Brokerages Set Keurig Dr Pepper Inc. (NASDAQ:KDP) Target Price at $38.44

Keurig Dr Pepper Inc. (NASDAQ:KDP) has been given a consensus rating of “Buy” by the eleven brokerages that are currently covering the company, Marketbeat reports. Five investment analysts have rated the stock with a hold rating and five have issued a buy rating on the company. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $38.44.

A number of analysts recently commented on the stock. Royal Bank of Canada boosted their target price on shares of Keurig Dr Pepper from $40.00 to $41.00 and gave the stock an “outperform” rating in a report on Friday, October 29th. Barclays boosted their target price on shares of Keurig Dr Pepper from $39.00 to $41.00 and gave the stock an “overweight” rating in a report on Monday, November 1st. TheStreet upgraded shares of Keurig Dr Pepper from a “d” rating to a “b-” rating in a report on Thursday, July 29th. Deutsche Bank Aktiengesellschaft boosted their price target on shares of Keurig Dr Pepper from $35.00 to $36.00 and gave the company a “hold” rating in a report on Monday, September 20th. Finally, Zacks Investment Research upgraded shares of Keurig Dr Pepper from a “sell” rating to a “hold” rating and set a $38.00 price target on the stock in a report on Friday, November 12th.

NASDAQ KDP opened at $35.62 on Monday. The company has a debt-to-equity ratio of 0.48, a current ratio of 0.41 and a quick ratio of 0.27. The company’s 50 day simple moving average is $35.03 and its 200 day simple moving average is $35.23. Keurig Dr Pepper has a 12 month low of $29.89 and a 12 month high of $37.11. The company has a market capitalization of $50.51 billion, a P/E ratio of 29.44, a PEG ratio of 2.40 and a beta of 0.68.

Keurig Dr Pepper (NASDAQ:KDP) last released its earnings results on Thursday, October 28th. The company reported $0.44 EPS for the quarter, hitting analysts’ consensus estimates of $0.44. Keurig Dr Pepper had a net margin of 13.94% and a return on equity of 9.10%. The business had revenue of $3.25 billion for the quarter, compared to the consensus estimate of $3.16 billion. During the same period in the previous year, the firm earned $0.39 EPS. The business’s revenue for the quarter was up 7.6% on a year-over-year basis. On average, analysts anticipate that Keurig Dr Pepper will post 1.6 earnings per share for the current year.

The business also recently disclosed a quarterly dividend, which was paid on Friday, October 15th. Shareholders of record on Friday, October 1st were paid a $0.1875 dividend. The ex-dividend date was Thursday, September 30th. This represents a $0.75 annualized dividend and a yield of 2.11%. Keurig Dr Pepper’s dividend payout ratio is presently 61.98%.

Keurig Dr Pepper declared that its board has authorized a stock buyback plan on Friday, October 1st that authorizes the company to repurchase $4.00 billion in outstanding shares. This repurchase authorization authorizes the company to buy up to 8.1% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its shares are undervalued.

In related news, Director Robert S. Singer sold 5,000 shares of the company’s stock in a transaction on Monday, November 8th. The shares were sold at an average price of $36.40, for a total transaction of $182,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider Herbert Derek Hopkins sold 38,513 shares of the company’s stock in a transaction on Friday, September 10th. The stock was sold at an average price of $35.04, for a total transaction of $1,349,495.52. The disclosure for this sale can be found here. In the last quarter, insiders sold 48,513 shares of company stock worth $1,713,096. Company insiders own 1.00% of the company’s stock.

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. DSM Capital Partners LLC raised its stake in Keurig Dr Pepper by 12,863.4% during the 3rd quarter. DSM Capital Partners LLC now owns 3,570,116 shares of the company’s stock valued at $121,803,000 after purchasing an additional 3,542,576 shares during the last quarter. FMR LLC raised its stake in Keurig Dr Pepper by 14.3% during the 2nd quarter. FMR LLC now owns 28,040,471 shares of the company’s stock valued at $988,146,000 after purchasing an additional 3,497,721 shares during the last quarter. Blackstone Inc acquired a new position in Keurig Dr Pepper during the 2nd quarter valued at $116,292,000. BlackRock Inc. raised its stake in Keurig Dr Pepper by 10.4% during the 3rd quarter. BlackRock Inc. now owns 33,607,887 shares of the company’s stock valued at $1,148,049,000 after purchasing an additional 3,167,455 shares during the last quarter. Finally, Capital World Investors raised its stake in Keurig Dr Pepper by 5.9% during the 3rd quarter. Capital World Investors now owns 51,317,753 shares of the company’s stock valued at $1,753,014,000 after purchasing an additional 2,853,107 shares during the last quarter. 49.23% of the stock is owned by institutional investors and hedge funds.

Keurig Dr Pepper Company Profile

Keurig Dr Pepper, Inc engages in the production and marketing of non-alcoholic beverages. It operates through the following segments: Coffee Systems, Packaged Beverages, Beverage Concentrates, and Latin America Beverages. The Coffee Systems segment includes manufacture and distribution of finished goods relating to coffee, pods, and brewers.

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Analyst Recommendations for Keurig Dr Pepper (NASDAQ:KDP)

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