Companies and Brands
Keurig Green Mountain Added to the S&P 500
Published:
Last Updated:
Source: couresty of Keurig Green Mountain
Getting added to the S&P 500 is always good news for a stock because there is so much demand for index funds. Keurig shares rose 2.45% to $116.03 in after-hours trading on Friday. The shares are likely to add even a bit more during Monday’s regular session. The shares were up
Keurig’s been on something of roll in the last six weeks. First there was the deal with The Coca-Cola Co. (NYSE: KO). The beverage giant will acquire 10% of Keurig and enter an exclusive partnership with the smaller company for the production and sale of branded Coke products in Keurig’s planned single-serve cold beverage dispenser.
On Friday, Keurig announced that it had killed its exclusive deal with Starbucks Corp. (NASDAQ: SBUX) for super-premium coffee packed in K-Cups. Keurig struck a new deal with Peet’s Coffee, a division of privately held Joh. A Benckiser, a German firm that also owns coffee companies D.E. Master Blenders 1753 and Caribou Coffee. The deal will put Peet’s-branded K-Cups in more than 12,000 U.S. stores.
When Keurig reported earnings results in early February, the company forecast sales growth in 2014 in the high single digits with more growth coming in the second half of the year. The company reached an all-time intraday high on February 20 at $124.42, and the current consensus price target on the stock is around $125.10, implying a potential gain of just 0.6%. That price target should go up some now that the company’s stock is included in the S&P 500.
Keurig’s shares closed at $113.25 on Friday, up 6.7% on the day. They’ve risen nearly 50% this year and have a 52-week range of $52.58 to $124.42.
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
