Stock of the Day

June 15, 2021

Keurig Dr Pepper (KDP)

$32.66
+$0.10 (+0.3%)
Market Cap: $44.28B

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 has received multiple upgrades from analysts, with target prices recently set between $38.00 and $42.00, indicating strong market confidence in its growth potential.
  • The current stock price is around $39.33, which is close to the average target price set by analysts, suggesting it may be a good entry point for new investors.
  • Keurig Dr Pepper Inc. has a diverse product portfolio, operating in both refreshment beverages and coffee segments, which can help mitigate risks associated with market fluctuations.
  • Insider ownership is relatively low at 0.40%, which may indicate that the company is open to external investment and growth opportunities without heavy insider influence.
  • Recent upgrades to "strong-buy" ratings from analysts reflect positive sentiment and potential for significant returns in the near future.

Keurig Dr Pepper Bear Case

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

  • Insider selling has been notable, with significant shares sold recently, which could signal a lack of confidence among those closest to the company.
  • The company has experienced a decrease in insider ownership, with the chairman's stake dropping by 11.39%, which may raise concerns about long-term commitment from leadership.
  • Despite positive analyst ratings, the stock has shown volatility, which could pose risks for investors looking for stable returns.
  • With a consensus rating of "Moderate Buy," there may be a lack of overwhelming confidence in the stock's immediate performance compared to other investment opportunities.
  • The beverage industry is highly competitive, and any shifts in consumer preferences could impact Keurig Dr Pepper Inc.'s market position and profitability.
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