Keurig Green Mountain Inc (NASDAQ:GMCR) shares are up over 75% in pre-market trading after the company has announced a merger agreement with JAB Holding Company. According to the deal, JAB will acquire the Waterbury, Vermont headquartered company which has become famous for their Keurig coffee machines and “coffee-cups”, for an astounding $13.9 billion, or $92.00 per share.
Keurig Green Mountain Inc (NASDAQ:GMCR) stock has soared from its Friday closing price of $51.70 up to over $90.00 so far in pre-market trading. The agreement for this deal has been unanimously approved by the board of directors at Keurig, and results in a premium of 77.9% over the stock’s closing price on Friday.
“This transaction will deliver significant cash value for our shareholders and offers an exciting new chapter for our customers, partners and employees by combining Keurig Green Mountain with JAB’s global coffee platform,” explained Brian Kelley, CEO of Keurig Green Mountain Inc (NASDAQ:GMCR). “JAB fully supports Keurig Green Mountain’s culture and values as we continue to pursue our commitment to deliver innovative beverage solutions for consumers at the touch of a button.”
The stock closed at $51.7 during the last trading session. It is down 53.68% since May 4, 2015 and is downtrending. It has underperformed the S&P500 by 50.90%.
From a total of 16 analysts covering Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) stock, 1 rate it a “Buy”, 2 a “Sell”, and 13 a “Hold”. This means that 6% of the ratings are positive. The highest target price is $67 while the lowest target price is $50. The mean of all analyst targets is $55.52 which is 7.39% above today’s ($51.7) stock price. Green Mountain Coffee Roasters Inc. was the topic of 29 analyst reports since August 6, 2015 according to the firm StockzIntelligence Inc. UBS maintained shares on November 19 with a “Neutral” rating. Suntrust Robinson maintained shares with a”Neutral” rating and a $50 target share price in their report from a November 11. Canaccord Genuity maintained GMCR stock in a recent report from November 19 with a “Hold” rating. CLSA maintained the rating on September 25. CLSA has a “Underperform” rating and a $66 price target on shares. Finally, Wedbush maintained the stock with a “Neutral” rating in a report they issued on a November 17.
The institutional sentiment decreased to 0.79 in Q2 2015. It’s down 0.01, from 0.8 in 2015Q1. The ratio fall, as 72 funds sold all their Keurig Green Mountain Inc shares they owned while 149 reduced their positions. 52 funds bought stakes while 123 increased their total positions. Institutions now own 100.97 million shares which is 3.88% more than the previous share count of 97.20 million in 2015Q1.
Smith Thomas W holds 8.03% of its total portfolio in Keurig Green Mountain Inc, equating to 154,842 shares. Goodnow Investment Group Llc owns 543,313 shares representing 6.69% of their total US portfolio. Moreover, Hunter Associates Inc. has 6.09% of their total portfolio invested in the company, equating to 190,890 shares. The Florida-based Prescott General Partners Llc has a total of 4.66% of their portfolio invested in the stock. Teewinot Capital Advisers L.L.C., a New York-based fund reported 65,004 shares owned.
Keurig Green Mountain, Inc. is a personal beverage system company. The company has a market cap of $7.70 billion. The Firm is engaged in producing specialty coffee, coffeemakers, teas and other beverages in the United States and Canada. It has 16.53 P/E ratio. It operates through two divisions: Domestic and Canada.