A cluster of insiders picked up shares of Keurig Dr Pepper (KDP) last week. That includes the company’s CFO, who bought 5,074 shares at a cost of $165,511.
And the firm’s Chief Supply Chain Officer bought 12,000 shares, paying just under $394,000. The company’s R&D Officer bought 8,561 shares at a cost of $276,948. And finally, the company’s General Council topped them all with a 13,957 share buy costing $458,612.
Overall, company insiders at the global beverage firm own about 35.6 percent of shares.
Keurig Dr Pepper is down about 12 percent over the past year, as higher costs have weighed on earnings, which fell 20 percent. That more than offset a 9 percent rise in revenue, as the company was able to increase prices on consumers. The company isn’t the largest player in the soda or coffee business, but is a major player and enjoys a strong brand as a result.
Action to take: As one of the world’s leading beverage brands, KDP should be able to earn a high profit margin over time. Investors may like shares here or on any further drop lower. At present, the stock yields about 2.4 percent.
For traders, shares are starting to trend higher after dropping following the most recent earnings. The July $35 calls, last going for about $0.35, offer mid-to-high double-digit returns depending on how quickly shares move higher in the coming months.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.