Zacks Investment Research upgraded shares of Pepsico, Inc. (NYSE:PEP) from a hold rating to a buy rating in a report released on Tuesday, October 31st. Zacks Investment Research currently has $123.00 price objective 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 commented on the stock. BMO Capital Markets reissued a hold rating and set a $120.00 target price on shares of Pepsico in a research report on Wednesday, September 6th. BidaskClub raised shares of Pepsico from a hold rating to a buy rating in a research report on Thursday, August 17th. Susquehanna Bancshares Inc reissued a positive rating and set a $133.00 target price (down previously from $134.00) on shares of Pepsico in a research report on Thursday, July 6th. Cowen and Company reissued a buy rating on shares of Pepsico in a research report on Sunday, September 17th. Finally, Macquarie assumed coverage on shares of Pepsico in a research report on Thursday, September 14th. They set an outperform rating and a $125.00 target price on the stock. Seven research analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the stock. Pepsico has a consensus rating of Buy and a consensus target price of $121.35.
Shares of Pepsico (NYSE PEP) traded down $0.55 during trading hours on Tuesday, hitting $114.68. 2,635,146 shares of the company’s stock were exchanged, compared to its average volume of 3,208,880. The stock has a market cap of $163,091.36, a PE ratio of 22.40, a P/E/G ratio of 3.12 and a beta of 0.66. 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 has a 1-year low of $98.50 and a 1-year high of $119.39.
Pepsico (NYSE:PEP) last released its earnings results on Wednesday, October 4th. The company reported $1.48 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.43 by $0.05. Pepsico had a net margin of 10.97% and a return on equity of 59.68%. The firm had revenue of $16.24 billion during the quarter, compared to analyst estimates of $16.35 billion. During the same quarter last year, the business earned $1.40 EPS. The business’s revenue was up 1.3% on a year-over-year basis. equities research analysts forecast that Pepsico will post 5.22 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Monday, January 8th. Stockholders of record on Friday, December 1st will be issued a dividend of $0.805 per share. This represents a $3.22 dividend on an annualized basis and a dividend yield of 2.81%. Pepsico’s payout ratio is 66.53%.
In other news, insider Ramon Laguarta sold 21,449 shares of the company’s stock in a transaction on Tuesday, October 10th. The shares were sold at an average price of $110.51, for a total transaction of $2,370,328.99. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 0.26% of the stock is owned by corporate insiders.
Institutional investors and hedge funds have recently made changes to their positions in the stock. Barnett & Company Inc. grew its holdings in shares of Pepsico by 270.4% in 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 during the period. Aviance Capital Management LLC acquired a new position in Pepsico in the second quarter valued at about $111,000. Legacy Advisors LLC acquired a new position in Pepsico in the third quarter valued at about $115,000. Asset Planning Services Ltd. lifted its position in Pepsico by 0.3% in the second quarter. Asset Planning Services Ltd. now owns 1,006 shares of the company’s stock valued at $116,000 after buying an additional 3 shares during the last quarter. Finally, Patriot Financial Group Insurance Agency LLC lifted its position in 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 buying an additional 67 shares during the last quarter. 70.21% of the stock is owned by hedge funds and other 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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