Keurig Dr Pepper Sees Unusually Large Options Volume (NASDAQ:KDP)

Keurig Dr Pepper, Inc (NASDAQ:KDP) was the target of unusually large options trading on Wednesday. Stock investors acquired 6,624 call options on the company. This represents an increase of approximately 81% compared to the typical daily volume of 3,662 call options.

Keurig Dr Pepper Stock Performance

NASDAQ:KDP traded up $0.42 during mid-day trading on Wednesday, reaching $26.86. 2,750,929 shares of the stock were exchanged, compared to its average volume of 10,602,673. The company has a 50 day simple moving average of $27.62 and a 200-day simple moving average of $27.61. The stock has a market capitalization of $36.50 billion, a P/E ratio of 17.56, a P/E/G ratio of 1.34 and a beta of 0.35. The company has a quick ratio of 0.43, a current ratio of 0.64 and a debt-to-equity ratio of 0.51. Keurig Dr Pepper has a 1 year low of $24.88 and a 1 year high of $35.94.

Keurig Dr Pepper (NASDAQ:KDP) last released its quarterly earnings results on Tuesday, February 24th. The company reported $0.60 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.59 by $0.01. Keurig Dr Pepper had a return on equity of 11.14% and a net margin of 12.52%.The firm had revenue of $4.50 billion for the quarter, compared to the consensus estimate of $4.35 billion. During the same quarter last year, the business posted $0.58 EPS. The firm’s quarterly revenue was up 10.6% compared to the same quarter last year. Keurig Dr Pepper has set its FY 2026 guidance at 2.130-2.170 EPS. Analysts anticipate that Keurig Dr Pepper will post 2.27 earnings per share for the current fiscal year.

Keurig Dr Pepper Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, April 10th. Investors of record on Friday, March 27th were issued a dividend of $0.23 per share. The ex-dividend date of this dividend was Friday, March 27th. This represents a $0.92 annualized dividend and a yield of 3.4%. Keurig Dr Pepper’s payout ratio is currently 60.13%.

Hedge Funds Weigh In On Keurig Dr Pepper

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its holdings in Keurig Dr Pepper by 1.0% during the fourth quarter. Vanguard Group Inc. now owns 160,958,816 shares of the company’s stock worth $4,508,456,000 after purchasing an additional 1,538,456 shares during the last quarter. State Street Corp increased its position in Keurig Dr Pepper by 1.6% during the third quarter. State Street Corp now owns 64,594,706 shares of the company’s stock worth $1,662,361,000 after buying an additional 986,700 shares in the last quarter. Wellington Management Group LLP increased its position in Keurig Dr Pepper by 37.0% during the fourth quarter. Wellington Management Group LLP now owns 57,003,344 shares of the company’s stock worth $1,596,664,000 after buying an additional 15,393,753 shares in the last quarter. Geode Capital Management LLC increased its position in Keurig Dr Pepper by 3.9% during the fourth quarter. Geode Capital Management LLC now owns 31,802,056 shares of the company’s stock worth $887,021,000 after buying an additional 1,187,457 shares in the last quarter. Finally, T. Rowe Price Investment Management Inc. purchased a new position in Keurig Dr Pepper during the fourth quarter worth $727,667,000. 93.99% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities research analysts recently commented on the company. UBS Group dropped their target price on Keurig Dr Pepper from $36.00 to $32.00 and set a “buy” rating on the stock in a research report on Tuesday, April 7th. JPMorgan Chase & Co. cut their price objective on Keurig Dr Pepper from $36.00 to $32.00 and set an “overweight” rating for the company in a research report on Thursday, April 16th. Citigroup dropped their price target on Keurig Dr Pepper from $37.00 to $32.00 and set a “buy” rating for the company in a research report on Wednesday, April 15th. Deutsche Bank Aktiengesellschaft dropped their price target on Keurig Dr Pepper from $34.00 to $28.00 and set a “hold” rating for the company in a research report on Monday, March 30th. Finally, Evercore upgraded Keurig Dr Pepper to a “hold” rating in a report on Monday, April 6th. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and nine have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $31.31.

About Keurig Dr Pepper

Keurig Dr Pepper (NASDAQ: KDP) is a North American beverage company formed in July 2018 through the combination of Keurig Green Mountain and Dr Pepper Snapple Group. The company designs, manufactures, markets and distributes a wide range of hot and cold beverages and related equipment, combining Keurig’s single‑serve coffee systems with a large portfolio of carbonated and noncarbonated drink brands. It operates a network of manufacturing, packaging and distribution facilities to supply retail, foodservice and e-commerce channels across its served markets.

The company’s product mix includes single‑serve coffee brewers and coffee pods under the Keurig brand as well as a broad assortment of branded beverages.