PepsiCo Inc. (PEP) Stock Rating Lowered by Zacks Investment Research
PepsiCo Inc. (NYSE:PEP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Friday.
According to Zacks, “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 rolled out several products recently which management believes will drive sales and profits in the remainder of 2016. That said, growing health awareness has been hurting the CSD category, resulting in a 3% volume decline in the first three quarters of 2016. Again, rising volatility in global markets and increasing currency headwind may dampen growth, going forward.”
A number of other brokerages have also recently issued reports on PEP. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $118.00 price objective on shares of PepsiCo in a research note on Wednesday, August 10th. Morgan Stanley reaffirmed an “overweight” rating and set a $121.00 price objective on shares of PepsiCo in a research note on Friday, September 30th. reaffirmed an “outperform” rating on shares of PepsiCo in a research note on Monday, August 22nd. Bank of America Corp. reaffirmed a “buy” rating and set a $120.00 price objective on shares of PepsiCo in a research note on Thursday, September 22nd. Finally, Vetr raised PepsiCo from a “hold” rating to a “buy” rating and set a $112.11 price objective on the stock in a research note on Wednesday, September 7th. Nine equities research analysts have rated the stock with a hold rating, twelve 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 price target of $113.77.
PepsiCo (NYSE:PEP) opened at 102.26 on Friday. The company’s 50-day moving average price is $105.66 and its 200-day moving average price is $105.89. PepsiCo has a 1-year low of $93.25 and a 1-year high of $110.94. The firm has a market capitalization of $146.66 billion, a P/E ratio of 22.44 and a beta of 0.54.
PepsiCo (NYSE:PEP) last released its earnings results on Thursday, September 29th. The company reported $1.40 EPS for the quarter, beating the Zacks’ consensus estimate of $1.32 by $0.08. The business had revenue of $16 billion for the quarter. PepsiCo had a return on equity of 56.16% and a net margin of 10.74%. The firm’s revenue was down 1.9% compared to the same quarter last year. During the same period in the prior year, the company earned $1.35 EPS. Equities research analysts expect that PepsiCo will post $4.81 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which will be paid on Friday, January 6th. Investors of record on Friday, December 2nd will be given a dividend of $0.7525 per share. This represents a $3.01 annualized dividend and a dividend yield of 2.94%. The ex-dividend date is Wednesday, November 30th. PepsiCo’s dividend payout ratio (DPR) is currently 66.01%.
Several large investors have recently made changes to their positions in the stock. Wellington Management Group LLP increased its stake in PepsiCo by 40.9% in the first quarter. Wellington Management Group LLP now owns 21,691,078 shares of the company’s stock worth $2,222,902,000 after buying an additional 6,297,861 shares during the period. Bank of Montreal Can bought a new stake in PepsiCo during the second quarter worth approximately $519,379,000. The Manufacturers Life Insurance Company bought a new stake in PepsiCo during the third quarter worth approximately $415,795,000. Price T Rowe Associates Inc. MD increased its stake in PepsiCo by 21.1% in the third quarter. Price T Rowe Associates Inc. MD now owns 21,642,802 shares of the company’s stock worth $2,354,088,000 after buying an additional 3,773,486 shares during the period. Finally, Emerald Acquisition Ltd. bought a new stake in PepsiCo during the second quarter worth approximately $370,675,000. 69.57% of the stock is owned by institutional investors.
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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