Dr Pepper Snapple Group, Inc (DPS) Shares Gap Down After Earnings Miss

Shares of Dr Pepper Snapple Group, Inc (NYSE:DPS) gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $95.41, but opened at $89.71. Dr Pepper Snapple Group shares last traded at $85.52, with a volume of 4,420,363 shares.

The company reported $1.10 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $1.16 by ($0.06). Dr Pepper Snapple Group had a net margin of 11.73% and a return on equity of 38.28%. The company had revenue of $1.74 billion during the quarter, compared to analyst estimates of $1.77 billion. During the same period in the previous year, the firm posted $1.17 earnings per share. The company’s revenue was up 3.6% compared to the same quarter last year.

The business also recently declared a quarterly dividend, which was paid on Thursday, October 5th. Shareholders of record on Thursday, September 14th were issued a $0.58 dividend. This represents a $2.32 dividend on an annualized basis and a yield of 2.68%. The ex-dividend date was Wednesday, September 13th. Dr Pepper Snapple Group’s payout ratio is presently 55.64%.

A number of research analysts have issued reports on DPS shares. Cowen and Company reissued a “hold” rating and issued a $96.00 price target on shares of Dr Pepper Snapple Group in a report on Friday, July 14th. BidaskClub downgraded Dr Pepper Snapple Group from a “hold” rating to a “sell” rating in a report on Saturday, August 5th. Jefferies Group LLC reissued a “buy” rating and issued a $112.00 price target on shares of Dr Pepper Snapple Group in a report on Tuesday, August 1st. Stifel Nicolaus decreased their price target on Dr Pepper Snapple Group from $114.00 to $106.00 and set a “buy” rating for the company in a report on Thursday. Finally, UBS Group AG boosted their price target on Dr Pepper Snapple Group from $98.00 to $99.00 and gave the company a “neutral” rating in a report on Friday, July 28th. One research analyst has rated the stock with a sell rating, eight have issued a hold rating and six have issued a buy rating to the stock. The stock currently has an average rating of “Hold” and a consensus price target of $99.45.

In related news, insider Angela A. Stephens sold 7,700 shares of the business’s stock in a transaction that occurred on Friday, September 1st. The stock was sold at an average price of $91.12, for a total transaction of $701,624.00. Following the completion of the sale, the insider now directly owns 6,053 shares in the company, valued at $551,549.36. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Angela A. Stephens sold 3,160 shares of the business’s stock in a transaction that occurred on Wednesday, August 16th. The stock was sold at an average price of $92.51, for a total value of $292,331.60. Following the sale, the insider now owns 16,913 shares of the company’s stock, valued at $1,564,621.63. The disclosure for this sale can be found here. 0.58% of the stock is currently owned by insiders.

Several institutional investors and hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. increased its position in shares of Dr Pepper Snapple Group by 2.9% during the second quarter. Vanguard Group Inc. now owns 18,408,234 shares of the company’s stock worth $1,677,174,000 after purchasing an additional 510,155 shares in the last quarter. BlackRock Inc. increased its position in shares of Dr Pepper Snapple Group by 4.9% during the second quarter. BlackRock Inc. now owns 17,172,007 shares of the company’s stock worth $1,564,543,000 after purchasing an additional 802,560 shares in the last quarter. JPMorgan Chase & Co. increased its position in shares of Dr Pepper Snapple Group by 0.9% during the second quarter. JPMorgan Chase & Co. now owns 8,399,141 shares of the company’s stock worth $765,245,000 after purchasing an additional 75,164 shares in the last quarter. FMR LLC increased its position in shares of Dr Pepper Snapple Group by 4.7% during the second quarter. FMR LLC now owns 2,984,283 shares of the company’s stock worth $271,898,000 after purchasing an additional 134,256 shares in the last quarter. Finally, Wells Fargo & Company MN increased its position in shares of Dr Pepper Snapple Group by 0.7% during the second quarter. Wells Fargo & Company MN now owns 2,259,175 shares of the company’s stock worth $205,835,000 after purchasing an additional 15,523 shares in the last quarter. Hedge funds and other institutional investors own 90.24% of the company’s stock.

The company has a 50 day moving average of $89.56 and a 200 day moving average of $91.51. The stock has a market capitalization of $15.71 billion, a PE ratio of 20.73 and a beta of 0.61.

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Dr Pepper Snapple Group Company Profile

Dr Pepper Snapple Group, Inc is an integrated brand owner, manufacturer and distributor of non-alcoholic beverages in the United States, Mexico and Canada. The Company offers a diverse portfolio 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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