On September 15, 2023, Matthew Archambault, President, Commercial of Keurig Dr Pepper Inc (KDP, Financial), sold 40,000 shares of the company. This move comes as part of a series of transactions by the insider over the past year, which have seen a total of 56,700 shares sold and no shares purchased.
Keurig Dr Pepper Inc is a leading beverage company in North America, with annual revenue in excess of $11 billion. The company's portfolio includes more than 125 owned, licensed, and partner brands, designed to satisfy virtually any consumer need, any time, and anywhere.
The insider transaction history for Keurig Dr Pepper Inc shows a mixed trend. Over the past year, there have been 15 insider buys and 11 insider sells. The insider's recent sell is part of this trend and could be an indication of the insider's sentiment towards the company's stock.
On the day of the insider's recent sell, shares of Keurig Dr Pepper Inc were trading for $33.61 apiece, giving the stock a market cap of $46.53 billion. This is a significant valuation, and it's worth noting that the insider chose to sell at this price.
The price-earnings ratio of Keurig Dr Pepper Inc is 29.23, which is higher than the industry median of 17.96 and higher than the company’s historical median price-earnings ratio. This could suggest that the stock is overvalued, which might explain why the insider decided to sell.
However, according to the GuruFocus Value, which is an intrinsic value estimate developed by GuruFocus, the stock is modestly undervalued. With a price of $33.61 and a GuruFocus Value of $41.44, Keurig Dr Pepper Inc has a price-to-GF-Value ratio of 0.81. This suggests that the stock could still offer value to investors, despite the insider's recent sell.
The GF Value is calculated based on historical multiples that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts.
In conclusion, the insider's recent sell of Keurig Dr Pepper Inc shares could be seen as a bearish signal, especially considering the stock's high price-earnings ratio. However, the stock's modest undervaluation according to the GuruFocus Value suggests that there could still be potential for investors. As always, investors should conduct their own research and consider multiple factors before making investment decisions.
