Keurig Dr Pepper Chief Operating Officer Acquires 33% More Stock

Keurig Dr Pepper Inc. (NASDAQ:KDP) shareholders (or potential shareholders) will be happy to see that the Chief Operating Officer, Timothy Cofer, recently bought a whopping US$3.1m worth of stock, at a price of US$31.17. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 33%.

View our latest analysis for Keurig Dr Pepper

Keurig Dr Pepper Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Director, Larry Young, for US$6.0m worth of shares, at about US$38.67 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$31.05. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 363.19k shares for US$12m. But insiders sold 208.83k shares worth US$7.8m. Overall, Keurig Dr Pepper insiders were net buyers during the last year. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Does Keurig Dr Pepper Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Keurig Dr Pepper insiders own 1.1% of the company, currently worth about US$478m 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 Do The Keurig Dr Pepper Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Keurig Dr Pepper. One for the watchlist, at least! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 2 warning signs for Keurig Dr Pepper (1 doesn't sit too well with us!) that we believe deserve your full attention.

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 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.