PepsiCo (NASDAQ:PEP) Shares Gap Down – Should You Sell?

PepsiCo, Inc. (NASDAQ:PEP) shares gapped down prior to trading on Wednesday . The stock had previously closed at $152.33, but opened at $147.55. PepsiCo shares last traded at $149.04, with a volume of 1,304,224 shares traded.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on PEP. TD Cowen reduced their target price on PepsiCo from $183.00 to $160.00 and set a “hold” rating for the company in a report on Wednesday, January 8th. Morgan Stanley reduced their target price on PepsiCo from $185.00 to $168.00 and set an “equal weight” rating for the company in a report on Wednesday, February 5th. Barclays boosted their target price on PepsiCo from $153.00 to $168.00 and gave the stock an “overweight” rating in a report on Thursday, March 6th. StockNews.com lowered PepsiCo from a “buy” rating to a “hold” rating in a report on Thursday, February 6th. Finally, Royal Bank of Canada started coverage on PepsiCo in a report on Tuesday, February 4th. They issued a $172.00 target price on the stock. One investment analyst has rated the stock with a sell rating, thirteen have issued a hold rating and seven have issued a buy rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $170.59.

PepsiCo Stock Performance

The firm has a fifty day simple moving average of $148.78 and a 200 day simple moving average of $160.29. The company has a current ratio of 0.82, a quick ratio of 0.65 and a debt-to-equity ratio of 2.05. The stock has a market cap of $203.45 billion, a price-to-earnings ratio of 21.34, a PEG ratio of 3.09 and a beta of 0.52.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings data on Tuesday, February 4th. The company reported $1.96 earnings per share for the quarter, beating analysts’ consensus estimates of $1.94 by $0.02. The company had revenue of $27.78 billion for the quarter, compared to the consensus estimate of $27.89 billion. PepsiCo had a return on equity of 58.87% and a net margin of 10.43%. The company’s quarterly revenue was down .2% on a year-over-year basis. During the same period in the previous year, the business earned $1.78 earnings per share. As a group, sell-side analysts expect that PepsiCo, Inc. will post 8.3 earnings per share for the current year.

PepsiCo Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Shareholders of record on Friday, March 7th will be issued a dividend of $1.355 per share. This represents a $5.42 dividend on an annualized basis and a yield of 3.65%. The ex-dividend date of this dividend is Friday, March 7th. PepsiCo’s payout ratio is 77.99%.

Institutional Investors Weigh In On PepsiCo

A number of institutional investors have recently added to or reduced their stakes in PEP. Collier Financial acquired a new position in shares of PepsiCo in the 4th quarter worth approximately $28,000. WealthTrak Capital Management LLC acquired a new position in shares of PepsiCo in the 4th quarter worth approximately $28,000. Creative Capital Management Investments LLC acquired a new position in shares of PepsiCo in the 4th quarter worth approximately $30,000. Prudent Man Investment Management Inc. acquired a new position in shares of PepsiCo in the 4th quarter worth approximately $30,000. Finally, Legacy Investment Solutions LLC acquired a new position in shares of PepsiCo in the 3rd quarter worth approximately $31,000. 73.07% of the stock is owned by institutional investors and hedge funds.

About PepsiCo

PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.