Shekhar Priyadarshi, CFO at Keurig Dr Pepper (KDP), recently added 20,000 shares. The buy increased the CFO’s position by 200 percent, and came to a total cost just over $711,000.
The CFO was the last insider to buy, with a 10,000 share pickup in January valued at $35,000. The company’s Chief Supply Chain Officer was a sizeable buyer last year. Other company insiders, including major holder Mondelez International, have been sellers of shares in recent months.
Even with the recent institutional sale, insiders own 37.7 percent of the beverage company.
Shares of KDP are down about 12 percent over the past year, performing slightly worse than the S&P 500. Earnings have slid 46 percent, even as revenue shave risen by 12 percent, in part due to higher costs and a slower pace of sales.
Nevertheless, KDP owns a number of strong brands in the beverage space, and shares are reasonably valued at 14 times forward earnings.
Action to take: Long term investors may like shares at or under $35. The stock yields 2.3 percent right now, with a recent bump higher in the dividend.
For traders, shares have been somewhat range-bound over the past year, and are near their lows right now. The July $36 calls, last going for about $1.00, could deliver mid-double-digit returns or better in the coming months if shares start moving off the lower end of their range.
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.