Keurig Dr Pepper (NASDAQ:KDP) Sees Large Volume Increase – What’s Next?

Keurig Dr Pepper, Inc (NASDAQ:KDP) shares saw an uptick in trading volume on Friday. Approximately 19,559,873 shares were traded during mid-day trading, an increase of 57% from the average daily volume of 12,492,615 shares. The stock last traded at $36.2240 and had previously closed at $35.42.

Key Headlines Impacting Keurig Dr Pepper

Investors following KDP have been watching these headlines:

• Positive Sentiment: Dr Pepper secured fountain distribution at Jersey Mike’s, expanding its foodservice reach and creating a potential avenue for brand growth. Article: Can Keurig’s New Fountain Distribution Gains Boost Its Reach?
• Neutral Sentiment: KDP priced its public offering of 57.97 million shares at $34.50 each, raising about $2 billion. The company says it plans to use the proceeds to reduce debt, ahead of a planned business separation. Debt reduction could strengthen the balance sheet, though the equity financing has a dilutive trade-off. Article: Keurig Dr Pepper Announces Pricing of Public Offering of Common Stock
• Negative Sentiment: The offering adds a substantial number of new shares, diluting existing shareholders. Its $34.50 per-share price may also weigh on the stock by setting a lower reference price for investors; reports linked the offering to a decline in KDP shares. Article: Keurig Dr Pepper Shares Decline Following Pricing of Share Offering

Analysts Set New Price Targets

A number of analysts have recently weighed in on the company. HSBC upgraded Keurig Dr Pepper from a “hold” rating to a “buy” rating and upped their target price for the company from $37.00 to $40.00 in a research report on Thursday, August 13th. Piper Sandler restated an “overweight” rating on shares of Keurig Dr Pepper in a research report on Wednesday, October 14th. BNP Paribas Exane boosted their price target on Keurig Dr Pepper from $28.00 to $29.00 and gave the company a “neutral” rating in a research note on Monday, August 10th. TD Cowen boosted their price target on Keurig Dr Pepper from $33.00 to $35.00 and gave the company a “hold” rating in a research note on Wednesday, November 4th. Finally, Barclays upped their price objective on shares of Keurig Dr Pepper from $38.00 to $41.00 and gave the stock an “overweight” rating in a research report on Thursday, November 5th. Ten research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $37.29.

Keurig Dr Pepper Stock Up 2.6%

The firm has a 50 day simple moving average of $33.33 and a two-hundred day simple moving average of $30.43. The company has a quick ratio of 0.32, a current ratio of 0.52 and a debt-to-equity ratio of 0.73. The stock has a market capitalization of $49.46 billion, a P/E ratio of 33.34, a PEG ratio of 1.69 and a beta of 0.35.

Keurig Dr Pepper (NASDAQ:KDP) last issued its earnings results on Tuesday, November 3rd. The company reported $0.66 earnings per share for the quarter, beating analysts’ consensus estimates of $0.62 by $0.04. Keurig Dr Pepper had a return on equity of 11.27% and a net margin of 7.12%. The firm had revenue of $7.34 billion for the quarter, compared to the consensus estimate of $7.33 billion. During the same quarter last year, the business posted $0.54 EPS. The company’s revenue was up 70.6% compared to the same quarter last year. On average, equities research analysts expect that Keurig Dr Pepper, Inc will post 2.31 earnings per share for the current year.

Keurig Dr Pepper Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Monday, September 28th were paid a $0.23 dividend. The ex-dividend date of this dividend was Monday, September 28th. This represents a $0.92 annualized dividend and a yield of 2.5%. Keurig Dr Pepper’s dividend payout ratio (DPR) is 84.40%.

Insider Buying and Selling at Keurig Dr Pepper

In other Keurig Dr Pepper news, insider Mary Beth Denooyer sold 12,000 shares of Keurig Dr Pepper stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $32.55, for a total value of $390,600.00. Following the transaction, the insider owned 84,171 shares in the company, valued at $2,739,766.05. The trade was a 12.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Angela Stephens sold 9,500 shares of the business’s stock in a transaction dated Thursday, September 3rd. The stock was 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 SEC filing for this sale provides additional information. Company insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On Keurig Dr Pepper

Several institutional investors and hedge funds have recently added to or reduced their stakes in KDP. Vontobel Holding Ltd. raised its position in shares of Keurig Dr Pepper by 1.5% in the third quarter. Vontobel Holding Ltd. now owns 21,777 shares of the company’s stock valued at $661,000 after purchasing an additional 328 shares during the period. L2 Asset Management LLC lifted its stake in shares of Keurig Dr Pepper by 4.6% during the 3rd quarter. L2 Asset Management LLC now owns 7,758 shares of the company’s stock valued at $235,000 after buying an additional 339 shares in the last quarter. Parallel Advisors LLC boosted its holdings in Keurig Dr Pepper by 2.6% in the 3rd quarter. Parallel Advisors LLC now owns 13,823 shares of the company’s stock worth $419,000 after buying an additional 353 shares during the period. CX Institutional boosted its holdings in Keurig Dr Pepper by 2.8% in the 3rd quarter. CX Institutional now owns 17,017 shares of the company’s stock worth $516,000 after buying an additional 469 shares during the period. Finally, Hantz Financial Services Inc. boosted its holdings in Keurig Dr Pepper by 4.4% in the 3rd quarter. Hantz Financial Services Inc. now owns 12,581 shares of the company’s stock worth $382,000 after buying an additional 530 shares during the period. Institutional investors own 93.99% of the company’s stock.

Keurig Dr Pepper Company Profile

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.