Zacks Investment Research upgraded shares of Keurig Dr Pepper (NYSE:KDP) from a hold rating to a buy rating in a report issued on Wednesday morning, Zacks.com reports. They currently have $32.00 price objective on the stock.
According to Zacks, “Keurig Dr Pepper outpaced the industry year to date, owing to a robust earnings trend. Earnings gained from higher adjusted operating income and considerable decline in interest expense due to reduced indebtedness and unwinding of several interest rate swap contracts. Its earnings and sales growth guidance for 2019 is estimated to be within the company’s long-term target, which was set out at the time of the merger. It is also witnessing strong dollar consumption growth across the majority of its portfolio and KDP holding, with market share gains across all categories. However, the company’s sales were impacted by adverse effects of changes made in its Allied Brands portfolio, negative comparisons due to a calendar shift this year and negative currency translations. These factors also weighed on sales of the Packaged Beverages segment.”
Several other analysts have also recently commented on the stock. Barclays reiterated a buy rating and issued a $31.00 price target on shares of Keurig Dr Pepper in a research note on Tuesday, March 19th. ValuEngine cut shares of Keurig Dr Pepper from a sell rating to a strong sell rating in a research note on Thursday, February 28th. Morgan Stanley cut shares of Keurig Dr Pepper from an equal weight rating to an underweight rating and set a $27.30 price target on the stock. in a research note on Thursday, April 11th. Finally, BMO Capital Markets upgraded shares of Keurig Dr Pepper from a market perform rating to an outperform rating and boosted their price target for the stock from $27.00 to $34.00 in a research note on Monday, June 17th. Two research analysts have rated the stock with a sell rating, six have given a hold rating and nine have issued a buy rating to the company. The stock presently has a consensus rating of Hold and an average target price of $28.95.
Keurig Dr Pepper (NYSE:KDP) last announced its quarterly earnings results on Thursday, May 9th. The company reported $0.25 EPS for the quarter, topping the consensus estimate of $0.23 by $0.02. The business had revenue of $2.50 billion for the quarter, compared to analysts’ expectations of $2.54 billion. Keurig Dr Pepper had a net margin of 9.39% and a return on equity of 8.95%. The business’s revenue was up 164.1% on a year-over-year basis. As a group, equities analysts expect that Keurig Dr Pepper will post 1.22 earnings per share for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, July 19th. Stockholders of record on Friday, July 5th will be given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 1.96%. The ex-dividend date is Wednesday, July 3rd. Keurig Dr Pepper’s dividend payout ratio is 57.69%.
In related news, major shareholder Holdings B.V. Maple sold 52,902,300 shares of the stock in a transaction dated Friday, May 17th. The shares were sold at an average price of $27.77, for a total value of $1,469,096,871.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Robert S. Singer acquired 3,000 shares of Keurig Dr Pepper stock in a transaction that occurred on Thursday, May 16th. The stock was purchased at an average cost of $28.93 per share, for a total transaction of $86,790.00. The disclosure for this purchase can be found here. 0.44% of the stock is currently owned by corporate insiders.
Institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc bought a new position in Keurig Dr Pepper in the 3rd quarter worth about $388,634,000. Bank of America Corp DE grew its stake in Keurig Dr Pepper by 2,892.9% in the 4th quarter. Bank of America Corp DE now owns 10,570,613 shares of the company’s stock worth $271,031,000 after acquiring an additional 10,217,429 shares in the last quarter. FMR LLC grew its stake in Keurig Dr Pepper by 39.2% in the 4th quarter. FMR LLC now owns 27,592,939 shares of the company’s stock worth $707,483,000 after acquiring an additional 7,777,020 shares in the last quarter. Wells Fargo & Company MN grew its stake in Keurig Dr Pepper by 1,036.5% in the 1st quarter. Wells Fargo & Company MN now owns 2,019,618 shares of the company’s stock worth $56,488,000 after acquiring an additional 1,841,915 shares in the last quarter. Finally, Norges Bank bought a new position in Keurig Dr Pepper in the 4th quarter worth about $36,626,000. 14.27% of the stock is currently owned by institutional investors.
Keurig Dr Pepper Company Profile
Keurig Dr Pepper Inc operates as a beverage company in the United States and internationally. It operates through four segments: Beverage Concentrates, Packaged Beverages, Latin America Beverages, and Coffee Systems. The Beverage Concentrates segment manufactures and sells beverage concentrates. This segment also manufactures beverage concentrates into syrup.
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