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Benzinga
Benzinga
Dylan Berman

Dr Pepper Stock Is Trading Lower Monday: What's Going On?

Los,Angeles,,California,,United,States,-,04-05-2019:,A,View,Of

Keurig Dr Pepper Inc. (NASDAQ:KDP) shares are trading lower Monday after the company announced the acquisition of JDE Peet’s.

What To Know: Keurig Dr Pepper said it will acquire JDE Peet's in an all-cash transaction valued at €15.7 billion, or €31.85 per share, representing a 33% premium to JDE Peet's 90-day average stock price. The deal is expected to close in the first half of 2026.

After the acquisition, the company plans to separate into two U.S.-listed public companies: Beverage Co., a North American refreshment business with more than $11 billion in annual sales, and Global Coffee Co., a pure-play coffee company with about $16 billion in sales across more than 100 countries. Keurig Dr Pepper said the move will unlock about $400 million in cost synergies within three years and generate earnings accretion beginning in year one.

"Today's announcement marks a transformational moment in the beverage industry, as we build on KDP's disruptive legacy by creating two winning companies, including a new global coffee champion," said Tim Cofer, CEO of Keurig Dr Pepper.

JDE Peet's CEO Rafa Oliveira said the combination would "create compelling future growth opportunities for our employees, customers and other stakeholders" while delivering an attractive premium for shareholders.

How To Buy Dr Pepper Stock

By now you're likely curious about how to participate in the market for Dr Pepper – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of Dr Pepper, which is trading at $32.26 as of publishing time, $100 would buy you 3.1 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

Related Link: What’s Going On With Palantir Stock?

KDP Price Action: At the time of writing, Dr Pepper stock is trading 9.68% lower at $31.74, according to data from Benzinga Pro.

Image via Shutterstock

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