" rating for the company in a report on Tuesday, September 16th. Barclays increased their price objective on Keurig Dr Pepper from $37.00 to $39.00 and gave the company an "overweight" rating in a report on Monday, July 28th. Jefferies Financial Group set a $41.00 price target on Keurig Dr Pepper in a report on Monday, August 25th. Piper Sandler decreased their price target on Keurig Dr Pepper from $40.00 to $35.00 and set an "overweight" rating for the company in a report on Wednesday, September 17th. Finally, Hsbc Global Res downgraded Keurig Dr Pepper from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 26th. Eleven analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $37.77.

Insiders Place Their Bets

In other Keurig Dr Pepper news, Director Robert James Gamgort sold 7,601 shares of the firm's stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $35.91, for a total value of $272,951.91. Following the completion of 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 legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Mary Beth Denooyer sold 12,000 shares of the firm's stock in a transaction on 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 sale, the insider directly owned 82,511 shares of the company's stock, valued at approximately $2,777,320.26. This trade represents a 12.70% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 447,601 shares of company stock valued at $14,825,192. 1.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Asset Dedication LLC increased its position in shares of Keurig Dr Pepper by 3.8% in the second quarter. Asset Dedication LLC now owns 7,922 shares of the company's stock valued at $262,000 after buying an additional 288 shares in the last quarter. Croban increased its position in Keurig Dr Pepper by 0.9% during the 2nd quarter. Croban now owns 31,849 shares of the company's stock worth $1,053,000 after purchasing an additional 294 shares in the last quarter. Auxier Asset Management increased its position in Keurig Dr Pepper by 0.4% during the 2nd quarter. Auxier Asset Management now owns 72,163 shares of the company's stock worth $2,386,000 after purchasing an additional 318 shares in the last quarter. Private Trust Co. NA increased its position in Keurig Dr Pepper by 26.4% during the 2nd quarter. Private Trust Co. NA now owns 1,624 shares of the company's stock worth $54,000 after purchasing an additional 339 shares in the last quarter. Finally, Commerce Bank boosted its stake in Keurig Dr Pepper by 1.6% in the 1st quarter. Commerce Bank now owns 21,513 shares of the company's stock worth $736,000 after buying an additional 340 shares during the last quarter. Hedge funds and other institutional investors own 93.99% of the company's stock.

Keurig Dr Pepper Trading Down 4.3%

The business has a 50 day simple moving average of $31.53 and a 200-day simple moving average of $32.98. The company has a current ratio of 0.64, a quick ratio of 0.40 and a debt-to-equity ratio of 0.56. The stock has a market capitalization of $35.25 billion, a price-to-earnings ratio of 23.17, a price-to-earnings-growth ratio of 1.49 and a beta of 0.47.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report) last issued its quarterly 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. Keurig Dr Pepper had a return on equity of 11.05% and a net margin of 9.75%.The firm had revenue of $4.16 billion for the quarter, compared to analyst estimates of $4.14 billion. During the same period last year, the company earned $0.45 EPS. The firm's quarterly revenue was up 6.1% on a year-over-year basis. On average, equities analysts predict that Keurig Dr Pepper, Inc will post 1.92 earnings per share for the current year.

Keurig Dr Pepper Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, October 10th. Stockholders of record on Friday, September 26th will be paid a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 3.5%. The ex-dividend date of this dividend is Friday, September 26th. Keurig Dr Pepper's payout ratio is currently 82.14%.

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.