1. Keurig Dr Pepper Inc. (NASDAQ:KDP)
Highest Individual Sale: $2,740,967,500.00
Number of Sales Above $30 million: 1
Market Capitalization: $45.23 billion
First among the 10 stocks with at least $30 million in insider sales since the beginning of the year is a leading beverage and coffeemaker, Keurig Dr Pepper. The company was formerly known as Green Mountain Coffee Roasters and Keurig Green Mountain. Established in 2018 through the merger of Keurig Green Mountain and Dr. Pepper Snapple Group, the company offers over 125 hot and cold beverages. It is home to the #1 single-serve coffee system in the U.S. (Keurig) and has propelled Dr. Pepper to become the second-largest soft drink brand in the country, surpassing Pepsi by the end of 2023. Keurig Dr Pepper is also one of the 10 stocks insiders spent the most money on recently and one of the 7 best sugar stocks to buy according to analysts.
Recently, Keurig Dr Pepper unveiled its new 2025 flavor lineup in the U.S., featuring well-known brands such as Dr. Pepper, 7UP, A&W, and Snapple. This release follows the success of Dr. Pepper Creamy Coconut, the company’s most popular limited-time-offering carbonated soft drink (CSD) to date, as well as the introduction of Canada Dry Fruit Splash Cherry, which topped the charts as the most successful new CSD flavor innovation of 2024.
On February 26, one insider sold $2.74 billion worth of shares at a price of $32.65 per share. Currently, the stock is trading at $33.34 per share, having gained 3.80% since the beginning of the year. Over the last 12 months, the stock returned 13.79% to its investors.
In 2024, Keurig Dr Pepper had net sales of $15.35 billion, compared to $14.81 billion in 2023. Gross profit amounted to $8.53 billion, which compares to a gross profit of $8.08 billion in the prior year. Net income was $1.44 billion or $1.06 per share, compared to a net income of $2.18 billion or $1.56 per share.
“We strengthened our free cash flow generation, which funded dynamic capital allocation activities,” said the company’s CEO, Tim Cofer, during the company’s earnings call. “These included $1.1 billion of share buybacks, our fourth consecutive annual dividend increase, and over $1 billion of strategic investments that will enhance our ability to deliver consistent, profitable growth in the future. Our strategy and the five pillars underpinning it represent our North Star. In 2025, we will set a high bar for operational excellence, while further advancing each of these pillars as we become an ever stronger and more advantaged beverage company. To summarize our full-year 2024 financial performance, we delivered results consistent with our long-term algorithm, with constant currency net sales growing approximately 4% and EPS growing 8%.”
Thirteen analysts have an average “Buy” rating on Keurig Dr Pepper stock with a 12-month stock price target of $38.23 per share. The average price target suggests a 14.67% upside from the latest price.
Overall, KDP ranks first among the 10 stocks with at least $30 million in insider sales recently. While we acknowledge the potential of KDP, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KDP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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