why did keurig stock drop in july 2018

What happened to Keurig in July 2018?

In July 2018, Keurig Green Mountain acquired Dr Pepper Snapple Group in a deal worth $18.7 billion. Legally, Dr Pepper Snapple Group was the surviving company; it remained publicly traded and changed its name to Keurig Dr Pepper. This created the third largest beverage company in North America.

Why did Keurig stock drop in 2018?

This was not because of a change in company's fundamentals but due to the sharp rise in the EPS following the acquisition. The stock price increased but not as much as the EPS between December 2018 and December 2020 as the effect of the acquisition was already accounted for in the price, leading to a drop in P/E.

Did KDP split in 2018?

Back in 2018, Keurig Green Mountain and Dr Pepper Snapple Group merged to form the current KDP. Given the short history of the merger, we will have a closer look at the fundamentals of the company since the merger.

Is Keurig stock a good buy?

However, Keurig Dr Pepper stock holds a strong 83 Composite Rating, putting it in the top 17% of all stocks. The Composite Rating combines five separate proprietary IBD ratings, based on key fundamental and technical criteria, into one easy-to-use score. The best growth stocks have a Composite Rating of 90 or better.

Why did Keurig and Dr Pepper merger?

Commenting on the announcement, Keurig Dr Pepper CEO Bob Gamgort stated, “The combination of these two great companies creates the scale, portfolio and selling and distribution capabilities to compete differently in the beverage industry.

Did Dr Pepper get bought out?

Pepper distribution for $715 million. In a much-anticipated acquisition deal, Coke is paying Dr Pepper Snapple Group Inc $715 million for the right to sell Dr. Pepper and other soft drinks once Coke acquires its biggest North American bottler.

Does KDP pay a dividend?

KDP pays a dividend of $0.75 per share. KDP's annual dividend yield is 2.17%.

When did KDP split?

On July 10, 2018, the shares will begin trading ex-dividend. KDP will maintain dual headquarters in Burlington, MA, and Plano, TX. Keurig Dr Pepper (KDP) is a leading coffee and beverage company in North America, with annual revenue in excess of $11 billion.

What was in Dr Pepper?

Carbonated Water, Sugar, Colour (Caramel E150d), Phosphoric Acid, Preservative (Potassium Sorbate), Flavourings Including Caffeine, Sweeteners (Aspartame, Acesulfame K).

Is KDP a buy or sell?

Today KDP ranks #12180 as sell candidate.

Is KDP undervalued?

Despite rising 80% from its March 2020 lows, at the current price of $36 per share, Keurig Dr Pepper stock (NYSE: KDP) still looks slightly undervalued. KDP stock has increased from less than $20 to almost $36 off its 2020 bottom, slightly less than the S&P which increased by 90% from its 2020 lows.

Is KDP a good long term investment?

Projections estimate a revenue increase of 8.0% for 2021, coming off a 0.4% increase in 2020 and 6.9% increase in 2019. The industry's five-year compounded annual growth rate (CAGR) is 6.0%, which compares to 14.7% growth for the S&P 1500 Index.

Does Vitacoco stay with Keurig?

VitaCoco plans to stay with Keurig Dr Pepper, its CEO told CNBC through a spokeswoman. BodyArmor and Core did not respond to requests for comment. The decision to leave behind Keurig Dr Pepper’s distribution network would not be made lightly. Creating a distribution network from scratch is challenging and expensive.

Does Keurig own Dr Pepper?

The deal has cast uncertainty on Keurig Dr Pepper’s so-called “Allied Brands,” trendy drinks it distributes but does not own. Fiji announced this week it will leave Keurig Dr Pepper’s distribution network. Another Allied Brand, Big Red, this week signed an agreement to sell to KDP. It’s barely a week into the closing of the mega-merger ...

Is Keurig Dr Pepper losing Fiji?

Loss of Fiji. The loss of Fiji, while minuscule to Keurig Dr Pepper’s bottom line, is a bruise nonetheless. Fiji is one of the best sellers in the Allied Brands collection, sources familiar with the situation tell CNBC, requesting anonymity because the information is confidential.

Did Keurig lose its Allied brand?

Adding to the portfolio. As Keurig Dr Pepper has lost an Allied Brand, its has also added some. Keurig Dr Pepper’s acquisition of Big Red comes after Dr Pepper Snapple had a minority stake in the soda brand for a decade and a distribution partnership with it for more than 30 years.

Who is the CEO of Keurig Dr Pepper?

Regarding the merger, Keurig Dr Pepper CEO Bob Gamgort commented, “ The combination of these two great companies creates the scale, portfolio and selling and distribution capabilities to compete differently in the beverage industry.

Does Dr Pepper carry Keurig?

Already many convenience store retailers that have current contracts with Dr. Pepper have determined that they will not carry Keurig products. Further, analysts have pointed out that there are limited opportunities for the new company to sell legacy Dr. Pepper products in the current distribution channels utilized by Keurig.

How much has Keurig Dr Pepper gained in 2019?

. However, it has been a harder slog for the shares in 2019, and Keurig Dr Pepper has gained only 5% year to date.

Is Dr Pepper stock downgraded?

Keurig Dr Pepper stock (ticker: KDP) is falling on Thursday, following a downgrade from Morgan Stanley, which argues that investors should be wary of slowing growth for its single-serve beverages.