Dr Pepper Snapple Group Inc. (DPS) Upgraded at Zacks Investment Research
Zacks Investment Research upgraded shares of Dr Pepper Snapple Group Inc. (NYSE:DPS) from a hold rating to a buy rating in a research report released on Tuesday morning. The firm currently has $102.00 target price on the stock.
According to Zacks, “Dr Pepper has robust long-term fundamentals – strong position in the flavored CSD market, aggressive RCI cost savings and regular cash returns to its shareholders. Continuing the strong performance seen in 2015, the company delivered solid top-line and bottom-line results in the first half of 2016. Solid execution, pricing gains, innovations, strong NCB performance, powerful marketing programs and productivity improvements have been driving strong sales and earnings growth for Dr Pepper since 2015. Moreover, Dr Pepper raised its earnings expectations for 2016 twice this year. Dr Pepper’s allied brands have been an important driver of volume growth and profits in recent quarters. However, sluggish volumes of its carbonated beverages, including the diet versions, due to CSD category headwinds, raises concerns.”
A number of other brokerages also recently issued reports on DPS. Citigroup Inc. lifted their price target on shares of Dr Pepper Snapple Group from $97.00 to $102.00 and gave the stock a neutral rating in a research note on Thursday, July 28th. BMO Capital Markets restated a market perform rating on shares of Dr Pepper Snapple Group in a research report on Friday, July 15th. Goldman Sachs Group Inc. restated a sell rating and set a $95.00 price objective (up previously from $89.00) on shares of Dr Pepper Snapple Group in a research report on Friday, July 15th. Credit Suisse Group AG started coverage on shares of Dr Pepper Snapple Group in a research report on Thursday, September 15th. They set an outperform rating and a $108.00 price objective for the company. Finally, Susquehanna restated a hold rating on shares of Dr Pepper Snapple Group in a research report on Wednesday, September 7th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and seven have given a buy rating to the company’s stock. Dr Pepper Snapple Group currently has an average rating of Hold and an average target price of $96.86.
Shares of Dr Pepper Snapple Group (NYSE:DPS) opened at 92.00 on Tuesday. The firm has a market cap of $17.06 billion, a price-to-earnings ratio of 21.07 and a beta of 0.32. Dr Pepper Snapple Group has a 1-year low of $76.80 and a 1-year high of $98.80. The stock has a 50 day moving average of $93.71 and a 200-day moving average of $92.97.
Dr Pepper Snapple Group (NYSE:DPS) last issued its quarterly earnings results on Wednesday, July 27th. The company reported $1.25 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.20 by $0.05. Dr Pepper Snapple Group had a net margin of 13.04% and a return on equity of 37.43%. The company earned $1.70 billion during the quarter, compared to the consensus estimate of $1.68 billion. During the same quarter in the previous year, the firm earned $1.13 earnings per share. The firm’s quarterly revenue was up 2.4% on a year-over-year basis. Equities analysts anticipate that Dr Pepper Snapple Group will post $4.37 EPS for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 5th. Shareholders of record on Tuesday, September 13th will be paid a $0.53 dividend. The ex-dividend date is Friday, September 9th. This represents a $2.12 annualized dividend and a yield of 2.30%. Dr Pepper Snapple Group’s dividend payout ratio is currently 48.51%.
In other news, insider David Thomas sold 2,000 shares of the company’s stock in a transaction on Friday, August 12th. The shares were sold at an average price of $97.20, for a total transaction of $194,400.00. Following the transaction, the insider now directly owns 40,000 shares of the company’s stock, valued at approximately $3,888,000. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, insider Martin M. Ellen sold 15,462 shares of the company’s stock in a transaction on Thursday, July 28th. The stock was sold at an average price of $96.63, for a total transaction of $1,494,093.06. Following the transaction, the insider now directly owns 5,462 shares in the company, valued at $527,793.06. The disclosure for this sale can be found here. 0.62% of the stock is currently owned by company insiders.
Several institutional investors have recently bought and sold shares of DPS. Renaissance Technologies LLC acquired a new stake in shares of Dr Pepper Snapple Group during the first quarter worth approximately $67,450,000. Bank of Montreal Can acquired a new stake in shares of Dr Pepper Snapple Group during the second quarter worth approximately $194,014,000. Gerstein Fisher boosted its stake in shares of Dr Pepper Snapple Group by 1.3% in the second quarter. Gerstein Fisher now owns 3,437 shares of the company’s stock worth $332,000 after buying an additional 45 shares during the last quarter. Quadrature Capital Ltd acquired a new stake in shares of Dr Pepper Snapple Group during the first quarter worth approximately $6,315,000. Finally, Mckinley Capital Management LLC Delaware boosted its stake in shares of Dr Pepper Snapple Group by 17.0% in the first quarter. Mckinley Capital Management LLC Delaware now owns 229,644 shares of the company’s stock worth $20,535,000 after buying an additional 33,304 shares during the last quarter. 92.41% of the stock is currently owned by institutional investors and hedge funds.
About Dr Pepper Snapple Group
Dr Pepper Snapple Group, Inc is an owner, manufacturer and distributor of non-alcoholic beverages in the United States, Canada and Mexico. The Company’s products consist of flavored (non-cola) carbonated soft drinks (CSDs) and non-carbonated beverages (NCBs), including ready-to-drink teas, juices, juice drinks, water and mixers.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for Dr Pepper Snapple Group Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Dr Pepper Snapple Group Inc. and related companies with MarketBeat.com's FREE daily email newsletter.