Wells Fargo & Company Has Lowered Expectations for PepsiCo (NASDAQ:PEP) Stock Price

PepsiCo (NASDAQ:PEP) had its price target reduced by equities researchers at Wells Fargo & Company from $165.00 to $160.00 in a research report issued to clients and investors on Monday,MarketScreener reports. Wells Fargo & Company‘s target price points to a potential upside of 7.30% from the stock’s current price.

Other equities analysts have also issued reports about the company. Rothschild & Co Redburn increased their price objective on PepsiCo from $130.00 to $132.00 in a research report on Monday, May 11th. Morgan Stanley upped their target price on PepsiCo from $165.00 to $180.00 and gave the stock an “equal weight” rating in a research note on Wednesday, February 4th. JPMorgan Chase & Co. lifted their price target on shares of PepsiCo from $172.00 to $178.00 and gave the stock an “overweight” rating in a research note on Friday, April 17th. Piper Sandler boosted their price objective on shares of PepsiCo from $172.00 to $181.00 and gave the stock an “overweight” rating in a report on Thursday, March 12th. Finally, BNP Paribas Exane upped their price objective on shares of PepsiCo from $191.00 to $195.00 and gave the company an “outperform” rating in a research note on Friday, April 17th. Eight research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $170.11.

PepsiCo Stock Performance

PepsiCo stock opened at $149.12 on Monday. PepsiCo has a fifty-two week low of $127.60 and a fifty-two week high of $171.48. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90. The stock has a market cap of $203.81 billion, a P/E ratio of 23.41, a price-to-earnings-growth ratio of 2.73 and a beta of 0.38. The firm’s fifty day moving average price is $155.25 and its 200-day moving average price is $152.41.

PepsiCo (NASDAQ:PEP) last released its earnings results on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, beating analysts’ consensus estimates of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The business had revenue of $19.44 billion for the quarter, compared to analysts’ expectations of $18.89 billion. During the same quarter in the prior year, the firm earned $1.48 earnings per share. The firm’s revenue was up 8.5% on a year-over-year basis. On average, equities research analysts expect that PepsiCo will post 8.63 earnings per share for the current fiscal year.

PepsiCo declared that its Board of Directors has approved a stock repurchase plan on Tuesday, February 3rd that permits the company to buyback $10.00 billion in shares. This buyback authorization permits the company to purchase up to 4.7% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Evergreen Advisors LLC purchased a new stake in PepsiCo in the first quarter worth $25,000. Gunpowder Capital Management LLC dba Oliver Wealth Management purchased a new position in PepsiCo during the 4th quarter valued at $26,000. JCIC Asset Management Inc. bought a new position in PepsiCo in the 3rd quarter worth $27,000. Swiss RE Ltd. purchased a new stake in shares of PepsiCo in the 4th quarter worth about $28,000. Finally, MH & Associates Securities Management Corp ADV bought a new stake in shares of PepsiCo during the 4th quarter valued at about $29,000. Hedge funds and other institutional investors own 73.07% of the company’s stock.

About PepsiCo

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.