According to Zacks, “Soft CSD volumes is a pressing concern for Pepsi. Further, growing health awareness is hurting the CSD category, resulting in a 3% volume decline in the first half of 2016. Again, rising volatility in global markets and increasing currency headwind may dampen growth, going forward. That said, Pepsi has been doing well on the back of significant innovation, continued momentum in Frito-Lay business, revenue management strategies, improved productivity and better market execution. Moreover, Pepsi 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. We believe that Pepsi’ new product lineup, aggressive marketing efforts, productivity improvement and cost-saving initiatives should drive profits. Pepsi has rolled out several new products recently which management believes should drive sales and profits in the second half.”
A number of other brokerages have also recently weighed in on PEP. Vetr cut PepsiCo from a hold rating to a sell rating and set a $99.50 price objective for the company. in a research note on Wednesday, June 29th. BMO Capital Markets reaffirmed an outperform rating on shares of PepsiCo in a research note on Friday, July 15th. Argus lifted their price objective on PepsiCo from $116.00 to $124.00 and gave the company a buy rating in a research note on Wednesday, July 13th. Jefferies Group reaffirmed a buy rating and issued a $119.00 price objective on shares of PepsiCo in a research note on Wednesday, June 29th. Finally, Sanford C. Bernstein reaffirmed an outperform rating and issued a $118.00 price objective on shares of PepsiCo in a research note on Wednesday, August 10th. One analyst has rated the stock with a sell rating, ten have assigned a hold rating and fourteen have assigned a buy rating to the company’s stock. The company currently has an average rating of Buy and a consensus target price of $111.34.
PepsiCo (NYSE:PEP) opened at 107.49 on Thursday. PepsiCo has a 12 month low of $92.53 and a 12 month high of $110.94. The firm has a market capitalization of $154.69 billion, a price-to-earnings ratio of 30.37 and a beta of 0.48. The company’s 50-day moving average price is $107.24 and its 200 day moving average price is $105.03.
PepsiCo (NYSE:PEP) last posted its earnings results on Thursday, July 7th. The company reported $1.35 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.30 by $0.05. The company earned $15.40 billion during the quarter. PepsiCo had a return on equity of 54.91% and a net margin of 8.34%. PepsiCo’s revenue was down 3.3% compared to the same quarter last year. During the same period last year, the business earned $1.32 EPS. Analysts predict that PepsiCo will post $4.76 EPS for the current year.
The firm also recently announced a quarterly dividend, which will be paid on Friday, September 30th. Shareholders of record on Friday, September 2nd will be given a dividend of $0.7525 per share. This represents a $3.01 annualized dividend and a yield of 2.80%. The ex-dividend date is Wednesday, August 31st. PepsiCo’s payout ratio is 84.79%.
In other PepsiCo news, CEO Laxman Narasimhan sold 3,219 shares of the business’s stock in a transaction that occurred on Wednesday, July 13th. The stock was sold at an average price of $109.11, for a total transaction of $351,225.09. Following the transaction, the chief executive officer now owns 97,057 shares in the company, valued at approximately $10,589,889.27. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Marie T. Gallagher sold 13,586 shares of the business’s stock in a transaction that occurred on Monday, July 11th. The stock was sold at an average price of $109.01, for a total value of $1,481,009.86. Following the transaction, the senior vice president now owns 58,183 shares in the company, valued at approximately $6,342,528.83. The disclosure for this sale can be found here. Company insiders own 0.33% of the company’s stock.
Institutional investors have recently added to or reduced their stakes in the company. Chevy Chase Trust Holdings Inc. boosted its position in PepsiCo by 4.8% in the first quarter. Chevy Chase Trust Holdings Inc. now owns 1,498,012 shares of the company’s stock valued at $153,517,000 after buying an additional 69,285 shares during the last quarter. Toth Financial Advisory Corp boosted its position in PepsiCo by 0.8% in the first quarter. Toth Financial Advisory Corp now owns 59,823 shares of the company’s stock valued at $6,131,000 after buying an additional 470 shares during the last quarter. Community Trust & Investment Co. boosted its position in PepsiCo by 7.8% in the first quarter. Community Trust & Investment Co. now owns 116,620 shares of the company’s stock valued at $11,951,000 after buying an additional 8,416 shares during the last quarter. Kistler Tiffany Companies LLC boosted its position in PepsiCo by 1.8% in the first quarter. Kistler Tiffany Companies LLC now owns 25,956 shares of the company’s stock valued at $2,660,000 after buying an additional 463 shares during the last quarter. Finally, Iowa State Bank boosted its position in PepsiCo by 0.5% in the first quarter. Iowa State Bank now owns 45,857 shares of the company’s stock valued at $4,699,000 after buying an additional 220 shares during the last quarter. Institutional investors own 69.81% of the company’s stock.
PepsiCo, Inc is a food and beverage company. The Company, through its operations, bottlers, contract manufacturers and other third parties, is engaged in making, marketing, distributing and selling a range of beverages, foods and snacks, serving in over 200 countries and territories. The Company operates through six segments, namely, Frito-Lay North America (FLNA); Quaker Foods North America (QFNA); North America Beverages (NAB); Latin America, which includes its beverage, food and snack businesses in Latin America; Europe Sub-Saharan Africa (ESSA), which includes its beverage, food and snack businesses in Europe and Sub-Saharan Africa, and Asia, Middle East and North Africa (AMENA), which includes its beverage, food and snack businesses in Asia, Middle East and North Africa.
For more information about research offerings from Zacks Investment Research, visit Zacks.com
Receive News & Ratings for PepsiCo Inc. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for PepsiCo Inc. and related companies with MarketBeat.com's FREE daily email newsletter.