Keurig Dr Pepper (NASDAQ:KDP) Shares Down 6.3% – Time to Sell?

Keurig Dr Pepper, Inc (NASDAQ:KDP) shares traded down 6.3% during mid-day trading on Tuesday. The company traded as low as $34.68 and last traded at $34.4880. Approximately 4,657,063 shares were traded during trading, a decline of 61% from the average daily volume of 12,074,874 shares. The stock had previously closed at $36.82.

Keurig Dr Pepper News Roundup

Here are the key news stories impacting Keurig Dr Pepper this week:

• Positive Sentiment: Barclays raised its price target to $41 from $38 and reaffirmed an overweight/buy view. UBS raised its target to $42 from $39 with a buy rating; JPMorgan lifted its target to $41 from $39 and Morgan Stanley to $40 from $38, both maintaining overweight ratings. The higher targets indicate continued analyst confidence. Barclays rating
• Positive Sentiment: Energy drinks are a growth bright spot: the category’s market share exceeded 10% after recent brand acquisitions. Q3 net sales increased 70.1%, although the JDE Peet’s acquisition contributed substantially to that growth. Three takeaways for long-term investors
• Neutral Sentiment: TD Cowen raised its target to $35 from $33 but kept a hold rating; the new target remains below the cited share price. TD Cowen recommendations
• Negative Sentiment: Strong energy-drink growth contrasts with weak coffee demand. The planned 2027 business split could make the difference in performance and valuation between the beverage and coffee operations more pronounced, adding uncertainty for investors. Beverage growth and the coffee split

Analyst Ratings Changes

Several equities research analysts have commented on the stock. Barclays upped their target price on shares of Keurig Dr Pepper from $38.00 to $41.00 and gave the company an “overweight” rating in a research note on Thursday. Evercore lifted their price target on shares of Keurig Dr Pepper from $30.00 to $32.00 in a research report on Thursday, October 8th. Bank of America boosted their price target on shares of Keurig Dr Pepper from $35.00 to $38.00 in a report on Friday, July 10th. Weiss Ratings restated a “hold (c)” rating on shares of Keurig Dr Pepper in a research report on Friday, August 7th. Finally, BNP Paribas Exane raised their price objective on Keurig Dr Pepper from $28.00 to $29.00 and gave the stock a “neutral” rating in a research note on Monday, August 10th. Ten research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $37.29.

Keurig Dr Pepper Stock Performance

The stock’s 50-day moving average price is $32.68 and its 200 day moving average price is $30.11. The firm has a market cap of $50.20 billion, a P/E ratio of 33.84, a price-to-earnings-growth ratio of 1.65 and a beta of 0.35. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.52 and a quick ratio of 0.28.

Keurig Dr Pepper (NASDAQ:KDP) last released its earnings results on Tuesday, November 3rd. The company reported $0.66 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.62 by $0.04. The business had revenue of $7.34 billion for the quarter, compared to the consensus estimate of $7.33 billion. Keurig Dr Pepper had a return on equity of 11.27% and a net margin of 7.12%. Keurig Dr Pepper’s quarterly revenue was up 70.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.54 earnings per share. As a group, equities analysts predict that Keurig Dr Pepper, Inc will post 2.30 EPS for the current year.

Keurig Dr Pepper Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, October 9th. Stockholders of record on Monday, September 28th were given a $0.23 dividend. The ex-dividend date of this dividend was Monday, September 28th. This represents a $0.92 annualized dividend and a dividend yield of 2.5%. Keurig Dr Pepper’s dividend 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 firm’s stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $32.70, for a total transaction 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. This trade represents a 14.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Aaron Alt bought 7,862 shares of the stock in a transaction dated Tuesday, August 25th. The shares were acquired at an average cost of $31.83 per share, for a total transaction of $250,247.46. Following the completion of the acquisition, the director directly owned 7,862 shares of the company’s stock, valued at approximately $250,247.46. This trade represents a ? increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of KDP. Maryland State Retirement & Pension System increased its stake in Keurig Dr Pepper by 11.0% during the 3rd quarter. Maryland State Retirement & Pension System now owns 79,100 shares of the company’s stock valued at $2,400,000 after purchasing an additional 7,810 shares in the last quarter. Jacobi Capital Management LLC lifted its stake in shares of Keurig Dr Pepper by 2.5% in the third quarter. Jacobi Capital Management LLC now owns 22,914 shares of the company’s stock valued at $695,000 after buying an additional 561 shares in the last quarter. Keybank National Association OH grew its holdings in shares of Keurig Dr Pepper by 3.0% during the third quarter. Keybank National Association OH now owns 18,876 shares of the company’s stock valued at $573,000 after buying an additional 557 shares during the last quarter. Csenge Advisory Group acquired a new position in shares of Keurig Dr Pepper during the third quarter valued at about $286,000. Finally, AlphaCore Capital LLC increased its position in shares of Keurig Dr Pepper by 58.8% during the third quarter. AlphaCore Capital LLC now owns 20,196 shares of the company’s stock worth $613,000 after acquiring an additional 7,476 shares in the last quarter. Institutional investors and hedge funds own 93.99% of the company’s stock.

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.