Are You Looking To Buy Keurig Dr Pepper Inc. (KDP)? First, Read This

Keurig Dr Pepper Inc. (NASDAQ:KDP) finished Thursday with a subtraction of -$0.22 to close at $33.43, a downside of -0.65 percent. An average of 7,384,560 shares of common stock have been traded in the last five days. There was a fall of -$0.24 in the past week, and it reached a new high 1 time over the past 12 months. The last 20 days have seen an average of 8,783,840 shares traded, while the 50-day average volume stands at 9,426,116.

KDP stock has increased by 2.74% in the last month. The company shares reached their 1-month lowest point of $32.11 on 07/25/23. With the stock rallying to its 52-week high on 01/09/23, shares of the company touched a low of $30.47 and a high of $39.82 in 52 weeks. It has reached a new high 4 times so far this year and lost -6.25% or -$2.23 in price. In spite of this, the price is down -16.05% from the 52-week high.

Insider Transactions

KDP stock investors should be aware that Keurig Dr Pepper Inc. (KDP) stock had its last reported insider trading activity 106 days ago on Aug 03. In this transaction, the insider spent $453,460. Chief Corp. Affairs Officer, Sceppaguercio-Gever Maria A., disposed of 10,000 shares at a price of $32.88 on May 08. The insider now owns more than $328,800 worth of shares. Prior to that, Chief Corp. Affairs Officer Sceppaguercio-Gever Maria A. went on to Sale 10,000 shares at $33.00 each on May 05. An amount of $330,000 was transacted.

Valuation Metrics

Keurig Dr Pepper Inc. (KDP) has a trailing price-to-earnings (P/E) ratio of 29.56. The stock’s beta is 0.58. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 3.20, the price-to-book (PB) ratio at 1.85, and the price-to-cash flow ratio at 29.81.

The company has a payout ratio of 70.30%. The company’s most recent quarterly dividend payment was $0.20 a share, without any change from last year. Its latest increase dividend $0.0125 reported on Wednesday September 14 2022.

Financial Health

The quick ratio of Keurig Dr Pepper Inc. for the three months ended June 29 was 0.20, and the current ratio was 0.40, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.42 and a total debt to equity ratio of 0.53 for the quarter ending June 29. Its gross profit as reported stood at $7.32 billion compared to revenue of $14.06 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Keurig Dr Pepper Inc.’s return on assets was 3.10%.

Earnings Surprise

For the three-month period that ended June 29, Keurig Dr Pepper Inc. had $9.93 billion in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $503.0 million in the quarter, while revenues were grew 56.66%. The analyst consensus anticipated Keurig Dr Pepper Inc.’s latest quarter earnings to come in at $0.4 per share, but it turned out to be $0.42, a 5.00% surprise. For the quarter, EBITDA amounted to $944.0 million. Shareholders own equity worth $1.4 billion.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Keurig Dr Pepper Inc. (KDP) price momentum. RSI 9-day as of the close on 24 August was 47.87%, suggesting the stock is Neutral, with historical volatility in this time frame at 9.64%.

As of today, KDP’s price is $33.58 -0.71% or -$0.24 from its 5-day moving average. KDP is currently trading -0.98% lower than its 20-day SMA and -5.24% lower than its 100-day SMA. However, the stock’s current price level is +6.06% above the SMA50 and -9.60% below the SMA200.

The stochastic %K and %D were 24.82% and 26.68%, respectively, and the average true range (ATR) was 0.45. With the 14-day stochastic at 18.52% and the average true range at 0.47, the RSI (14) stands at 52.12%. The stock has reached -0.12 on the 9-day MACD Oscillator while the 14-day reading was at -0.11.