Why Keurig Dr Pepper (KDP) Shares Are Falling

Keurig Dr Pepper Inc KDP shares are trading lower by 2.27% to $32.98 during Thursday’s session. The company announced a secondary public offering of 73 million shares.

What To Know: Keurig Dr Pepper (KDP) has priced a secondary public offering of 73 million shares at $32.80 each, through a subsidiary of JAB Holding Company. JAB also granted the underwriter, J.P. Morgan, a 30-day option to purchase an additional 10.95 million shares.

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Upon completion, JAB will hold approximately 10.7% of KDP's outstanding stock, with remaining shares under a 90-day lock-up agreement. J.P. Morgan is serving as the offering's underwriter.

What Else: The secondary offering of 73 million shares could dilute the value of Keurig Dr Pepper’s stock, leading to a decrease in EPS. Additionally, the large sale by a major shareholder, JAB, may signal to investors that the company's stock is overvalued, which could prompt selling pressure.

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According to data from Benzinga Pro, KDP has a 52-week high of $38.28 and a 52-week low of $28.62.