Dr Pepper Snapple Group Inc. (DPS) Raised to Buy at Zacks Investment Research
Dr Pepper Snapple Group Inc. (NYSE:DPS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Tuesday. The firm currently has a $102.00 price target on the stock. Zacks Investment Research’s price target points to a potential upside of 12.37% from the stock’s previous close.
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.”
DPS has been the subject of a number of other reports. Susquehanna reissued a “hold” rating and set a $99.00 target price on shares of Dr Pepper Snapple Group in a research note on Tuesday, July 26th. BMO Capital Markets reissued a “market perform” rating on shares of Dr Pepper Snapple Group in a research note on Friday, July 15th. Jefferies Group boosted their target price on shares of Dr Pepper Snapple Group from $101.00 to $104.00 and gave the company a “hold” rating in a research note on Thursday, July 28th. Deutsche Bank AG boosted their target price on shares of Dr Pepper Snapple Group from $95.00 to $97.00 and gave the company a “hold” rating in a research note on Thursday, July 28th. Finally, Goldman Sachs Group Inc. lowered their target price on shares of Dr Pepper Snapple Group from $90.00 to $89.00 and set a “sell” rating for the company in a research note on Wednesday, June 29th. Two investment analysts have rated the stock with a sell rating, nine have given a hold rating and seven have given a buy rating to the company. The company presently has an average rating of “Hold” and an average price target of $96.86.
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Shares of Dr Pepper Snapple Group (NYSE:DPS) traded up 0.083% during mid-day trading on Tuesday, reaching $90.845. 583,912 shares of the company traded hands. Dr Pepper Snapple Group has a 52 week low of $76.56 and a 52 week high of $98.80. The stock has a market capitalization of $16.84 billion, a PE ratio of 20.803 and a beta of 0.32. The firm has a 50 day moving average of $94.21 and a 200-day moving average of $93.00.
Dr Pepper Snapple Group (NYSE:DPS) last posted its quarterly earnings data on Wednesday, July 27th. The company reported $1.25 EPS for the quarter, topping the consensus estimate of $1.20 by $0.05. The company earned $1.70 billion during the quarter, compared to analyst estimates of $1.68 billion. Dr Pepper Snapple Group had a net margin of 13.04% and a return on equity of 37.43%. Dr Pepper Snapple Group’s quarterly revenue was up 2.4% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.13 earnings per share. On average, equities research analysts expect that Dr Pepper Snapple Group will post $4.37 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 5th. Stockholders of record on Tuesday, September 13th will be paid a dividend of $0.53 per share. The ex-dividend date is Friday, September 9th. This represents a $2.12 dividend on an annualized basis and a dividend yield of 2.34%. Dr Pepper Snapple Group’s payout ratio is 48.51%.
In other news, insider David Thomas sold 2,000 shares of the business’s stock in a transaction dated Friday, August 12th. The stock was sold at an average price of $97.20, for a total transaction of $194,400.00. Following the sale, the insider now owns 40,000 shares in the company, valued at $3,888,000. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Martin M. Ellen sold 15,462 shares of the business’s stock in a transaction dated Thursday, July 28th. The stock was sold at an average price of $96.63, for a total value of $1,494,093.06. Following the sale, the insider now owns 5,462 shares in the company, valued at approximately $527,793.06. The disclosure for this sale can be found here. Insiders own 0.62% of the company’s stock.
Several large investors have recently modified their holdings of DPS. Nomura Asset Management Co. Ltd. raised its stake in shares of Dr Pepper Snapple Group by 5.6% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 35,784 shares of the company’s stock worth $3,335,000 after buying an additional 1,900 shares in the last quarter. Norges Bank purchased a new stake in shares of Dr Pepper Snapple Group during the fourth quarter worth approximately $136,394,000. Chevy Chase Trust Holdings Inc. raised its stake in shares of Dr Pepper Snapple Group by 1.8% in the first quarter. Chevy Chase Trust Holdings Inc. now owns 159,660 shares of the company’s stock worth $14,276,000 after buying an additional 2,799 shares in the last quarter. DnB Asset Management AS raised its stake in shares of Dr Pepper Snapple Group by 22.6% in the first quarter. DnB Asset Management AS now owns 18,447 shares of the company’s stock worth $1,650,000 after buying an additional 3,400 shares in the last quarter. Finally, Glenmede Trust Co. NA raised its stake in shares of Dr Pepper Snapple Group by 6.0% in the first quarter. Glenmede Trust Co. NA now owns 1,050,859 shares of the company’s stock worth $93,965,000 after buying an additional 59,638 shares in the last quarter. Institutional investors and hedge funds own 92.07% of the company’s stock.
Dr Pepper Snapple Group Company Profile
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.
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