Pepsico, Inc. (PEP) Downgraded by Jefferies Group LLC to Hold
Jefferies Group LLC cut shares of Pepsico, Inc. (NYSE:PEP) from a buy rating to a hold rating in a report published on Monday morning, Marketbeat.com reports. Jefferies Group LLC currently has $108.00 target price on the stock, down from their prior target price of $133.00. Jefferies Group also issued estimates for Pepsico’s Q3 2017 earnings at $1.43 EPS, Q4 2017 earnings at $1.29 EPS, FY2017 earnings at $5.15 EPS, FY2018 earnings at $5.52 EPS and FY2019 earnings at $5.90 EPS.
“greater innovation,” Grundy commented in his downgrade note. In fact, PepsiCo is losing market share in approximately 85 percent of its beverage portfolio which also compromises a “key tenet” in holding a bullish stance.Meanwhile, PepsiCo’s once-strong food division also faces pressure from grocery store weakness trends, Amazon.com, Inc. (NASDAQ: AMZN)’s growing presence in the food sector, along with “less M&A froth” to support the valuation.On top of that, a bullish stance on PepsiCo’s stock was derived from management’s productivity savings initiative through 2019 that would drive upside to Wall Street’s estimates, the analyst added. But input cost inflation has returned which implies there is “less scope” for operating margin upside — especially at a time when the company needs to reinvest money in the North American market where it has a higher degree of exposure versus its peers.Bottom line, while PepsiCo boasts a great portfolio of brands the fact is the industry has slowed down as of late and will remain extremely competitive moving forward. As such, a “less constructive,” Jefferies Group LLC’s analyst wrote.
Other equities analysts have also issued reports about the stock. Zacks Investment Research upgraded shares of Pepsico from a hold rating to a buy rating and set a $129.00 price target for the company in a research report on Friday, July 14th. BidaskClub upgraded shares of Pepsico from a hold rating to a buy rating in a research report on Thursday, August 17th. Cowen and Company restated a buy rating on shares of Pepsico in a research report on Sunday, September 17th. Finally, Royal Bank Of Canada restated a hold rating and set a $115.00 target price on shares of Pepsico in a research report on Friday, June 30th. Seven investment analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has issued a strong buy rating to the company. Pepsico presently has a consensus rating of Buy and an average target price of $121.69.
Pepsico (NYSE PEP) opened at 110.45 on Monday. The firm has a 50-day moving average of $114.33 and a 200 day moving average of $114.73. Pepsico has a one year low of $98.50 and a one year high of $119.39. The company has a market capitalization of $157.17 billion, a P/E ratio of 22.83 and a beta of 0.68.
Pepsico (NYSE:PEP) last posted its quarterly earnings results on Wednesday, October 4th. The company reported $1.48 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.43 by $0.05. The business had revenue of $16.24 billion during the quarter, compared to analyst estimates of $16.35 billion. Pepsico had a net margin of 10.97% and a return on equity of 60.16%. The company’s revenue was up 1.3% on a year-over-year basis. During the same period in the prior year, the business posted $1.40 earnings per share. On average, equities analysts forecast that Pepsico will post $5.19 EPS for the current fiscal year.
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The firm also recently declared a quarterly dividend, which was paid on Friday, September 29th. Investors of record on Friday, September 1st were paid a dividend of $0.805 per share. This represents a $3.22 dividend on an annualized basis and a yield of 2.92%. The ex-dividend date of this dividend was Wednesday, August 30th. Pepsico’s payout ratio is 66.53%.
In related news, SVP Marie T. Gallagher sold 41,489 shares of the company’s stock in a transaction on Monday, August 7th. The shares were sold at an average price of $116.77, for a total transaction of $4,844,670.53. Following the sale, the senior vice president now owns 76,037 shares of the company’s stock, valued at $8,878,840.49. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, EVP Mehmood Khan sold 63,396 shares of the company’s stock in a transaction on Monday, July 24th. The shares were sold at an average price of $116.39, for a total transaction of $7,378,660.44. Following the sale, the executive vice president now directly owns 174,273 shares in the company, valued at approximately $20,283,634.47. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 898,164 shares of company stock worth $104,585,929. 0.26% of the stock is owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in PEP. Barnett & Company Inc. raised its stake in Pepsico by 270.4% during the second quarter. Barnett & Company Inc. now owns 900 shares of the company’s stock valued at $104,000 after purchasing an additional 657 shares in the last quarter. Aviance Capital Management LLC purchased a new stake in shares of Pepsico in the second quarter valued at $111,000. Asset Planning Services Ltd. raised its stake in shares of Pepsico by 66.1% in the first quarter. Asset Planning Services Ltd. now owns 1,003 shares of the company’s stock valued at $112,000 after acquiring an additional 399 shares during the period. Patriot Financial Group Insurance Agency LLC raised its stake in shares of Pepsico by 5.9% in the second quarter. Patriot Financial Group Insurance Agency LLC now owns 1,211 shares of the company’s stock valued at $138,000 after acquiring an additional 67 shares during the period. Finally, Riggs Asset Managment Co. Inc. raised its stake in shares of Pepsico by 14.9% in the first quarter. Riggs Asset Managment Co. Inc. now owns 1,270 shares of the company’s stock valued at $142,000 after acquiring an additional 165 shares during the period. 70.06% of the stock is currently owned by institutional investors.
Pepsico Company Profile
PepsiCo, Inc is a global food and beverage company. The Company’s portfolio of brands includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. The Company operates through six segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA), and Asia, Middle East and North Africa (AMENA).
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