PepsiCo Inc. (PEP) Shares Gap Up Following Better-Than-Expected Earnings
PepsiCo Inc. (NYSE:PEP) shares gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $107.20, but opened at $107.38. PepsiCo shares last traded at $108.20, with a volume of 4,402,924 shares trading hands.
The company reported $1.40 EPS for the quarter, topping the consensus estimate of $1.32 by $0.08. PepsiCo had a net margin of 8.34% and a return on equity of 54.91%. The firm had revenue of $16 billion for the quarter, compared to the consensus estimate of $15.83 billion. During the same quarter in the previous year, the firm earned $1.35 earnings per share. The company’s quarterly revenue was down 1.9% compared to the same quarter last year.
The business also recently announced a quarterly dividend, which will be paid on Friday, September 30th. Stockholders of record on Friday, September 2nd will be issued a $0.7525 dividend. This represents a $3.01 annualized dividend and a dividend yield of 2.79%. The ex-dividend date of this dividend is Wednesday, August 31st. PepsiCo’s dividend payout ratio (DPR) is presently 84.79%.
Several research firms have recently commented on PEP. Vetr downgraded shares of PepsiCo from a “hold” rating to a “sell” rating and set a $99.50 target price on the stock. in a report on Wednesday, June 29th. Argus boosted their target price on shares of PepsiCo from $116.00 to $124.00 and gave the stock a “buy” rating in a report on Wednesday, July 13th. BMO Capital Markets reissued an “outperform” rating on shares of PepsiCo in a report on Friday, July 15th. Zacks Investment Research downgraded shares of PepsiCo from a “hold” rating to a “sell” rating in a report on Thursday, September 22nd. Finally, Jefferies Group reaffirmed a “buy” rating and set a $119.00 price target on shares of PepsiCo in a research note on Wednesday, June 29th. One 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 presently has an average rating of “Buy” and a consensus target price of $111.34.
In other news, CEO Ramon Laguarta sold 17,221 shares of the firm’s stock in a transaction dated Monday, July 11th. The shares were sold at an average price of $108.27, for a total value of $1,864,517.67. Following the sale, the chief executive officer now directly owns 142,325 shares in the company, valued at approximately $15,409,527.75. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Albert P. Carey sold 170,003 shares of the firm’s stock in a transaction dated Tuesday, July 12th. The shares were sold at an average price of $108.81, for a total transaction of $18,498,026.43. Following the completion of the sale, the chief executive officer now owns 306,138 shares in the company, valued at $33,310,875.78. The disclosure for this sale can be found here. 0.33% of the stock is currently owned by insiders.
Several hedge funds have recently added to or reduced their stakes in PEP. D. Scott Neal Inc. boosted its stake in PepsiCo by 8.1% in the second quarter. D. Scott Neal Inc. now owns 944 shares of the company’s stock worth $100,000 after buying an additional 71 shares in the last quarter. Piershale Financial Group Inc. boosted its stake in PepsiCo by 0.4% in the second quarter. Piershale Financial Group Inc. now owns 1,005 shares of the company’s stock worth $106,000 after buying an additional 4 shares in the last quarter. Delphi Private Advisors LLC boosted its stake in PepsiCo by 1.3% in the second quarter. Delphi Private Advisors LLC now owns 1,002 shares of the company’s stock worth $106,000 after buying an additional 13 shares in the last quarter. Global X Management Co. LLC boosted its stake in PepsiCo by 92.1% in the second quarter. Global X Management Co. LLC now owns 1,101 shares of the company’s stock worth $117,000 after buying an additional 528 shares in the last quarter. Finally, Stelac Advisory Services LLC boosted its stake in PepsiCo by 13.9% in the second quarter. Stelac Advisory Services LLC now owns 1,185 shares of the company’s stock worth $126,000 after buying an additional 145 shares in the last quarter. Institutional investors and hedge funds own 69.81% of the company’s stock.
The firm’s 50 day moving average price is $107.19 and its 200-day moving average price is $105.06. The stock has a market cap of $155.08 billion, a price-to-earnings ratio of 30.45 and a beta of 0.48.
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.
Receive News & Stock 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 stocks with our FREE daily email newsletter.