Bullish Keurig Dr Pepper Insiders Loaded Up On US$21.1m Of Stock

Quite a few insiders have dramatically grown their holdings in Keurig Dr Pepper Inc. (NASDAQ:KDP) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Keurig Dr Pepper

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 insider G. Harf bought US$5.0m worth of shares at a price of US$29.10 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$35.73. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Happily, we note that in the last year insiders paid US$21m for 718.50k shares. But they sold 122.91k shares for US$4.1m. In the last twelve months there was more buying than selling by Keurig Dr Pepper insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Keurig Dr Pepper is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Keurig Dr Pepper

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Keurig Dr Pepper insiders own 1.2% of the company, currently worth about US$597m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Keurig Dr Pepper Tell Us?

It doesn't really mean much that no insider has traded Keurig Dr Pepper shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like Keurig Dr Pepper insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Keurig Dr Pepper has 2 warning signs (1 is concerning!) that deserve your attention before going any further with your analysis.

Of course Keurig Dr Pepper may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.