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.”
Other research analysts also recently issued reports about the company. Vetr upgraded PepsiCo from a hold rating to a buy rating and set a $112.11 price objective for the company in a research note on Wednesday, September 7th. Deutsche Bank AG upped their price objective on PepsiCo from $115.00 to $120.00 and gave the stock a buy rating in a research note on Friday, July 8th. Jefferies Group restated a buy rating and set a $124.00 price objective (up from $119.00) on shares of PepsiCo in a research note on Wednesday, July 6th. Argus upped their price objective on PepsiCo from $116.00 to $124.00 and gave the stock a buy rating in a research note on Wednesday, July 13th. Finally, Susquehanna restated a neutral rating on shares of PepsiCo in a research note on Sunday, July 10th. One equities research analyst has rated the stock with a sell rating, ten have assigned a hold rating and fourteen have given a buy rating to the stock. The stock currently has an average rating of Buy and a consensus price target of $111.34.
Shares of PepsiCo (NYSE:PEP) opened at 107.03 on Thursday. The firm’s 50-day moving average is $107.26 and its 200 day moving average is $104.98. PepsiCo has a 52 week low of $92.31 and a 52 week high of $110.94. The firm has a market capitalization of $154.03 billion, a PE ratio of 30.24 and a beta of 0.48.
PepsiCo (NYSE:PEP) last issued its quarterly earnings results on Thursday, July 7th. The company reported $1.35 earnings per share for the quarter, beating the Zacks’ consensus estimate of $1.30 by $0.05. PepsiCo had a return on equity of 54.91% and a net margin of 8.34%. The business earned $15.40 billion during the quarter. During the same quarter last year, the firm posted $1.32 earnings per share. PepsiCo’s revenue was down 3.3% compared to the same quarter last year. On average, equities analysts forecast that PepsiCo will post $4.76 earnings per share for the current year.
The company 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 $0.7525 dividend. This represents a $3.01 annualized dividend and a yield of 2.81%. The ex-dividend date of this dividend is Wednesday, August 31st. PepsiCo’s payout ratio is currently 84.79%.
In other news, EVP Mehmood Khan sold 51,137 shares of the stock in a transaction dated Thursday, July 28th. The stock was sold at an average price of $107.30, for a total transaction of $5,487,000.10. Following the transaction, the executive vice president now owns 164,464 shares of the company’s stock, valued at approximately $17,646,987.20. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Albert P. Carey sold 170,003 shares of the stock in a transaction dated Tuesday, July 12th. The shares were sold at an average price of $108.81, for a total value of $18,498,026.43. Following the transaction, the chief executive officer now directly owns 306,138 shares in the company, valued at approximately $33,310,875.78. The disclosure for this sale can be found here. 0.33% of the stock is owned by company insiders.
Several hedge funds and other institutional investors have recently modified their holdings of PEP. BlackRock Fund Advisors raised its position in shares of PepsiCo by 2.8% in the first quarter. BlackRock Fund Advisors now owns 20,058,028 shares of the company’s stock worth $2,055,547,000 after buying an additional 543,183 shares in the last quarter. Credit Agricole S A raised its position in shares of PepsiCo by 3.9% in the first quarter. Credit Agricole S A now owns 2,119,767 shares of the company’s stock worth $217,235,000 after buying an additional 80,183 shares in the last quarter. AMP Capital Investors Ltd raised its position in shares of PepsiCo by 7.9% in the first quarter. AMP Capital Investors Ltd now owns 956,160 shares of the company’s stock worth $98,191,000 after buying an additional 70,410 shares in the last quarter. BlackRock Japan Co. Ltd raised its position in shares of PepsiCo by 4.3% in the first quarter. BlackRock Japan Co. Ltd now owns 1,912,976 shares of the company’s stock worth $196,042,000 after buying an additional 78,848 shares in the last quarter. Finally, Exxonmobil Investment Management Inc. TX raised its position in shares of PepsiCo by 6.2% in the second quarter. Exxonmobil Investment Management Inc. TX now owns 373,888 shares of the company’s stock worth $39,610,000 after buying an additional 21,965 shares in the last quarter. 69.81% of the stock is currently owned by institutional investors and hedge funds.
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.
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