Karin Rotem-Wildeman, Chief R&D Officer at Keurig Dr Pepper (KDP), recently bought 7,050 shares. The buy increased the officer’s stake by 9 percent, and came to a total cost of $211,148.
Rotem-Wildeman was the last buyer with a 53,837 share pickup in June, which came to $1.84 million. Otherwise, company executives have been regular buyers of shares this year, more than offsetting a few insider sales.
Overall, company insiders own a sizeable 31.6 percent of shares.
The beverage producer is down 16 percent over the past year, even as earnings jumped nearly 188 percent and revenues rose by 5 percent.
That disconnect between the company’s solid fundamentals and a declining share price has pushed the stock to 16 times forward earnings.
Action to take: Investors may like shares for some short-term upside, as well as the fact that beverage companies are defensive and should hold up if markets see further downside from here.
At present, Keurig Dr Pepper pays a 2.8 percent dividend yield, and they’ve raised that payout over time.
For traders, the January 2024 $33 calls, last trading for about $0.30, could see high-double-digit returns or better on a rally into next year.
Shares have long-term strength in the $33 range, so this looks like a reasonable trade getting off of today’s oversold prices.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.