Pepsico, Inc. (PEP) Downgraded by Zacks Investment Research to “Hold”
Zacks Investment Research cut shares of Pepsico, Inc. (NYSE:PEP) from a buy rating to a hold rating in a report published on Monday morning.
According to Zacks, “PepsiCo’s shares outperformed the industry to which it belongs in the past one year. The company 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, it has been seeing higher volumes and profits in the North American segments due to an improving economy, better industry pricing dynamics and a consistency in positive innovation. 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 3% volume decline in the first half of 2017 in North America.”
A number of other research analysts have also weighed in on PEP. BidaskClub lowered Pepsico from a buy rating to a hold rating in a report on Friday, August 25th. Royal Bank Of Canada restated a hold rating and issued a $115.00 target price on shares of Pepsico in a report on Thursday, May 25th. Susquehanna Bancshares Inc restated a positive rating and issued a $133.00 target price (down previously from $134.00) on shares of Pepsico in a report on Thursday, July 6th. Credit Suisse Group raised their target price on Pepsico from $124.00 to $126.00 and gave the company an outperform rating in a report on Wednesday, July 12th. Finally, Stifel Nicolaus restated a hold rating on shares of Pepsico in a report on Wednesday, May 31st. Five equities research analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has issued a strong buy rating to the stock. The company has an average rating of Buy and an average target price of $123.47.
Pepsico (NYSE:PEP) opened at 116.99 on Monday. The firm has a market cap of $166.77 billion, a price-to-earnings ratio of 24.78 and a beta of 0.68. Pepsico has a 52-week low of $98.50 and a 52-week high of $119.39. The firm’s 50 day moving average price is $116.70 and its 200 day moving average price is $114.37.
Pepsico (NYSE:PEP) last posted its earnings results on Tuesday, July 11th. The company reported $1.50 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.40 by $0.10. Pepsico had a return on equity of 59.74% and a net margin of 10.77%. The company had revenue of $15.71 billion for the quarter, compared to analyst estimates of $15.57 billion. During the same quarter last year, the company earned $1.35 earnings per share. The company’s revenue for the quarter was up 2.0% on a year-over-year basis. Equities research analysts anticipate that Pepsico will post $5.15 EPS for the current fiscal year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, September 29th. Investors of record on Friday, September 1st will be given a dividend of $0.805 per share. This represents a $3.22 dividend on an annualized basis and a dividend yield of 2.75%. The ex-dividend date of this dividend is Wednesday, August 30th. Pepsico’s payout ratio is 68.22%.
In other Pepsico news, Chairman Indra K. Nooyi sold 452,830 shares of the firm’s stock in a transaction on Tuesday, July 25th. The stock was sold at an average price of $116.44, for a total value of $52,727,525.20. Following the completion of the sale, the chairman now directly owns 733,315 shares of the company’s stock, valued at $85,387,198.60. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Marie T. Gallagher sold 41,489 shares of the firm’s stock in a transaction on Monday, August 7th. The stock was sold at an average price of $116.77, for a total value of $4,844,670.53. Following the completion of the sale, the senior vice president now directly owns 76,037 shares of the company’s stock, valued at $8,878,840.49. The disclosure for this sale can be found here. Insiders sold 898,164 shares of company stock valued at $104,585,929 over the last three months. Company insiders own 0.26% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in PEP. Barnett & Company Inc. increased its position in Pepsico by 270.4% in the second quarter. Barnett & Company Inc. now owns 900 shares of the company’s stock worth $104,000 after buying an additional 657 shares during the last quarter. Aviance Capital Management LLC purchased a new stake in Pepsico in the second quarter worth $111,000. Asset Planning Services Ltd. increased its position in Pepsico by 66.1% in the first quarter. Asset Planning Services Ltd. now owns 1,003 shares of the company’s stock worth $112,000 after buying an additional 399 shares during the last quarter. Patriot Financial Group Insurance Agency LLC increased 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 worth $138,000 after buying an additional 67 shares during the last quarter. Finally, Riggs Asset Managment Co. Inc. increased its position in Pepsico by 14.9% in the first quarter. Riggs Asset Managment Co. Inc. now owns 1,270 shares of the company’s stock worth $142,000 after buying an additional 165 shares during the last quarter. 70.16% of the stock is owned by institutional investors and hedge funds.
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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