Dr Pepper Snapple: 7 Different Insiders Have Sold Shares During The Last 30 Days

Mar. 5.14 | About: Dr Pepper (DPS)

Summary

Dr Pepper Snapple was sold by seven insiders within one month.

Dr Pepper Snapple was not purchased by any insiders in the month of intensive selling.

Six of these seven insiders decreased their holdings by more than 10%.

In this article, I will feature one consumer stock that has seen intensive insider selling during the last 30 days. Intensive insider selling can be defined by the following three criteria:

  1. The stock was sold by three or more insiders within one month.
  2. The stock was not purchased by any insiders in the month of intensive selling.
  3. At least two sellers decreased their holdings by more than 10%.

Dr Pepper Snapple Group (NYSE:DPS) operates as a brand owner, manufacturer, and distributor of non-alcoholic beverages in the United States, Canada, Mexico, and the Caribbean.

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Insider selling during the last 30 days

Here is a table of Dr Pepper Snapple's insider activity during the last 30 days.

Name Title Trade Date Shares Sold Rule 10b5-1 Current Ownership Decrease In Ownership
Derry Hobson EVP Feb 27 3,860 No 7,759 shares + 54,378 options 5.8%
Larry Young CEO Feb 26-27 147,950 No 250,000 shares + 189,977 options 25.2%
Martin Ellen CFO Feb 13-27 28,929 No 55,000 shares + 75,644 options 18.1%
David Thomas EVP Feb 24 5,656 No 31,531 shares + 11,308 options 11.7%
Angela Stephens SVP Feb 18 4,000 No 4,795 shares 45.5%
James Johnston EVP Feb 19 54,022 No 84,464 shares 39.0%
Rodger Collins EVP Feb 18 42,022 No 66,810 shares 38.6%
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There have been 286,439 shares sold by insiders during the last 30 days.

Insider selling by calendar month

Here is a table of Dr Pepper Snapple's insider activity by calendar month.

Month Insider selling / shares Insider buying / shares
February 2014 286,439 0
January 2014 0 0
December 2013 0 0
November 2013 10,488 0
October 2013 12,138 0
September 2013 0 0
August 2013 86,143 0
July 2013 0 0
June 2013 0 0
May 2013 217,096 0
April 2013 45,115 1,000
March 2013 54,420 0
February 2013 0 0
January 2013 0 0
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There have been 711,839 shares sold, and there have been 1,000 shares purchased by insiders since January 2013. The month of February 2014 has seen the most insider selling.

Financials

Dr Pepper Snapple reported the full-year 2013 financial results on February 12 with the following highlights:

Revenue

$6.0 billion

Net income

$624 million

Cash

$153 million

Debt

$2.6 billion

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(Source: Earnings presentation)

Outlook

Dr Pepper Snapple's 2014 guidance is as follows:

Net sales growth 0%-1%
Core EPS $3.38-$3.46
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(Source: Earnings presentation)

Competition

Dr Pepper Snapple's competitors include Coca-Cola (NYSE:KO), Monster Beverage (NASDAQ:MNST), and Pepsico (NYSE:PEP). Here is a table comparing these companies.

Company DPS KO MNST PEP
Market Cap: 10.25B 168.64B 12.42B 122.23B
Employees: 19,000 130,600 N/A 274,000
Qtrly Rev Growth (yoy): -0.01 -0.04 0.15 0.01
Revenue: 6.00B 46.85B 2.25B 66.42B
Gross Margin: 0.58 0.61 0.52 0.53
EBITDA: 1.32B 13.10B 594.84M 12.34B
Operating Margin: 0.18 0.24 0.26 0.15
Net Income: 624.00M 8.58B 338.66M 6.73B
EPS: 3.05 1.90 1.95 4.32
P/E: 17.03 20.16 38.19 18.58
PEG (5 yr expected): 2.21 2.82 2.02 2.36
P/S: 1.70 3.58 5.39 1.82
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Dr Pepper Snapple has the second-weakest revenue growth among these four companies.

Here is a table of these competitors' insider activities this year.

Company Insider buying / shares Insider selling / shares
KO 22,481 0
MNST 0 400,000
PEP 0 7,709
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Only Dr Pepper Snapple has seen intensive insider selling during the last 30 days.

Conclusion

There have been seven different insiders selling Dr Pepper Snapple, and there have not been any insiders buying Dr Pepper Snapple during the last 30 days. Six of these seven insiders decreased their holdings by more than 10%. Dr Pepper Snapple has an insider ownership of 0.10%.

Before going short Dr Pepper Snapple, I would like to get a bearish confirmation from the Point and Figure chart. The two main reasons for the proposed short entry are weak revenue growth, and the intensive insider-selling activity.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in KO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.