Pepsico (PEP) Stock Rating Lowered by Zacks Investment Research
Pepsico (NYSE:PEP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Tuesday.
According to Zacks, “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. Moreover, an improving economy, better industry pricing dynamics and a consistency in positive innovation bode well. It rolled out several products recently which management believes will drive sales and profits in 2017. Meanwhile, PepsiCo's shares outperformed its industry in the last three months. That said, growing health awareness has been hurting the CSD category, resulting in a 4% volume decline in the first nine months of 2017 in North America. Again, rising volatility in global markets and increasing currency headwinds may dampen growth.”
A number of other equities analysts also recently weighed in on the stock. Royal Bank Of Canada reissued a “hold” rating on shares of Pepsico in a report on Sunday, November 12th. Stifel Nicolaus reissued a “hold” rating and issued a $116.00 price target on shares of Pepsico in a report on Friday, October 13th. Deutsche Bank reissued a “buy” rating and issued a $122.00 price target (down from $125.00) on shares of Pepsico in a report on Friday, October 6th. Credit Suisse Group reissued a “hold” rating and issued a $122.00 price target (down from $124.00) on shares of Pepsico in a report on Thursday, October 5th. Finally, Susquehanna Bancshares reissued a “buy” rating and issued a $135.00 price target on shares of Pepsico in a report on Monday, October 2nd. Eight equities research analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the stock. The company has an average rating of “Buy” and a consensus price target of $121.96.
Pepsico (NYSE:PEP) opened at $118.90 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. The stock has a market cap of $167,044.91, a price-to-earnings ratio of 22.94, a price-to-earnings-growth ratio of 3.19 and a beta of 0.68. Pepsico has a fifty-two week low of $101.06 and a fifty-two week high of $119.39.
Pepsico (NYSE:PEP) last posted its quarterly earnings data on Wednesday, October 4th. The company reported $1.48 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $1.43 by $0.05. The firm had revenue of $16.24 billion for the quarter, compared to the consensus estimate of $16.35 billion. Pepsico had a net margin of 10.97% and a return on equity of 59.68%. The business’s revenue for the quarter was up 1.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.40 EPS. sell-side analysts anticipate that Pepsico will post 5.22 earnings per share for the current fiscal year.
In other Pepsico news, insider Ramon Laguarta sold 21,449 shares of the company’s stock in a transaction dated 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 filing with the SEC, which is available through the SEC website. 0.26% of the stock is owned by corporate insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in PEP. Vanguard Group Inc. increased its position in shares of Pepsico by 2.4% during the second quarter. Vanguard Group Inc. now owns 112,083,751 shares of the company’s stock valued at $12,944,553,000 after buying an additional 2,635,738 shares during the period. Janus Henderson Group PLC increased its position in shares of Pepsico by 910.5% during the second quarter. Janus Henderson Group PLC now owns 2,907,923 shares of the company’s stock valued at $335,840,000 after buying an additional 2,620,149 shares during the period. Sanders Capital LLC bought a new stake in shares of Pepsico during the first quarter valued at about $254,277,000. Harbour Capital Advisors LLC increased its position in shares of Pepsico by 11,316.2% during the second quarter. Harbour Capital Advisors LLC now owns 2,183,685 shares of the company’s stock valued at $18,908,000 after buying an additional 2,164,557 shares during the period. Finally, Stifel Financial Corp increased its position in shares of Pepsico by 7,632.6% during the third quarter. Stifel Financial Corp now owns 1,895,096 shares of the company’s stock valued at $210,972,000 after buying an additional 1,870,588 shares during the period. 70.50% of the stock is currently 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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