Zacks Investment Research upgraded shares of Pepsico, Inc. (NYSE:PEP) from a hold rating to a buy rating in a research note published on Tuesday, October 31st. They currently have $123.00 price target on the stock.
According to Zacks, “PepsiCo reported mixed third-quarter 2017 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Nonetheless, this is the sixth consecutive quarter of positive earnings surprise. On a year-over-year basis, core earnings and revenues grew 6% and 1.3%, respectively. 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. Revenues increased 1.7% on an organic basis, primarily driven by higher demand for beverages/food/snacks in the Asia, Middle East and North Africa, Europe Sub-Saharan Africa and Latin America segments. Total volumes however declined 1% during the quarter against flat growth in the previous quarter. Core gross margins also contracted 15 basis points.”
A number of other research analysts also recently issued reports on PEP. Stifel Nicolaus reiterated a hold rating and set a $116.00 price objective on shares of Pepsico in a report on Friday, October 13th. Deutsche Bank AG reiterated a buy rating and set a $122.00 price objective (down from $125.00) on shares of Pepsico in a report on Friday, October 6th. Credit Suisse Group reiterated a hold rating and set a $122.00 price objective (down from $124.00) on shares of Pepsico in a report on Thursday, October 5th. Susquehanna Bancshares Inc reiterated a buy rating and set a $135.00 price objective on shares of Pepsico in a report on Monday, October 2nd. Finally, Jefferies Group LLC downgraded Pepsico from a buy rating to a hold rating and decreased their price target for the company from $133.00 to $108.00 in a research note on Monday, October 2nd. Seven research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the company. The stock currently has a consensus rating of Buy and an average target price of $121.35.
Pepsico (PEP) opened at $112.75 on Tuesday. The company has a debt-to-equity ratio of 2.32, a quick ratio of 1.21 and a current ratio of 1.35. Pepsico has a one year low of $98.50 and a one year high of $119.39. The stock has a market capitalization of $160,346.61, a price-to-earnings ratio of 22.02, a PEG ratio of 3.06 and a beta of 0.66.
Pepsico (NYSE:PEP) last released its earnings results on Wednesday, October 4th. The company reported $1.48 earnings per share for the quarter, beating the consensus estimate of $1.43 by $0.05. Pepsico had a return on equity of 59.68% and a net margin of 10.97%. The firm had revenue of $16.24 billion for the quarter, compared to analyst estimates of $16.35 billion. During the same quarter in the prior year, the firm posted $1.40 earnings per share. The company’s quarterly revenue was up 1.3% on a year-over-year basis. analysts forecast that Pepsico will post 5.22 EPS for the current fiscal year.
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In other Pepsico news, insider Ramon Laguarta sold 21,449 shares of Pepsico 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 filing with the SEC, which is available through this hyperlink. 0.26% of the stock is currently owned by insiders.
Hedge funds have recently bought and sold shares of the stock. Barnett & Company Inc. raised its stake in Pepsico by 270.4% during the 2nd quarter. Barnett & Company Inc. now owns 900 shares of the company’s stock worth $104,000 after buying an additional 657 shares during the period. Aviance Capital Management LLC acquired a new position in Pepsico during the 2nd quarter worth approximately $111,000. Legacy Advisors LLC acquired a new position in Pepsico during the 3rd quarter worth approximately $115,000. Asset Planning Services Ltd. raised its stake in Pepsico by 0.3% during the 2nd quarter. Asset Planning Services Ltd. now owns 1,006 shares of the company’s stock worth $116,000 after buying an additional 3 shares during the period. Finally, Patriot Financial Group Insurance Agency LLC raised its stake in Pepsico by 5.9% during the 2nd quarter. Patriot Financial Group Insurance Agency LLC now owns 1,211 shares of the company’s stock worth $138,000 after buying an additional 67 shares during the period. 70.54% of the stock is currently owned by institutional investors and hedge funds.
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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