Zacks Investment Research lowered shares of Keurig Dr Pepper (NYSE:KDP) from a hold rating to a strong sell rating in a research note published on Thursday.
According to Zacks, “Despite strong market share gains and unit volume growth for all segments, lower realized prices and unfavorable currency impacted sales for the Coffee Systems segment. Moreover, pricing actions initiated in third-quarter 2018 could not fully offset higher input costs and logistics, which hurt the segment’s operating margins. Further, the company is not immune to the CSD category headwinds. However, Keurig Dr Pepper surpassed the industry in the last three months, backed by progress on the integration of the merged companies and robust third-quarter 2018 results. Both top and bottom lines improved year over year while earnings beat estimates in the third quarter. The top line gained from robust volume/mix and significant market share gains across major categories while operating income growth and lower taxes benefited the bottom line. Additionally, focus on partnerships and acquisitions remains its key growth strategy.”
Several other equities research analysts also recently issued reports on KDP. Guggenheim initiated coverage on shares of Keurig Dr Pepper in a research note on Thursday, September 13th. They set a neutral rating and a $22.00 price objective for the company. ValuEngine upgraded shares of Keurig Dr Pepper from a sell rating to a hold rating in a research note on Tuesday, October 2nd. Macquarie set a $24.00 price objective on shares of Keurig Dr Pepper and gave the stock a hold rating in a research note on Friday, October 12th. Gabelli downgraded shares of Keurig Dr Pepper from a buy rating to a hold rating and set a $28.48 price objective for the company. in a research note on Thursday, November 8th. Finally, Citigroup boosted their price objective on shares of Keurig Dr Pepper from $26.00 to $30.00 and gave the stock a hold rating in a research note on Tuesday, November 13th. Two equities research analysts have rated the stock with a sell rating, seven have given a hold rating and six have given a buy rating to the company’s stock. Keurig Dr Pepper presently has an average rating of Hold and a consensus price target of $28.20.
KDP opened at $27.00 on Thursday. The company has a quick ratio of 0.28, a current ratio of 0.40 and a debt-to-equity ratio of 0.65. Keurig Dr Pepper has a 52-week low of $20.46 and a 52-week high of $126.65. The company has a market cap of $37.23 billion, a price-to-earnings ratio of 5.95, a price-to-earnings-growth ratio of 1.25 and a beta of 0.52.
Keurig Dr Pepper (NYSE:KDP) last released its quarterly earnings data on Wednesday, November 7th. The company reported $0.30 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.28 by $0.02. Keurig Dr Pepper had a net margin of 13.55% and a return on equity of 15.76%. The company had revenue of $2.73 billion during the quarter, compared to the consensus estimate of $2.87 billion. During the same period in the previous year, the firm earned $0.21 earnings per share. Keurig Dr Pepper’s revenue for the quarter was up 139.6% on a year-over-year basis. On average, research analysts predict that Keurig Dr Pepper will post 1.04 earnings per share for the current fiscal year.
The company also recently announced a quarterly dividend, which will be paid on Friday, January 18th. Stockholders of record on Friday, January 4th will be paid a $0.15 dividend. The ex-dividend date of this dividend is Thursday, January 3rd. This represents a $0.60 annualized dividend and a dividend yield of 2.22%. Keurig Dr Pepper’s dividend payout ratio (DPR) is presently 13.22%.
In related news, Director Robert S. Singer purchased 5,000 shares of the business’s stock in a transaction that occurred on Friday, November 9th. The shares were purchased at an average cost of $28.35 per share, with a total value of $141,750.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Brian Andrew Loucks purchased 1,600 shares of the business’s stock in a transaction that occurred on Friday, December 7th. The stock was bought at an average cost of $25.85 per share, for a total transaction of $41,360.00. The disclosure for this purchase can be found here. Insiders bought 62,830 shares of company stock valued at $1,679,828 over the last 90 days. Insiders own 0.58% of the company’s stock.
A number of institutional investors and hedge funds have recently bought and sold shares of KDP. Columbia Asset Management acquired a new stake in Keurig Dr Pepper in the third quarter valued at $107,000. Whittier Trust Co. of Nevada Inc. acquired a new stake in Keurig Dr Pepper in the third quarter valued at $116,000. Ledyard National Bank acquired a new stake in Keurig Dr Pepper in the third quarter valued at $117,000. Moody National Bank Trust Division acquired a new stake in Keurig Dr Pepper in the fourth quarter valued at $128,000. Finally, Harvest Fund Management Co. Ltd acquired a new stake in Keurig Dr Pepper in the third quarter valued at $141,000. 10.77% of the stock is currently owned by hedge funds and other institutional investors.
Keurig Dr Pepper Company Profile
Keurig Dr Pepper Inc engages in the brewing system and specialty coffee businesses in the United States and Canada. The company sources, produces, and sells coffee, hot cocoa, teas, and other beverages in K-Cup, Vue, Rivo, K-Carafe, and K-Mug pods brands; coffee in traditional packaging, including bags and fractional packs; and other specialty beverages in pods.
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