Keurig Dr Pepper (NASDAQ:KDP) Earns "Hold" Rating from HSBC

Key Points

• HSBC reaffirmed a "hold" rating for Keurig Dr Pepper (KDP) and lowered its target price to $30.00, indicating a potential downside from the previous close.
• Investment analysts have diverse views on KDP, with one Strong Buy, eleven Buy ratings, and three Hold ratings, resulting in a consensus price target of $38.85.
• Despite a recent drop in price targets from multiple analysts, KDP reported 6.1% year-over-year revenue growth and met earnings expectations in its latest quarterly report.

HSBC reissued their hold rating on shares of Keurig Dr Pepper (NASDAQ:KDP - Free Report) in a report released on Tuesday, Marketbeat reports. HSBC currently has a $30.00 target price on the stock, down from their prior target price of $42.00.

Several other equities analysts have also recently issued reports on KDP. Barclays lifted their price objective on shares of Keurig Dr Pepper from $37.00 to $39.00 and gave the stock an "overweight" rating in a research note on Monday, July 28th. JPMorgan Chase & Co. decreased their target price on Keurig Dr Pepper from $39.00 to $38.00 and set an "overweight" rating on the stock in a report on Thursday, July 17th. Finally, UBS Group reduced their target price on Keurig Dr Pepper from $42.00 to $40.00 and set a "buy" rating for the company in a report on Thursday, July 17th. Eleven analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $38.38.

Keurig Dr Pepper Price Performance

KDP traded down $0.20 during trading on Tuesday, reaching $29.09. The stock had a trading volume of 22,200,454 shares, compared to its average volume of 12,628,653. The firm has a market capitalization of $39.52 billion, a price-to-earnings ratio of 25.97, a price-to-earnings-growth ratio of 1.63 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. Keurig Dr Pepper has a 1-year low of $28.70 and a 1-year high of $38.28. The stock has a 50 day moving average of $33.45 and a two-hundred day moving average of $33.60.

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 for the quarter, hitting analysts' consensus estimates of $0.49. The firm 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 firm's revenue for the quarter was up 6.1% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.45 earnings per share. As a group, equities analysts anticipate that Keurig Dr Pepper will post 1.92 EPS for the current fiscal year.

Insider Activity

In other news, Director Robert James Gamgort sold 208,000 shares of the company's stock in a transaction dated Friday, August 1st. The stock was sold at an average price of $32.90, for a total value of $6,843,200.00. Following the transaction, the director owned 2,292,169 shares in the company, valued at $75,412,360.10. This represents a 8.32% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director De Ven Michael G. Van bought 15,000 shares of the company's stock in a transaction dated Wednesday, June 4th. The stock was acquired at an average price of $33.20 per share, for a total transaction of $498,000.00. Following the acquisition, the director directly owned 15,000 shares in the company, valued at $498,000. This trade represents a ∞ increase in their ownership of the stock. The disclosure for this purchase can be found here. Insiders have sold 679,601 shares of company stock worth $22,508,712 in the last 90 days. Company insiders own 0.40% of the company's stock.

Institutional Investors Weigh In On Keurig Dr Pepper

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Orion Porfolio Solutions LLC raised its stake in shares of Keurig Dr Pepper by 7.4% during the 2nd quarter. Orion Porfolio Solutions LLC now owns 134,979 shares of the company's stock worth $4,462,000 after purchasing an additional 9,248 shares in the last quarter. Thrivent Financial for Lutherans raised its stake in shares of Keurig Dr Pepper by 1,329.6% during the 2nd quarter. Thrivent Financial for Lutherans now owns 1,193,247 shares of the company's stock worth $39,449,000 after purchasing an additional 1,109,780 shares in the last quarter. Advisory Services Network LLC raised its stake in shares of Keurig Dr Pepper by 12.8% during the 2nd quarter. Advisory Services Network LLC now owns 76,229 shares of the company's stock worth $2,489,000 after purchasing an additional 8,638 shares in the last quarter. State of Wyoming raised its stake in shares of Keurig Dr Pepper by 29.0% during the 2nd quarter. State of Wyoming now owns 14,608 shares of the company's stock worth $483,000 after purchasing an additional 3,283 shares in the last quarter. Finally, Asset Dedication LLC raised its stake in shares of Keurig Dr Pepper by 3.8% during the 2nd quarter. Asset Dedication LLC now owns 7,922 shares of the company's stock worth $262,000 after purchasing an additional 288 shares in the last quarter. 93.99% of the stock is 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.