Keurig Dr Pepper (NASDAQ:KDP) Shares Gap Up on Better-Than-Expected Earnings

Shares of Keurig Dr Pepper Inc. (NASDAQ:KDP) gapped up before the market opened on Thursday after the company announced better than expected quarterly earnings. 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 traded.

The company reported $0.38 EPS for the quarter, topping analysts’ consensus estimates 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 company had revenue of $3.47 billion for the quarter, compared to analysts’ expectations of $3.41 billion. During the same quarter last year, the business earned $0.34 earnings per share. Keurig Dr Pepper’s revenue was up 3.4% on a year-over-year basis.

Keurig Dr Pepper Announces Dividend

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

Analyst Upgrades and Downgrades

A number of research firms have issued reports on KDP. Royal Bank of Canada decreased their target price on Keurig Dr Pepper from $42.00 to $41.00 and set an “outperform” rating on the stock in a research report on Friday, February 23rd. Wedbush decreased their target price on Keurig Dr Pepper from $37.00 to $35.00 and set an “outperform” rating on the stock in a research report on Monday, February 26th. Morgan Stanley decreased their target price on Keurig Dr Pepper from $37.00 to $34.00 and set an “equal weight” rating on the stock in a research report on Monday, February 26th. Barclays lifted their target price on Keurig Dr Pepper from $32.00 to $36.00 and gave the company an “overweight” rating in a research report on Friday, April 12th. Finally, TD Cowen lifted their target price on Keurig Dr Pepper from $32.00 to $35.00 and gave the company a “hold” rating in a research report on Friday. Five research analysts have rated the stock with a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat.com, Keurig Dr Pepper presently has an average rating of “Moderate Buy” and a consensus target price of $36.33.

Insider Transactions at Keurig Dr Pepper

In other news, Director Robert S. Singer sold 12,132 shares of the business’s stock in a transaction dated Tuesday, March 5th. The stock was sold at an average price of $29.25, for a total transaction of $354,861.00. Following the sale, the director now directly owns 37,643 shares in the company, valued at $1,101,057.75. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. In related news, CFO Priyadarshi Sudhanshu acquired 85,910 shares of the business’s stock in a transaction that occurred on Tuesday, March 5th. The shares were bought at an average cost of $29.10 per share, with a total value of $2,499,981.00. Following the completion of the purchase, the chief financial officer now directly owns 218,566 shares in the company, valued at $6,360,270.60. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Robert S. Singer sold 12,132 shares of Keurig Dr Pepper stock in a transaction that occurred 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 directly owns 37,643 shares in the company, valued at $1,101,057.75. The disclosure for this sale can be found here. Over the last three months, insiders have sold 100,012,132 shares of company stock worth $2,890,354,861. Insiders own 0.81% of the company’s stock.

Hedge Funds Weigh In On Keurig Dr Pepper

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Foster Victor Wealth Advisors LLC lifted its stake in shares of Keurig Dr Pepper by 10.8% in the first quarter. Foster Victor Wealth Advisors LLC now owns 463,082 shares of the company’s stock worth $14,272,000 after acquiring an additional 45,014 shares during the period. Checchi Capital Advisers LLC lifted its stake in shares of Keurig Dr Pepper by 23.3% in the first quarter. Checchi Capital Advisers LLC now owns 8,081 shares of the company’s stock worth $248,000 after acquiring an additional 1,526 shares during the period. Latitude Advisors LLC lifted its stake in Keurig Dr Pepper by 13.9% in the first quarter. Latitude Advisors LLC now owns 6,855 shares of the company’s stock valued at $210,000 after buying an additional 839 shares during the period. New York State Teachers Retirement System lifted its stake in Keurig Dr Pepper by 1.0% in the first quarter. New York State Teachers Retirement System now owns 739,210 shares of the company’s stock valued at $22,672,000 after buying an additional 7,427 shares during the period. Finally, Fjarde AP Fonden Fourth Swedish National Pension Fund lifted its stake in Keurig Dr Pepper by 9.5% in the first quarter. Fjarde AP Fonden Fourth Swedish National Pension Fund now owns 405,650 shares of the company’s stock valued at $12,441,000 after buying an additional 35,200 shares during the period. 85.23% of the stock is owned by institutional investors and hedge funds.

Keurig Dr Pepper Stock Performance

The company has a quick ratio of 0.25, a current ratio of 0.38 and a debt-to-equity ratio of 0.39. The company has a 50 day simple moving average of $30.41 and a 200-day simple moving average of $31.08. The stock has a market capitalization of $46.79 billion, a price-to-earnings 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.