Yahoo Finance Insider Stock Buying Reaches US$24.7m On Keurig Dr Pepper
Multiple insiders secured a larger position in Keurig Dr Pepper Inc. (NASDAQ:KDP) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Keurig Dr Pepper
Keurig Dr Pepper Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Director G. Harf for US$5.0m worth of shares, at about US$29.10 per share. That implies that an insider found the current price of US$30.44 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Keurig Dr Pepper share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 826.17k shares for US$25m. But they sold 75.39k shares for US$2.4m. In total, Keurig Dr Pepper insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Keurig Dr Pepper is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Keurig Dr Pepper Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Keurig Dr Pepper, over the last three months. Insiders spent US$18m on shares. On the other hand, Independent Director Robert Singer netted US$234k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Keurig Dr Pepper insiders own 1.2% of the company, currently worth about US$515m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Keurig Dr Pepper Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Keurig Dr Pepper. Nice! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 2 warning signs for Keurig Dr Pepper you should be aware of, and 1 of these is concerning.
Of course Keurig Dr Pepper may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
