Keurig Dr Pepper (NASDAQ:KDP) Shares Gap Up Following Strong Earnings

Shares of Keurig Dr Pepper Inc. (NASDAQ:KDP) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $32.34, but opened at $33.95. Keurig Dr Pepper shares last traded at $33.56, with a volume of 2,772,037 shares.

The company reported $0.38 earnings per share for the quarter, beating the consensus estimate of $0.34 by $0.04. Keurig Dr Pepper had a return on equity of 9.93% and a net margin of 14.72%. The firm had revenue of $3.47 billion during the quarter, compared to the consensus estimate of $3.41 billion. During the same quarter in the prior year, the company earned $0.34 EPS. The firm’s revenue for the quarter was up 3.4% compared to the same quarter last year.

Keurig Dr Pepper Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, April 12th. Shareholders of record on Friday, March 29th were given a $0.215 dividend. The ex-dividend date of this dividend was Wednesday, March 27th. This represents a $0.86 dividend on an annualized basis and a dividend yield of 2.55%. Keurig Dr Pepper’s dividend payout ratio is currently 55.48%.

Analyst Upgrades and Downgrades

A number of analysts have commented on the company. Morgan Stanley reduced their price objective on Keurig Dr Pepper from $37.00 to $34.00 and set an “equal weight” rating for the company in a research report on Monday, February 26th. Royal Bank of Canada dropped their target price on Keurig Dr Pepper from $42.00 to $41.00 and set an “outperform” rating for the company in a report on Friday, February 23rd. Wedbush dropped their target price on Keurig Dr Pepper from $37.00 to $35.00 and set an “outperform” rating for the company in a report on Monday, February 26th. Barclays increased their target price on Keurig Dr Pepper from $32.00 to $36.00 and gave the stock an “overweight” rating in a report on Friday, April 12th. Finally, TD Cowen increased their target price on Keurig Dr Pepper from $32.00 to $35.00 and gave the stock a “hold” rating in a report on Friday. Five equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $36.33.

Insider Activity at Keurig Dr Pepper

In other Keurig Dr Pepper news, Director Robert S. Singer sold 12,132 shares of the stock in a transaction on Tuesday, March 5th. The stock was sold at an average price of $29.25, for a total value of $354,861.00. Following the transaction, the director now directly owns 37,643 shares in the company, valued at approximately $1,101,057.75. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. In other Keurig Dr Pepper news, major shareholder Holdings B.V. Jab sold 51,956,522 shares of the stock in a transaction on Tuesday, March 5th. The stock was sold at an average price of $28.90, for a total value of $1,501,543,485.80. Following the transaction, the insider now directly owns 331,487,357 shares in the company, valued at approximately $9,579,984,617.30. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Robert S. Singer sold 12,132 shares of the firm’s stock in a transaction on Tuesday, March 5th. The stock was sold at an average price of $29.25, for a total value of $354,861.00. Following the completion of the transaction, the director now owns 37,643 shares in the company, valued at $1,101,057.75. The disclosure for this sale can be found here. Insiders sold 100,012,132 shares of company stock valued at $2,890,354,861 in the last three months. Corporate insiders own 0.81% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Achmea Investment Management B.V. boosted its position in shares of Keurig Dr Pepper by 0.8% in the 3rd quarter. Achmea Investment Management B.V. now owns 38,847 shares of the company’s stock worth $1,226,000 after purchasing an additional 324 shares during the last quarter. Morningstar Investment Management LLC boosted its position in shares of Keurig Dr Pepper by 1.1% in the 4th quarter. Morningstar Investment Management LLC now owns 31,543 shares of the company’s stock worth $1,051,000 after purchasing an additional 328 shares during the last quarter. Kentucky Retirement Systems boosted its position in shares of Keurig Dr Pepper by 0.4% in the 4th quarter. Kentucky Retirement Systems now owns 80,555 shares of the company’s stock worth $2,684,000 after purchasing an additional 344 shares during the last quarter. Operose Advisors LLC boosted its position in shares of Keurig Dr Pepper by 28.7% in the 3rd quarter. Operose Advisors LLC now owns 1,673 shares of the company’s stock worth $53,000 after purchasing an additional 373 shares during the last quarter. Finally, Mckinley Capital Management LLC boosted its position in shares of Keurig Dr Pepper by 1.3% in the 3rd quarter. Mckinley Capital Management LLC now owns 35,749 shares of the company’s stock worth $1,129,000 after purchasing an additional 470 shares during the last quarter. 85.23% of the stock is currently owned by institutional investors.

Keurig Dr Pepper Price Performance

The company has a 50-day moving average price of $30.41 and a 200-day moving average price of $31.08. The company has a debt-to-equity ratio of 0.39, a quick ratio of 0.25 and a current ratio of 0.38. The firm has a market capitalization of $46.79 billion, a P/E ratio of 21.75, a price-to-earnings-growth ratio of 2.46 and a beta of 0.66.

Keurig Dr Pepper Company Profile

Keurig Dr Pepper Inc owns, manufactures, and distributors beverages and single serve brewing systems in the United States and internationally. It operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International. The U.S. Refreshment Beverages segment manufactures and distributes branded concentrates, syrup, and finished beverages.