Rexford Capital Inc. has recently acquired a significant stake in Keurig Dr Pepper, Inc. (NASDAQ: KDP), purchasing a total of 21,452 shares during the third quarter. According to the latest filing with the Securities and Exchange Commission (SEC), this investment is valued at approximately $547,000. This move reflects growing interest from institutional investors in the beverage giant.
In addition to Rexford Capital’s acquisition, several other institutional investors have adjusted their positions in Keurig Dr Pepper. For instance, Vident Advisory LLC increased its stake by 85.1% in the first quarter, acquiring an additional 12,250 shares to bring its total to 26,641 shares, valued at $912,000. Similarly, the Royal Bank of Canada raised its holdings by 19.7%, now owning 1,882,948 shares worth $64.4 million after purchasing an additional 309,830 shares.
Focus Partners Advisor Solutions LLC also enhanced its position, increasing its stake by 25.9% to 14,130 shares valued at $484,000. Additionally, Amundi raised its position by 7.7%, resulting in ownership of 4,404,145 shares valued at $156.9 million. AQR Capital Management LLC lifted its stake by 39.4%, ending up with 1,735,674 shares valued at $59.4 million. Currently, institutional investors hold 93.99% of the company’s stock.
Analyst Ratings and Market Performance
Recent analyst ratings indicate a mixed outlook for Keurig Dr Pepper. Weiss Ratings reaffirmed a “hold (C-)” rating on October 31, while Barclays increased its target price from $26.00 to $30.00, maintaining an “equal weight” rating. Conversely, The Goldman Sachs Group lowered its price target from $34.00 to $29.00 and assigned a “neutral” rating. Bank of America also cut its target from $41.00 to $33.00 but maintained a “buy” rating. Jefferies Financial Group downgraded its rating from “buy” to “hold,” reducing the price objective from $39.00 to $32.00.
Currently, ten investment analysts rate the stock as a Buy, eight as a Hold, and two as a Sell, resulting in an average rating of “Hold” and a consensus price target of $34.87. On the market, Keurig Dr Pepper’s stock has seen fluctuations, recently opening at $27.73. The company has a fifty-two-week low of $25.03 and a high of $36.12. With a market capitalization of $37.67 billion, it has a P/E ratio of 23.91 and a PEG ratio of 1.93.
Recent Financial Performance and Dividend Announcement
Keurig Dr Pepper reported its quarterly earnings on October 27, 2023, revealing an earnings per share (EPS) of $0.54, meeting the consensus estimate. The firm achieved a net margin of 9.78% and a return on equity of 11.19%. Revenue for the quarter reached $4.31 billion, surpassing analyst estimates of $4.15 billion, and reflecting a 10.7% increase year-over-year.
Looking ahead, the company announced a quarterly dividend of $0.23, set to be paid on January 16, 2024, to shareholders of record on January 2, 2024. This dividend represents an annual yield of 3.3% and a payout ratio of 79.31%.
In other news, Vice President Angela A. Stephens recently sold 10,000 shares at an average price of $29.52, amounting to $295,200. Following the sale, she retains 54,200 shares valued at approximately $1.6 million, a decrease of 15.58% in her position. Currently, company insiders own 0.40% of the stock.
Founded in July 2018 through the merger of Keurig Green Mountain and Dr Pepper Snapple Group, Keurig Dr Pepper designs and distributes a wide range of beverages and equipment across North America. Its diverse offerings include single-serve coffee systems and a portfolio of carbonated and non-carbonated drink brands.
