Is Keurig Dr Pepper Inc. (NYSE: KDP) Proving The Doubters Wrong?


    Capital Research & Management Co.. has recently announced that it has increased stake in Keurig Dr Pepper Inc. (NYSE:KDP) by 10.78%. After grabbing 54.96 million shares, the institutional investor is now in possession of 5.35 million shares of the Consumer Defensive Company. The new investment brought the stake of investor firm to 3.91% having worth around $1.68 billion. Moreover, Capital Research & Management Co.. increased its share by 15.19 million to have a control over 36.29 million shares. And The Vanguard Group, Inc. raised its holdings to 3.57 million shares by acquiring 18.6 million shares or 1.32% of the stake.

    Keurig Dr Pepper Inc. (KDP) concluded trading on 08/26/20 at a closing price of $29.80, with 7.72 million shares of worth about $230.18 million changed hands on the day. Weekly performance of the stock remained positive as price took a surge of 1.57% during that period and on Wednesday the price saw a gain of about 1.71%. Currently the company’s common shares owned by public are about 1.41B shares, out of which, 489.99M shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 17 analysts are covering the KDP stock and their offered price forecasts bring an average price target of $33.88. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $39.00 and could fall to a lowest price of $27.00. Analysts also issued an outlook of 2.30 for the Keurig Dr Pepper Inc. stock for next 12 months. The stock’s current price level is 11.39% above of average price target set by the analysts, while a rise to estimated low would result in loss of -10.37 for the stock. However, touching the estimated high of $39.00 would mean a gain of 23.59% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 47 times over the past 12 months. They bought 7,919,968 shares in 42 of the transactions. In 5 selling transactions, insiders dumped 196,732,935 shares.

    American Funds Investment Company, Washington Mutual Investors Fund, and T Rowe Price Capital Appreciation are the top 3 mutual funds which are holding stakes in Keurig Dr Pepper Inc. American Funds Investment Company is currently holding 28.54 million shares of worth totaling $873.17 million. The company recently came buying 2.8 million shares which brought its stake up to 2.03% of the company’s outstanding shares. Washington Mutual Investors Fund bought 8.1 million shares, after which its hold over company’s outstanding shares expand to 1.99%, leaving 27.96 million shares with the mutual fund that have a worth of about $855.26 million. T Rowe Price Capital Appreciation, after selling 22.82 million shares, have now control over 1.62% of the stake in the company. It holds -11.42 million shares of worth $698.14 million.

    Keurig Dr Pepper Inc. (NYSE: KDP) started trading at $29.91, above $0.61 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $29.80, or with a gain of 1.71%. Stock saw a price change of 1.57% in past 5 days and over the past one month there was a price change of -3.53%. Year-to-date (YTD), KDP shares are showing a performance of 2.94% which increased to 11.40% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $18.98 but also hit the highest price of $32.00 during that period. While comparing its average daily trading volume of 4.30 million shares, we see that about 7.72 million changed hands on the day. The stock is currently trading -0.02% below its 20-day simple moving average (SMA20), while that difference is up 1.20% for SMA50 and it goes to 6.39% higher than SMA200.

    Capital Research & Management Co.. acquired 54.96 million shares of Keurig Dr Pepper Inc. having value of about $1.68 billion. Data submitted at the U.S SEC by Capital Research & Management Co.. revealed that the firm now holds 5.35 million shares in the company valued at close to $159336338.6, or have control over 10.78% stake in the company. Keurig Dr Pepper Inc. (NYSE: KDP) currently have 1.41B outstanding shares and institutions hold larger chunk of about 31.60% of that. Holding of mutual funds in the company is about 6.22% while other institutional holders and individual stake holders have control over 65.22% and 19.37% of the stake respectively.

    The stock has a current market capitalization of $42.31B and its 3Y-monthly beta is at 0.63. PE ratio of stock for trailing 12 months is 36.34, while it has posted earnings per share of $0.82 in the same period. Its PEG reads 3.21 and has Quick Ratio of 0.20 while making debt-to-equity ratio of 0.64. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for KDP, volatility over the week remained 1.27% while standing at 1.65% over the month.

    Analysts are in expectations that Keurig Dr Pepper Inc. (KDP) stock would likely to be making an EPS of $0.37 in the current quarter, while forecast for next quarter ESPS is $0.41 and it is $1.59 for next year. For the current quarter EPS, analysts have given the company a lowest target $0.35 which is $0.39 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of $0.32 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 66.90% while it is estimated to increase by 13.67% in next year. EPS is likely to grow at an annualized rate of 11.31% for next 5-years, compared to annual growth of -24.30% made by the stock over the past 5-years.

    Analysts at 17 brokerage firms have issued recommendations for the Keurig Dr Pepper Inc. (KDP)’s stock and average of those rates the stock at a “Moderate Buy” and assign it a score of 2.30. Out of those 17 Wall Street analysts, 10 recommended a “Buy” rating, while 6 were in favor recommending the stock as a “Hold” and 0 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Morgan Stanley on August 26, 2020 offering an Overweight rating for the stock and assigned a target price of $34 to it. Coverage by Goldman stated Keurig Dr Pepper Inc. (KDP) stock as a Buy in their note to investors on July 09, 2020, suggesting a price target of $33 for the stock. On June 11, 2020, Jefferies Upgrade their recommendations, while on June 01, 2020, Evercore ISI Upgrade their ratings for the stock with a price target of $35. Stock get a Neutral rating from Goldman on April 01, 2020.


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