Stock of the Day

June 15, 2021

Keurig Dr Pepper (KDP)

$34.04
+$0.90 (+2.7%)
Market Cap: $44.95B

About Keurig Dr Pepper

Keurig Dr Pepper Inc. owns, manufactures, and distributors beverages and single serve brewing systems in the United States and internationally. It operates through three segments: U.S. Refreshment Beverages, U.S. Coffee, and International. The U.S. Refreshment Beverages segment manufactures and distributes branded concentrates, syrup, and finished beverages. Its U.S. Coffee segment offers finished goods relating to K-Cup pods, single serve brewers, specialty coffee, and ready to drink coffee products through Keurig.com website. The International segment provides sales in Canada, Mexico, the Caribbean, and other international markets from the manufacture and distribution of branded concentrates, syrup, and finished beverages; and sales in Canada from the manufacture and distribution of finished goods relating to the Company's single serve brewers, KCup pods, and other coffee products. It serves retailers, third-party bottlers and distributors, retail partners, hotel chains, office coffee distributors, and end-use consumers. The company offers its products under the Dr Pepper, Canada Dry, Green Mountain Coffee Roasters, Snapple, Mott's, The Original Donut Shop, Clamato, and Core Hydration brand name. Keurig Dr Pepper Inc. was founded in 1981 and is headquartered in Burlington, Massachusetts.

Keurig Dr Pepper Bull Case

Here are some ways that investors could benefit from investing in Keurig Dr Pepper Inc.:

  • The stock is currently trading at $31.04, which may present a buying opportunity for investors looking for value in the beverage sector.
  • Keurig Dr Pepper Inc. has a strong market capitalization of approximately $42.10 billion, indicating a solid position in the industry and potential for growth.
  • Recent analyst ratings show a favorable outlook, with nine analysts giving a buy rating, suggesting confidence in the company's future performance.
  • The company has a consistent dividend payout of $0.23 per share, translating to an annualized dividend yield of 2.96%, which can provide a steady income stream for investors.
  • Insider activity is positive, with major shareholder Bevco B.V. Jab recently acquiring over 3.6 million shares, indicating confidence in the company's future prospects.

Keurig Dr Pepper Bear Case

Investors should be bearish about investing in Keurig Dr Pepper Inc. for these reasons:

  • Recent target price reductions by analysts, such as TD Cowen lowering their target from $39.00 to $36.00, may indicate concerns about the company's short-term performance.
  • The stock has experienced volatility, with a 52-week low of $28.61, suggesting potential risks for investors regarding price stability.
  • The company's current ratio of 0.53 indicates potential liquidity issues, as it may struggle to cover short-term liabilities with its current assets.
  • With a debt-to-equity ratio of 0.50, there is a moderate level of debt, which could pose risks if the company faces financial challenges.
  • Despite a positive outlook from some analysts, the average target price of $37.50 suggests limited upside potential from the current trading price.

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