Zacks Investment Research cut shares of Dr Pepper Snapple Group (NYSE:DPS) from a hold rating to a sell rating in a report published on Tuesday.
According to Zacks, “Dr Pepper’s shares have underperformed the industry in the past month. We note that the company has been witnessing weak volumes of carbonated beverages, including the diet versions owing to CSD category headwinds. Further, cross-category competition and growing health and wellness consciousness among consumers are hurting CSD category growth. Also, the diet drinks are under pressure due to increasing consumer concern in relation to the use of artificial sweeteners. Moreover, new taxes on sugar-sweetened beverages and growing regulatory pressures are affecting CSD sales. These factors are likely to hurt CSD volumes and the company’s overall results. Nevertheless, the company’s robust long-term fundamentals, aggressive RCI cost savings and regular shareholder returns, remain encouraging. Solid execution, pricing gains, innovation, powerful marketing programs and productivity improvements are also aiding results.”
A number of other research firms also recently weighed in on DPS. Stifel Nicolaus downgraded Dr Pepper Snapple Group from a buy rating to a hold rating and set a $122.00 price target on the stock. in a research note on Monday, June 18th. ValuEngine raised Dr Pepper Snapple Group from a hold rating to a buy rating in a research note on Monday, March 19th. Finally, Royal Bank of Canada raised Dr Pepper Snapple Group from a sector perform rating to an outperform rating and dropped their price objective for the stock from $135.00 to $125.00 in a research note on Monday, March 19th. One equities research analyst has rated the stock with a sell rating, twelve have issued a hold rating and five have given a buy rating to the company. Dr Pepper Snapple Group has an average rating of Hold and a consensus target price of $117.43.
Dr Pepper Snapple Group opened at $120.26 on Tuesday, Marketbeat reports. The company has a debt-to-equity ratio of 1.66, a quick ratio of 0.62 and a current ratio of 0.77. The firm has a market capitalization of $21.97 billion, a PE ratio of 26.49, a P/E/G ratio of 2.26 and a beta of 0.76. Dr Pepper Snapple Group has a twelve month low of $83.23 and a twelve month high of $126.65.
Dr Pepper Snapple Group (NYSE:DPS) last posted its quarterly earnings results on Wednesday, April 25th. The company reported $0.98 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.03 by ($0.05). The company had revenue of $1.59 billion during the quarter, compared to analyst estimates of $1.57 billion. Dr Pepper Snapple Group had a net margin of 15.62% and a return on equity of 35.49%. analysts expect that Dr Pepper Snapple Group will post 5.14 earnings per share for the current fiscal year.
In other Dr Pepper Snapple Group news, Director Ronald G. Rogers sold 16,232 shares of the stock in a transaction dated Wednesday, June 6th. The stock was sold at an average price of $120.00, for a total transaction of $1,947,840.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Derry L. Hobson sold 1,824 shares of the stock in a transaction dated Tuesday, June 5th. The stock was sold at an average price of $120.00, for a total value of $218,880.00. Following the transaction, the insider now owns 7,047 shares of the company’s stock, valued at approximately $845,640. The disclosure for this sale can be found here. Insiders have sold a total of 63,983 shares of company stock worth $7,707,383 in the last ninety days. 0.58% of the stock is currently owned by company insiders.
A number of hedge funds have recently added to or reduced their stakes in DPS. NuWave Investment Management LLC increased its holdings in Dr Pepper Snapple Group by 5,500.0% during the 1st quarter. NuWave Investment Management LLC now owns 952 shares of the company’s stock worth $113,000 after purchasing an additional 935 shares in the last quarter. Summit Trail Advisors LLC increased its holdings in Dr Pepper Snapple Group by 16,270.4% during the 1st quarter. Summit Trail Advisors LLC now owns 130,963 shares of the company’s stock worth $131,000 after purchasing an additional 130,163 shares in the last quarter. Aevitas Wealth Management Inc. bought a new position in Dr Pepper Snapple Group during the 4th quarter worth about $136,000. James Hambro & Partners bought a new position in Dr Pepper Snapple Group during the 4th quarter worth about $175,000. Finally, Boston Private Wealth LLC bought a new position in Dr Pepper Snapple Group during the 1st quarter worth about $201,000. Hedge funds and other institutional investors own 93.52% of the company’s stock.
Dr Pepper Snapple Group Company Profile
Dr Pepper Snapple Group, Inc manufactures and distributes non-alcoholic beverages in the United States, Mexico and the Caribbean, and Canada. The company operates through three segments: Beverage Concentrates, Packaged Beverages, and Latin America Beverages. It offers flavored carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, mineral and coconut water, and mixers, as well as manufactures and sells Mott's apple sauces.
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