Maurice Milikin, Chief Supply Chain Officer at Keurig Dr Pepper (KDP), recently picked up 12,979 shares. The buy increased his holdings by about 17 percent, and came to a total cost of just over $517,000.
The buy is a follow-up, as the officer has been a steady buyer since June. Other company executives have also been buyers in recent months, with one company director making a sale. Over the past three years, insider buying has far exceeded sales.
Overall, officers and directors at the company own about 40.8 percent of shares.
The beverage giant is up about 17 percent in the past year. While earnings have been cut in half overall, revenue has held up well with a 13 percent increase.
Action to take: The company is a leading player in the beverage industry. Shares are a little pricier than the overall market at 24 times forward earnings. However, the company’s brands and low-cost products give it considerable pricing power against inflation. That makes shares an attractive long-term holding, and investors can get a 1.9 percent starting dividend right now.
For traders, shares should continue to trend higher. The January 2023 $44 calls, last going for about $0.60, offer mid-to-high double-digit returns in the coming months. A 10 percent move in shares would send the position in-the-money.
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.