Keurig Dr Pepper (NASDAQ:KDP) Hits New 1-Year High - Time to Buy?

Key Points

• Keurig Dr Pepper shares reached a new 52-week high, trading as high as $34.49 and gaining 2.1%, with a market capitalization of approximately $46 billion.
• Analysts maintain a “Moderate Buy” consensus, with 11 Buy ratings and 7 Holds; the average price target is $36, while recent targets range from $37 to $42.
• The company exceeded quarterly expectations, reporting $0.57 in EPS and $7.31 billion in revenue, while revenue rose 75.6% year over year. KDP also pays a quarterly dividend of $0.23 per share, equivalent to a 2.7% yield.

Keurig Dr Pepper, Inc (NASDAQ:KDP - Get Free Report)'s stock price hit a new 52-week high on Thursday. The company traded as high as $34.49 and last traded at $34.3570, with a volume of 3,191,915 shares. The stock had previously closed at $33.12.

Analyst Upgrades and Downgrades

KDP has been the topic of a number of recent analyst reports. The Goldman Sachs Group raised Keurig Dr Pepper from a "neutral" rating to a "neutral" rating in a research note on Thursday, June 25th. Citigroup increased their price target on Keurig Dr Pepper from $32.00 to $37.00 and gave the company a "buy" rating in a report on Tuesday, July 14th. UBS Group increased their price target on Keurig Dr Pepper from $38.00 to $39.00 and gave the company a "buy" rating in a report on Friday, August 7th. Royal Bank Of Canada restated an "outperform" rating and issued a $42.00 price objective on shares of Keurig Dr Pepper in a research note on Tuesday, August 4th. Finally, HSBC raised shares of Keurig Dr Pepper from a "hold" rating to a "buy" rating and set a $40.00 price objective for the company in a report on Thursday, August 13th. Eleven equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $36.00.

Keurig Dr Pepper Trading Up 2.1%

The company has a market capitalization of $46.02 billion, a P/E ratio of 34.17, a P/E/G ratio of 1.54 and a beta of 0.40. The company has a 50-day simple moving average of $31.43 and a 200 day simple moving average of $30.23. The company has a debt-to-equity ratio of 0.74, a quick ratio of 0.28 and a current ratio of 0.48.

Keurig Dr Pepper (NASDAQ:KDP - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.57 earnings per share for the quarter, beating the consensus estimate of $0.54 by $0.03. Keurig Dr Pepper had a return on equity of 10.80% and a net margin of 7.10%. The company had revenue of $7.31 billion during the quarter, compared to analysts' expectations of $7.23 billion. During the same period in the prior year, the business earned $0.49 earnings per share. Keurig Dr Pepper's revenue for the quarter was up 75.6% compared to the same quarter last year. Sell-side analysts expect that Keurig Dr Pepper, Inc will post 2.30 earnings per share for the current year.

Keurig Dr Pepper Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Monday, September 28th were issued a dividend of $0.23 per share. The ex-dividend date was Monday, September 28th. This represents a $0.92 annualized dividend and a dividend yield of 2.7%. Keurig Dr Pepper's payout ratio is presently 92.93%.

Insider Activity

In other Keurig Dr Pepper news, VP Angela A. Stephens sold 9,500 shares of the business's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $32.70, for a total value of $310,650.00. Following the sale, the vice president owned 55,786 shares of the company's stock, valued at $1,824,202.20. The trade was a 14.55% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Aaron E. Alt purchased 7,862 shares of the company's stock in a transaction that occurred on Tuesday, August 25th. The stock was acquired at an average cost of $31.83 per share, with a total value of $250,247.46. Following the transaction, the director directly owned 7,862 shares of the company's stock, valued at approximately $250,247.46. This represents a ∞ increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. 0.34% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. WJ Financial Advisors LLC raised its holdings in shares of Keurig Dr Pepper by 1.6% in the first quarter. WJ Financial Advisors LLC now owns 27,383 shares of the company's stock valued at $721,000 after buying an additional 433 shares during the last quarter. CX Institutional grew its holdings in Keurig Dr Pepper by 2.8% during the 3rd quarter. CX Institutional now owns 17,017 shares of the company's stock worth $516,000 after acquiring an additional 469 shares during the last quarter. Mather Group LLC. grew its holdings in Keurig Dr Pepper by 54.9% during the 3rd quarter. Mather Group LLC. now owns 1,816 shares of the company's stock worth $55,000 after acquiring an additional 644 shares during the last quarter. Meeder Asset Management Inc. increased its position in Keurig Dr Pepper by 358.0% in the 1st quarter. Meeder Asset Management Inc. now owns 971 shares of the company's stock valued at $26,000 after acquiring an additional 759 shares in the last quarter. Finally, Root Financial Partners LLC increased its position in Keurig Dr Pepper by 41.8% in the 1st quarter. Root Financial Partners LLC now owns 2,705 shares of the company's stock valued at $71,000 after acquiring an additional 798 shares in the last quarter. 93.99% of the stock is owned by institutional investors.

Keurig Dr Pepper Company Profile

Keurig Dr Pepper Inc NASDAQ: KDP is a beverage company that produces, distributes and markets a broad portfolio of hot and cold beverages. Its products include coffee, soft drinks, flavored sparkling water, juices, teas, sports drinks and mixers, sold under brands such as Keurig, Dr Pepper, Green Mountain Coffee Roasters, Canada Dry, Snapple, 7UP, A&W, Bai and Core Hydration.

The company's coffee business includes single-serve brewing systems, coffee makers, pods and related beverages.

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