Maurice Milikin, Chief Supply Chain officer at Keurig Dr Pepper (KDP), recently picked up 12,979 shares. The buy doubled the executive’s position, and came to a total cost of just over $466,000.
The officer made the first buy back in late June. Other company executives have been active this year on the buy side, with the company’s Chief Strategy Officer picking up nearly $2.4 million in shares back in May, and the company’s Chief Legal Officer buying nearly 15,000 shares so far this year.
Overall, insiders at the beverage company own about 40.7 percent of shares.
Shares are slightly up over the past year, outperforming the broader S&P 500. Earnings have jumped 80 percent, even as revenues have risen just 6 percent. The company sports a high profit margin for the industry, coming in just under 19 percent.
Action to take: With ownership of a number of leading beverage brands, and with shares going from 34 times earnings to 21 times earnings in the past year, the stock looks attractive for investors to accumulate. Shares also yield about 2.1 percent at current prices.
For traders, the January 2023 $40 calls are an inexpensive way to bet that shares move higher in the back half of the year. The option last went for about $0.95. Traders can likely nab mid-double-digit returns on the option. Just look to buy on down days for the market to keep costs down.
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.