Keurig Dr Pepper Sees Unusually Large Options Volume (NASDAQ:KDP)

Key Points

• Investors bought 6,624 call options on Keurig Dr Pepper on Wednesday, about an 81% increase versus the average volume of 3,662 calls, indicating unusually heavy call activity.
• Analyst views are mixed: several brokerages cut price targets (e.g., Deutsche Bank and Barclays to $28) while Zacks upgraded to a Strong Buy; the consensus rating is a Moderate Buy with an average price target of $31.31.
• KDP trades around $26.86 with a $36.5B market cap, a P/E near 17.6 and a 3.4% dividend yield; the company slightly beat recent EPS and revenue estimates and set FY2026 EPS guidance of 2.130–2.170.

Keurig Dr Pepper, Inc (NASDAQ:KDP - Get Free Report) was the recipient of some unusual options trading activity on Wednesday. Investors bought 6,624 call options on the company. This represents an increase of approximately 81% compared to the average volume of 3,662 call options.

Analysts Set New Price Targets

A number of brokerages have recently commented on KDP. Deutsche Bank Aktiengesellschaft dropped their target price on shares of Keurig Dr Pepper from $34.00 to $28.00 and set a "hold" rating on the stock in a report on Monday, March 30th. UBS Group lowered their target price on shares of Keurig Dr Pepper from $36.00 to $32.00 and set a "buy" rating on the stock in a research note on Tuesday, April 7th. Zacks Research upgraded shares of Keurig Dr Pepper from a "hold" rating to a "strong-buy" rating in a research note on Friday, April 17th. Barclays lowered their target price on shares of Keurig Dr Pepper from $32.00 to $28.00 and set an "equal weight" rating on the stock in a research note on Tuesday, April 14th. Finally, Evercore raised shares of Keurig Dr Pepper to a "hold" rating in a research report on Monday, April 6th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and nine have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Keurig Dr Pepper currently has a consensus rating of "Moderate Buy" and an average price target of $31.31.

Hedge Funds Weigh In On Keurig Dr Pepper

Several institutional investors have recently made changes to their positions in KDP. Root Financial Partners LLC purchased a new stake in shares of Keurig Dr Pepper during the third quarter worth about $26,000. Salomon & Ludwin LLC purchased a new stake in shares of Keurig Dr Pepper during the fourth quarter worth about $26,000. Clearstead Trust LLC grew its stake in shares of Keurig Dr Pepper by 98.3% during the third quarter. Clearstead Trust LLC now owns 1,081 shares of the company's stock worth $28,000 after acquiring an additional 536 shares during the last quarter. Mather Group LLC. purchased a new stake in shares of Keurig Dr Pepper during the third quarter worth about $30,000. Finally, SBI Securities Co. Ltd. grew its stake in shares of Keurig Dr Pepper by 71.7% during the third quarter. SBI Securities Co. Ltd. now owns 1,159 shares of the company's stock worth $30,000 after acquiring an additional 484 shares during the last quarter. Hedge funds and other institutional investors own 93.99% of the company's stock.

Keurig Dr Pepper Price Performance

KDP traded up $0.42 during trading on Wednesday, reaching $26.86. 2,750,929 shares of the company traded hands, compared to its average volume of 10,602,673. The company has a debt-to-equity ratio of 0.51, a quick ratio of 0.43 and a current ratio of 0.64. Keurig Dr Pepper has a 12-month low of $24.88 and a 12-month high of $35.94. The firm has a fifty day simple moving average of $27.62 and a 200 day simple moving average of $27.61. The company has a market cap of $36.50 billion, a P/E ratio of 17.56, a PEG ratio of 1.34 and a beta of 0.35.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report) last announced its quarterly earnings data on Tuesday, February 24th. The company reported $0.60 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.59 by $0.01. The business had revenue of $4.50 billion during the quarter, compared to analyst estimates of $4.35 billion. Keurig Dr Pepper had a net margin of 12.52% and a return on equity of 11.14%. The company's revenue was up 10.6% on a year-over-year basis. During the same period last year, the firm posted $0.58 EPS. Keurig Dr Pepper has set its FY 2026 guidance at 2.130-2.170 EPS. On average, equities analysts forecast that Keurig Dr Pepper will post 2.27 EPS for the current year.

Keurig Dr Pepper Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, April 10th. Stockholders of record on Friday, March 27th were given a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a dividend yield of 3.4%. The ex-dividend date was Friday, March 27th. Keurig Dr Pepper's dividend payout ratio (DPR) is 60.13%.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.