Stock Analysis

Keurig Dr Pepper Insiders Placed Bullish Bets Worth US$17.6m

NasdaqGS:KDP
Source: Shutterstock

Multiple insiders secured a larger position in Keurig Dr Pepper Inc. (NASDAQ:KDP) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See 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. That implies that an insider found the current price of US$30.38 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Keurig Dr Pepper insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid US$18m for 605.45k shares. But insiders sold 89.51k shares worth US$3.0m. Overall, Keurig Dr Pepper insiders were net buyers during the last year. 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!

insider-trading-volume
NasdaqGS:KDP Insider Trading Volume January 13th 2025

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

Insider Ownership Of Keurig Dr Pepper

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. It's great to see that Keurig Dr Pepper insiders own 1.2% of the company, worth about US$510m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Keurig Dr Pepper Insider Transactions Indicate?

The fact that there have been no Keurig Dr Pepper insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Keurig Dr Pepper insiders feel good about the company's future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 2 warning signs for Keurig Dr Pepper (1 is a bit concerning!) and we strongly recommend you look at them before investing.

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.

Valuation is complex, but we're here to simplify it.

Discover if Keurig Dr Pepper might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

Access Free Analysis

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.