Over the last year, a good number of insiders have significantly increased their holdings in Keurig Dr Pepper Inc. (NASDAQ:KDP). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Keurig Dr Pepper Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chief Operating Officer Timothy Cofer bought US$3.1m worth of shares at a price of US$31.26 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$30.97). 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months insiders purchased 359.19k shares for US$12m. On the other hand they divested 70.10k shares, for US$2.3m. In the last twelve months there was more buying than selling by Keurig Dr Pepper insiders. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Keurig Dr Pepper Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Keurig Dr Pepper. We can see that Chief Corporate Affairs Officer Monique Oxender paid US$196k for shares in the company. No-one sold. This makes one think the business has some good points.

Does Keurig Dr Pepper Boast High 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. It's great to see that Keurig Dr Pepper insiders own 1.1% of the company, worth about US$493m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Keurig Dr Pepper Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Keurig Dr Pepper. One for the watchlist, at least! 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. To that end, you should learn about the 2 warning signs we've spotted with Keurig Dr Pepper (including 1 which shouldn't be ignored).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.