Undoubtedly, Keurig Dr Pepper Inc. (NYSE:KDP) has been one of the most volatile stocks in the market in recent times, and the way it handled Thursday’s volatility suggests the stock may be poised to decline heading into short-terms. The shares dropped -0.47 points or -1.78 percent at $25.98 with a heavy trade volume of 4.265 million shares. After opening the session at $26.25, the shares went as high as $26.25 and as low as $25.31, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $36.1 billion and now has 1.39 billion shares outstanding. Keurig Dr Pepper Inc. (KDP) stock has lost -2.51 percent of market value in 21 trading days.
KDP stock has a trailing 3-year beta of 0.6, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $1.42 a share in the trailing twelve months. The stock’s value has surged 66.25 percent year to date (YTD) against a rise of 72.58 percent in 12 month’s time. The company’s shares still trade -9.82 percent away from its 1-year high of $28.81 and 73.99 percent up from 52-week low of $14.93. The average consensus rating on the company is 2.6, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Keurig Dr Pepper Inc. (KDP) will probably climb 7.78 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $32-month high price target. This represents a whopping 23.17 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $29, which represents a return potential of 11.62 percent when compared to the closing price of the stock of $25.98 on Thursday, December 06. The lowest price target for the stock is $21.5 — slightly more than -17.24 percent from KDP’s current share price.
History has shown that shares in Keurig Dr Pepper Inc. have gone down on 2 different earnings reaction days and are predicted to add 0.01 percent when the company reports upcoming earnings. Investors will get their next glimpse of KDP’s Q4 earnings on February 13. Analysts are forecasting revenue to climb 72.6 percent to $2.84B in the fiscal fourth quarter, while earnings are seen soaring by nearly -100 percent to $0 per share. It earned $0.3 per share, better than the $0.28, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $2.86B, better than the $2.85B analysts expected. Earnings are estimated to increase by -6.1 percent this year, 41.06 percent next year and continue to increase by 23 percent annually for the next 5 years.
Let’s take a look at some insider activity at Keurig Dr Pepper Inc. (NYSE:KDP) and see the pattern. The earliest insider trade took place on 12/06/2018. Singer Robert S gathered a total of 8.5 thousand shares of company at average share price of $25.98. The total for the purchase was set at $220.83 thousand. After this transaction, the Director account balance stood at 38.5 thousand shares. The stock lost 0 percent since that insider purchase. On 12/03/2018, Loucks Brian Andrew, President Keurig Appliances, purchased 6.9 thousand shares at a price per share of $25.92. This added 178.85 thousand shares to the insider’s fortune and the stock saw a 0.23 percent rally in value since the news became public. This transaction left 83.86 thousand shares in the President Keurig Appliances account.
On 11/28/2018, Director Singer Robert S performed a purchase transaction worth $132.9 thousand. This purchase at $26.58 each has added 5 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -2.26 percent decrease since the transaction was reported. The insider now is left with 30 thousand shares remaining in the account. Loucks Brian Andrew, who performs the President Keurig Appliances job, bought 2.5 thousand shares for $65.43 thousand. The acquisition occurred on 11/21/2018 was priced at $26.17 per share. The share price plunged -0.73 percent since the reporting date. Loucks Brian Andrew now left with a stake of 76.96 thousand KDP stock worth $2 million after the insider buying.
The stock is currently hovering around the first support level of $25.44. Below this, the next support is placed in the zone of $24.91. Till the time, the KDP stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 47.29 on daily chart, which may remain a cause for concern. If the price breaks below $24.91 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $26.38 mark may result into a pull-back move towards $26.79 level.
Shares of Keurig Dr Pepper Inc. (KDP) are trading at a P/E ratio of 18.37 times earnings reported for the past 12 months. The industry KDP operates in has an average P/E of 36.74. Its P/E ratio went as low as 2.57X and as high as 3.78 over the 5-year span.Further, it is sporting a 5.75 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.97. 52.7 percent is the gross profit margin for Keurig Dr Pepper Inc. and operating margin sits at 14.9 percent. Along with this, the net profit margin is 7.6 percent.