Zacks Investment Research Downgrades Dr Pepper Snapple Group Inc. (DPS) to Hold
Dr Pepper Snapple Group Inc. (NYSE:DPS) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Friday.
According to Zacks, “Dr Pepper reported strong third-quarter 2016 results, surpassing the Zacks Consensus Estimate for both earnings and sales for the five quarter in a row. In addition, the company raised its guidance for full-year 2016 and also expects to return over $1 billion to shareholders in the form of dividends and share repurchases. Sales rose 3.1%, ex Fx, on favorable product/package mix along with price hikes and improved volumes. Dr Pepper’s allied brands have been an important driver of volume growth and profits in recent quarters. However, NCBs were flat as impressive results in waters (+16%) and Clamato were offset by softness in Hawaiian Punch and Mott’s. Also, the company has less exposure in the fast growing emerging markets where demand is growing and health consciousness is comparatively less than the western countries.”
Several other equities research analysts have also recently weighed in on DPS. Susquehanna reiterated a “hold” rating and set a $98.00 price target on shares of Dr Pepper Snapple Group in a research report on Thursday, October 27th. Jefferies Group upped their price target on Dr Pepper Snapple Group from $101.00 to $104.00 and gave the company a “hold” rating in a research report on Thursday, July 28th. Deutsche Bank AG upped their price target on Dr Pepper Snapple Group from $95.00 to $97.00 and gave the company a “hold” rating in a research report on Thursday, July 28th. Bank of America Corp. reiterated a “sell” rating and set a $85.00 price target on shares of Dr Pepper Snapple Group in a research report on Wednesday, October 5th. Finally, Credit Suisse Group AG reiterated a “buy” rating on shares of Dr Pepper Snapple Group in a research report on Monday, October 10th. Two equities research analysts have rated the stock with a sell rating, nine have assigned a hold rating and five have issued a buy rating to the company. The stock has an average rating of “Hold” and an average target price of $97.54.
Shares of Dr Pepper Snapple Group (NYSE:DPS) opened at 82.44 on Friday. The firm has a market capitalization of $15.15 billion, a P/E ratio of 17.90 and a beta of 0.55. The company’s 50-day moving average is $87.65 and its 200 day moving average is $92.42. Dr Pepper Snapple Group has a 52-week low of $81.05 and a 52-week high of $98.80.
Dr Pepper Snapple Group (NYSE:DPS) last released its quarterly earnings data on Thursday, October 27th. The company reported $1.17 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.11 by $0.06. The business had revenue of $1.68 billion for the quarter, compared to the consensus estimate of $1.31 billion. Dr Pepper Snapple Group had a net margin of 13.53% and a return on equity of 38.19%. The company’s revenue was up 3.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.08 earnings per share. Analysts expect that Dr Pepper Snapple Group will post $4.42 EPS for the current fiscal year.
Several hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in Dr Pepper Snapple Group by 1.4% in the second quarter. Vanguard Group Inc. now owns 17,117,969 shares of the company’s stock worth $1,654,110,000 after buying an additional 241,737 shares during the period. JPMorgan Chase & Co. raised its stake in Dr Pepper Snapple Group by 6.7% in the third quarter. JPMorgan Chase & Co. now owns 7,262,198 shares of the company’s stock worth $663,113,000 after buying an additional 453,772 shares during the period. BlackRock Institutional Trust Company N.A. raised its stake in Dr Pepper Snapple Group by 1.7% in the third quarter. BlackRock Institutional Trust Company N.A. now owns 6,501,980 shares of the company’s stock worth $593,696,000 after buying an additional 105,905 shares during the period. BlackRock Fund Advisors raised its stake in Dr Pepper Snapple Group by 3.1% in the third quarter. BlackRock Fund Advisors now owns 3,677,074 shares of the company’s stock worth $335,754,000 after buying an additional 111,547 shares during the period. Finally, FMR LLC raised its stake in Dr Pepper Snapple Group by 10.5% in the second quarter. FMR LLC now owns 3,435,621 shares of the company’s stock worth $331,984,000 after buying an additional 326,417 shares during the period. 92.92% of the stock is owned by hedge funds and other institutional investors.
About Dr Pepper Snapple Group
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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