Capital Research & Management Co recently announced the acquisition of new stake in Keurig Dr Pepper Inc (NASDAQ:KDP). The institutional investor has increased its shareholding in the Consumer Defensive company by 16.96% to 94.29 million shares with purchase of 13.68 million shares. This fresh investment now brings its stake to 6.74% valued currently at $2.86 billion. In addition, The Vanguard Group, Inc. raised its holdings by 5.02 million to 78.18 million shares. And Capital Research & Management Co has lifted its position by 7.22% or 3.73 million shares – to 55.33 million shares.
With over 5.34 million Keurig Dr Pepper Inc (KDP) shares trading Tuesday and a closing price of $31.91 on the day, the dollar volume was approximately $170.37 million. The shares have shown a negative half year performance of -0.34% and its price on 11/21/23 gained nearly 0.41%. Currently, there are 1.41B common shares owned by the public and among those 991.81M shares have been available to trade.
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An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 20 analysts who have offered their price forecasts for KDP have a consensus price objective of $35.87. The analysts have set the share’s price value over the next 12 months at a high of $42.00 and a low of $27.00. The average price target is 21.35% above its recent price level and a downside to the estimated low will see the stock lose -18.19% over that period. But an upside of 24.02% will see the stock hit the forecast high price target while median target price for the stock is $37.00.
Insiders at the company have transacted a total of 88 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 55 of these insider trades were purchases, accounting for 2,347,627 shares. Insider sales of the common stock occurred on 33 occasions, with total insider shares sold totaling 88,592,365 shares.
The top 3 mutual fund holders in Keurig Dr Pepper Inc are Washington Mutual Investors Fund, Vanguard Total Stock Market ETF, and Vanguard 500 Index Fund. Washington Mutual Investors Fund owns 41.8 million shares of the company’s stock, all valued at over $1.27 billion. The company bought an additional 5.78 million shares recently to bring their total holdings to about 2.99% of the shares outstanding. Vanguard Total Stock Market ETF bought 0.13 million shares to see its total holdings expand to 30.62 million shares valued at over $928.76 million and representing 2.19% of the shares outstanding. Vanguard 500 Index Fund bought 0.11 million shares to bring its total holdings to over 24.29 million shares at a value of $736.73 million. Vanguard 500 Index Fund now owns shares totaling to 1.74% of the shares outstanding.
Shares of Keurig Dr Pepper Inc (NASDAQ: KDP) opened at $31.70, down -$0.08 from a prior closing price of $31.78. However, the script later moved the day high at 32.02, up 0.41%. The company’s stock has a 5-day price change of 0.09% and -5.17% over the past three months. KDP shares are trading -10.52% year to date (YTD), with the 12-month market performance down to -14.72% lower. It has a 12-month low price of $27.66 and touched a high of $38.94 over the same period. KDP has an average intraday trading volume of 8.54 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 3.67%, 3.15%, and -2.83% respectively.
Institutional ownership of Keurig Dr Pepper Inc (NASDAQ: KDP) shares accounts for 63.24% of the company’s 1.41B shares outstanding. Mutual fund holders own 31.84%, while other institutional holders and individual stakeholders account for 43.22% and 20.37% respectively.
It has a market capitalization of $44.62B and a beta (3y monthly) value of 0.67. The stock’s trailing 12-month PE ratio is 23.25, while the earnings-per-share (ttm) stands at $1.37. The company has a PEG of 3.32 and a Quick Ratio of 0.22 with the debt-to-equity ratio at 0.57. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.35% over the week and 1.75% over the month.
Analysts forecast that Keurig Dr Pepper Inc (KDP) will achieve an EPS of $0.54 for the current quarter, $0.36 for the next quarter and $1.91 for 2024. The lowest estimate earnings-per-share for the quarter is $0.53 while analysts give the company a high EPS estimate of $0.55. Comparatively, EPS for the current quarter was $0.5 a year ago. Earnings per share for the fiscal year are expected to increase by 5.99%, and 7.56% over the next financial year. EPS should grow at an annualized rate of 7.01% over the next five years, compared to -29.79% over the past 5-year period.
If you are looking to buy this stock, then you may note that the average analyst recommendation by 20 brokerage firm advisors rate Keurig Dr Pepper Inc (KDP) as a “Strong Buy” at a consensus score of 1.95. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 6 of the 20 advise that investors “hold,” and 1 rated it as a “Sell.”
Looking at the support for the KDP, a number of firms have released research notes about the stock. Jefferies stated their Buy rating for the stock in a research note on November 13, 2023, with the firm’s price target at $39.
