Stock Analysis

Bullish insiders at Keurig Dr Pepper Inc. (NASDAQ:KDP) loaded up on US$6.7m of stock earlier this year

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NasdaqGS:KDP
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Over the last year, a good number of insiders have significantly increased their holdings in Keurig Dr Pepper Inc. (NASDAQ:KDP). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

If you're not interested in researching KDP's insider transactions, we have a free list of interesting investing ideas to potentially inspire your next investment!

The Last 12 Months Of Insider Transactions At Keurig Dr Pepper

In the last twelve months, the biggest single purchase by an insider was when Chief Strategy Officer Justin Whitmore bought US$2.5m worth of shares at a price of US$37.52 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$36.12). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 178.33k shares worth US$6.7m. But they sold 53.78k shares for US$2.0m. In the last twelve months there was more buying than selling by Keurig Dr Pepper insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:KDP Insider Trading Volume September 30th 2022

Keurig Dr Pepper is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Keurig Dr Pepper Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Keurig Dr Pepper. Chief Supply Chain Officer Maurice Milikin spent US$3.4m on stock. On the other hand, Independent Director Robert Singer netted US$135k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership Of Keurig Dr Pepper

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Keurig Dr Pepper insiders own 1.0% of the company, currently worth about US$529m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Keurig Dr Pepper Insiders?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Keurig Dr Pepper. Looks promising! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Keurig Dr Pepper you should be aware of.

But note: Keurig Dr Pepper may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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About NasdaqGS:KDP

Keurig Dr Pepper

Keurig Dr Pepper Inc. operates as a beverage company in the United States and internationally.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation2
Future Growth1
Past Performance2
Financial Health3
Dividends3

Read more about these checks in the individual report sections or in our analysis model.

Mediocre balance sheet second-rate dividend payer.