Pepsico (PEP) Raised to “Hold” at Zacks Investment Research
Zacks Investment Research upgraded shares of Pepsico (NYSE:PEP) from a sell rating to a hold rating in a research note released on Tuesday morning.
According to Zacks, “PepsiCo has been doing well on the back of significant innovation, continued momentum in Frito-Lay business, revenue management strategies, improved productivity and cost-saving initiatives, along with better market execution. Moreover, an improving economy, better industry pricing dynamics and a consistency in positive innovation bode well. It rolled out several products recently which management believes will drive sales and profits in 2017. That said, growing health awareness has been hurting the CSD category, resulting in a 4% volume decline in the first nine months of 2017 in North America. Again, rising volatility in global markets and increasing currency headwinds may dampen growth. Meanwhile, PepsiCo’s shares have gained 12.2% year to date, underperforming the industry’s growth of 13.4%.”
A number of other analysts have also recently weighed in on PEP. BidaskClub raised Pepsico from a hold rating to a buy rating in a research report on Thursday, August 17th. Susquehanna Bancshares reissued a buy rating and set a $135.00 price objective on shares of Pepsico in a research report on Monday, October 2nd. Jefferies Group cut Pepsico from a buy rating to a hold rating and cut their price objective for the stock from $133.00 to $108.00 in a research report on Monday, October 2nd. Credit Suisse Group reissued a hold rating and set a $122.00 price objective (down previously from $124.00) on shares of Pepsico in a research report on Thursday, October 5th. Finally, Deutsche Bank reissued a buy rating and set a $122.00 price objective (down previously from $125.00) on shares of Pepsico in a research report on Friday, October 6th. Eight equities research analysts have rated the stock with a hold rating, eight have issued a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of Buy and a consensus price target of $122.73.
Shares of Pepsico (PEP) traded up $0.22 during trading hours on Tuesday, hitting $118.02. The company’s stock had a trading volume of 4,057,700 shares, compared to its average volume of 3,660,545. Pepsico has a 12 month low of $101.06 and a 12 month high of $119.39. The firm has a market capitalization of $167,528.44, a PE ratio of 23.01, a P/E/G ratio of 3.20 and a beta of 0.68. The company has a quick ratio of 1.21, a current ratio of 1.35 and a debt-to-equity ratio of 2.32.
Pepsico (NYSE:PEP) last announced its quarterly earnings results on Wednesday, October 4th. The company reported $1.48 earnings per share for the quarter, topping analysts’ consensus estimates of $1.43 by $0.05. Pepsico had a return on equity of 59.68% and a net margin of 10.97%. The company had revenue of $16.24 billion during the quarter, compared to analysts’ expectations of $16.35 billion. During the same quarter in the previous year, the firm earned $1.40 earnings per share. The business’s quarterly revenue was up 1.3% compared to the same quarter last year. equities analysts forecast that Pepsico will post 5.22 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Monday, January 8th. Investors of record on Friday, December 1st will be paid a dividend of $0.805 per share. The ex-dividend date of this dividend is Thursday, November 30th. This represents a $3.22 annualized dividend and a yield of 2.73%. Pepsico’s dividend payout ratio is 66.53%.
In related news, insider Ramon Laguarta sold 21,449 shares of the business’s stock in a transaction dated Tuesday, October 10th. The stock was sold at an average price of $110.51, for a total transaction of $2,370,328.99. The sale was disclosed in a document filed with the SEC, which is available through this link. Insiders own 0.26% of the company’s stock.
A number of institutional investors and hedge funds have recently modified their holdings of PEP. Grove Bank & Trust grew its stake in shares of Pepsico by 41.6% in the 2nd quarter. Grove Bank & Trust now owns 11,371 shares of the company’s stock valued at $1,313,000 after purchasing an additional 3,339 shares during the period. Wedbush Securities Inc. grew its stake in shares of Pepsico by 20.4% in the 2nd quarter. Wedbush Securities Inc. now owns 17,247 shares of the company’s stock valued at $1,992,000 after purchasing an additional 2,922 shares during the period. Stratos Wealth Partners LTD. grew its stake in shares of Pepsico by 3.8% in the 2nd quarter. Stratos Wealth Partners LTD. now owns 78,716 shares of the company’s stock valued at $9,091,000 after purchasing an additional 2,905 shares during the period. Pioneer Investment Management Inc. grew its stake in shares of Pepsico by 2.1% in the 2nd quarter. Pioneer Investment Management Inc. now owns 4,506,679 shares of the company’s stock valued at $520,476,000 after purchasing an additional 91,851 shares during the period. Finally, Koshinski Asset Management Inc. grew its stake in shares of Pepsico by 4.0% in the 2nd quarter. Koshinski Asset Management Inc. now owns 6,907 shares of the company’s stock valued at $798,000 after purchasing an additional 265 shares during the period. Hedge funds and other institutional investors own 70.50% of the company’s stock.
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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