Keurig Dr Pepper (NASDAQ:KDP) Reaches New 12-Month High - Here's Why

Key Points

• Keurig Dr Pepper shares reached a new 52-week high of $34.88, supported by a “Moderate Buy” analyst consensus and an average price target of $36.00.
• The company exceeded quarterly expectations, reporting $0.57 in adjusted earnings per share versus estimates of $0.54 and $7.31 billion in revenue versus $7.23 billion expected; revenue increased 75.6% year over year.
• Keurig Dr Pepper maintains a quarterly dividend of $0.23, equivalent to an annualized $0.92 payout and a 2.7% yield, while institutional investors own approximately 93.99% of the stock.

Shares of Keurig Dr Pepper, Inc (NASDAQ:KDP - Get Free Report) hit a new 52-week high during mid-day trading on Wednesday. The stock traded as high as $34.88 and last traded at $34.63, with a volume of 18,645,961 shares trading hands. The stock had previously closed at $34.46.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on KDP shares. The Goldman Sachs Group upgraded shares of Keurig Dr Pepper from a "neutral" rating to a "neutral" rating in a research note on Thursday, June 25th. UBS Group raised their price target on shares of Keurig Dr Pepper from $38.00 to $39.00 and gave the company a "buy" rating in a research note on Friday, August 7th. Sanford C. Bernstein set a $39.00 target price on shares of Keurig Dr Pepper in a research note on Wednesday, July 8th. Citigroup boosted their price objective on Keurig Dr Pepper from $32.00 to $37.00 and gave the stock a "buy" rating in a research report on Tuesday, July 14th. Finally, Wells Fargo & Company set a $37.00 target price on shares of Keurig Dr Pepper in a research report on Wednesday, July 1st. Eleven research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $36.00.

Keurig Dr Pepper Stock Up 0.5%

The company has a quick ratio of 0.28, a current ratio of 0.48 and a debt-to-equity ratio of 0.74. The stock has a 50 day simple moving average of $31.81 and a 200 day simple moving average of $30.46. The stock has a market cap of $47.13 billion, a price-to-earnings ratio of 34.98, a PEG ratio of 1.62 and a beta of 0.40.

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

Keurig Dr Pepper Dividend Announcement

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

Insider Buying and Selling at Keurig Dr Pepper

In related news, VP Angela Stephens sold 9,500 shares of the business's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $32.70, for a total value of $310,650.00. Following the transaction, the vice president directly owned 55,786 shares of the company's stock, valued at approximately $1,824,202.20. The trade was a 14.55% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Aaron Alt acquired 7,862 shares of the stock in a transaction on Tuesday, August 25th. The stock was bought at an average cost of $31.83 per share, for a total transaction of $250,247.46. Following the transaction, the director owned 7,862 shares of the company's stock, valued at approximately $250,247.46. This trade represents a ∞ increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 0.34% of the company's stock.

Hedge Funds Weigh In On Keurig Dr Pepper

Several hedge funds have recently made changes to their positions in KDP. Community Bank N.A. bought a new position in shares of Keurig Dr Pepper during the 2nd quarter valued at approximately $29,000. Meeder Asset Management Inc. raised its position in Keurig Dr Pepper by 358.0% during the first quarter. Meeder Asset Management Inc. now owns 971 shares of the company's stock valued at $26,000 after purchasing an additional 759 shares during the period. Fortitude Family Office LLC lifted its stake in shares of Keurig Dr Pepper by 216.2% in the 3rd quarter. Fortitude Family Office LLC now owns 1,565 shares of the company's stock valued at $47,000 after purchasing an additional 1,070 shares during the last quarter. Mather Group LLC. increased its position in Keurig Dr Pepper by 54.9% during the third quarter. Mather Group LLC. now owns 1,816 shares of the company's stock valued at $55,000 after acquiring an additional 644 shares during the last quarter. Finally, N.E.W. Advisory Services LLC purchased a new stake in shares of Keurig Dr Pepper in the second quarter valued at $65,000. 93.99% of the stock is currently owned by hedge funds and other institutional investors.

About Keurig Dr Pepper

Keurig Dr Pepper Inc NASDAQ: KDP is a beverage company that operates across coffee and packaged beverages. Its portfolio includes soft drinks, flavored waters, juices, juice drinks, ready-to-drink teas and coffees, sports and energy beverages, and mixers, as well as single-serve coffee brewing systems and pods.

The company's brands include Keurig, Green Mountain Coffee Roasters, The Original Donut Shop, Dr Pepper, Canada Dry, Snapple, 7UP, A&W, Mott's, Bai, CORE Hydration and Venom, among others.

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