Keurig Dr Pepper (NASDAQ:KDP) Given New $40.00 Price Target at Morgan Stanley

Keurig Dr Pepper (NASDAQ:KDP) had its price objective hoisted by Morgan Stanley from $38.00 to $40.00 in a report published on Wednesday,Benzinga reports. They currently have an overweight rating on the stock.

Several other analysts have also recently commented on the company. Sanford C. Bernstein set a $39.00 target price on Keurig Dr Pepper in a research report on Wednesday, July 8th. Piper Sandler reissued an “overweight” rating on shares of Keurig Dr Pepper in a research report on Wednesday, October 14th. Argus reissued a “buy” rating and issued a $36.00 price objective on shares of Keurig Dr Pepper in a research note on Tuesday, September 15th. Evercore raised their price objective on Keurig Dr Pepper from $30.00 to $32.00 in a research report on Thursday, October 8th. Finally, UBS Group lifted their target price on Keurig Dr Pepper from $38.00 to $39.00 and gave the company a “buy” rating in a research note on Friday, August 7th. Ten analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, Keurig Dr Pepper presently has a consensus rating of “Moderate Buy” and a consensus target price of $37.12.

Keurig Dr Pepper Stock Up 5.9%

Shares of NASDAQ:KDP opened at $36.79 on Wednesday. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.28 and a current ratio of 0.52. The company has a market cap of $50.06 billion, a PE ratio of 33.75, a price-to-earnings-growth ratio of 1.65 and a beta of 0.35. Keurig Dr Pepper has a 52 week low of $24.88 and a 52 week high of $37.31. The firm has a 50 day simple moving average of $32.68 and a 200 day simple moving average of $30.11.

Keurig Dr Pepper (NASDAQ:KDP) last posted its quarterly earnings data on Tuesday, November 3rd. The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.62 by $0.04. Keurig Dr Pepper had a net margin of 7.12% and a return on equity of 11.27%. The firm had revenue of $7.34 billion for the quarter, compared to analysts’ expectations of $7.33 billion. During the same period in the previous year, the company posted $0.54 EPS. The company’s quarterly revenue was up 70.6% compared to the same quarter last year. As a group, research analysts expect that Keurig Dr Pepper will post 2.30 earnings per share for the current year.

Keurig Dr Pepper Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, October 9th. Investors of record on Monday, September 28th were given a dividend of $0.23 per share. The ex-dividend date of this dividend was Monday, September 28th. This represents a $0.92 dividend on an annualized basis and a yield of 2.5%. Keurig Dr Pepper’s dividend payout ratio (DPR) is presently 92.93%.

Insider Buying and Selling at Keurig Dr Pepper

In other news, Director Aaron Alt bought 7,862 shares of the company’s stock in a transaction on Tuesday, August 25th. The shares were bought at an average cost of $31.83 per share, with a total value of $250,247.46. Following the transaction, the director directly owned 7,862 shares in the company, valued at approximately $250,247.46. This trade represents a ∞ increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP Angela Stephens sold 9,500 shares of the company’s stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $32.70, for a total value of $310,650.00. Following the completion of the transaction, the vice president directly owned 55,786 shares in the company, valued at approximately $1,824,202.20. The trade was a 14.55% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On Keurig Dr Pepper

A number of hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. acquired a new position in shares of Keurig Dr Pepper in the second quarter valued at $4,697,645,000. Barrow Hanley Mewhinney & Strauss LLC bought a new position in Keurig Dr Pepper in the second quarter worth $767,105,000. Bank of America Corp DE acquired a new stake in Keurig Dr Pepper during the second quarter worth $281,503,000. Legal & General Group Plc acquired a new stake in Keurig Dr Pepper during the second quarter worth $269,336,000. Finally, Bank of New York Mellon Corp bought a new stake in Keurig Dr Pepper in the 2nd quarter valued at $231,345,000. Institutional investors and hedge funds own 93.99% of the company’s stock.

Key Stories Impacting Keurig Dr Pepper

Here are the key news stories impacting Keurig Dr Pepper this week:

• Positive Sentiment: KDP reported third-quarter adjusted earnings of $0.66 per share, above analyst expectations, while revenue of $7.34 billion was roughly in line with or slightly ahead of estimates. Earnings rose from $0.54 per share a year earlier, and the company reaffirmed its 2026 outlook. Keurig Dr Pepper Q3 results and guidance
• Positive Sentiment: Analysts raised targets: UBS to $42 with a Buy rating, JPMorgan to $41 with an Overweight rating, and Morgan Stanley to $40 with an Overweight rating. Piper Sandler also lifted its target to $41. These revisions suggest several firms see further upside. UBS recommendations
• Positive Sentiment: Beverage growth and acquired JDE Peet’s contributed to strong reported sales growth; coverage also noted KDP’s energy-drink share surpassed 10%. This supports the company’s growth story beyond its legacy coffee business. Long-term investor takeaways
• Neutral Sentiment: KDP expects 2026 net sales of $25.9 billion to $26.4 billion and is planning to separate its businesses in early 2027. The separation could reshape the company, though its eventual impact is uncertain. Sales outlook and planned separation
• Negative Sentiment: Management flagged a challenging U.S. coffee environment, with consumers trading down expected to weigh on fourth-quarter coffee profitability. TD Cowen raised its target to $35 but maintained a Hold rating, implying a more cautious outlook. Coffee profit outlook

About Keurig Dr Pepper

Keurig Dr Pepper Inc (NASDAQ: KDP) is a beverage company that operates across coffee and packaged beverages. Its portfolio includes soft drinks, flavored waters, juices, juice drinks, ready-to-drink teas and coffees, sports and energy beverages, and mixers, as well as single-serve coffee brewing systems and pods.

The company’s brands include Keurig, Green Mountain Coffee Roasters, The Original Donut Shop, Dr Pepper, Canada Dry, Snapple, 7UP, A&W, Mott’s, Bai, CORE Hydration and Venom, among others.