Dr Pepper Snapple Group (DPS) Stock: Gaining Big | Here’s Why

Dr Pepper Snapple Group Inc. (NYSE: DPS)

Dr Pepper Snapple Group was off to a relatively normal start in the market today. However, minutes ago, the CNA Finance team picked up a spike. After a bit of looking around, we found the reason. Below, we’ll talk about what we’re seeing from the stock, why, and what’s next surrounding DPS.

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DPS Spikes

As mentioned above, Dr Pepper Snapple Group was off to a relatively normal start. While the stock was in the green, the gains weren’t very large at all. However, minutes ago, we noticed that the stock is spiking. Currently (1:39), DPS stock is trading at $89.35 per share after a gain of $1.03 per share (1.17%) thus far today.

Why The Stock Is Spiking

As soon as we noticed the gains, the CNA Finance team started looking for the cause, and we’ve found it. While there has been no fundamental news released by the company, there is quite a bit of chatter surrounding DPS on social media.

According to the chatter, Dr Pepper Snapple Group is looking into acquiring more assets. In fact, it is suggested that the company will likely acquire BAI Brands. Of course, if that does happen, the acquisition will lead to a stronger product line for DPS over time.

What To Expect Ahead

First and foremost, I’d like to say that, regardless of how this news turns out, we’re likely to see long-run gains in DPS. However, in the short run, we’re likely to see some volatility, and the movement will largely be dictated by this story. If news breaks that Dr Pepper Snapple Group has purchased BAI Brands, we can expect to see more gains in the short. However, if this acquisition doesn’t happen, look for a correction in DPS.

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[Image Courtesy of Flickr]

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