Zacks Investment Research cut shares of PepsiCo Inc. (NYSE:PEP) from a buy rating to a hold rating in a report published on Thursday.

According to Zacks, “Pepsi has been doing well on the back of significant innovation, 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’s 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. It has recently agreed to acquire a sparkling probiotic U.S. drinks company KeVita amid slowing soda sales. Growing health awareness has been hurting the CSD category and increasing currency headwind may dampen growth, going forward.”

PEP has been the subject of several other reports. Deutsche Bank AG reaffirmed a buy rating and set a $120.00 price objective on shares of PepsiCo in a research report on Monday, October 3rd. Morgan Stanley reaffirmed an overweight rating and set a $121.00 price objective on shares of PepsiCo in a research report on Friday, September 30th. Sanford C. Bernstein reaffirmed an outperform rating and set a $118.00 price objective on shares of PepsiCo in a research report on Wednesday, August 10th. reaffirmed an outperform rating on shares of PepsiCo in a research report on Monday, August 22nd. Finally, BMO Capital Markets reaffirmed an outperform rating and set a $120.00 price objective (up from $116.00) on shares of PepsiCo in a research report on Friday, September 30th. Nine equities research analysts have rated the stock with a hold rating, twelve have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The stock presently has an average rating of Buy and a consensus price target of $113.71.

PepsiCo (NYSE:PEP) opened at 101.53 on Thursday. The company’s 50-day moving average price is $105.36 and its 200 day moving average price is $105.84. The stock has a market capitalization of $145.61 billion, a PE ratio of 22.28 and a beta of 0.54. PepsiCo has a 12 month low of $93.25 and a 12 month high of $110.94.

PepsiCo (NYSE:PEP) last issued its quarterly earnings results on Thursday, September 29th. The company reported $1.40 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.32 by $0.08. PepsiCo had a return on equity of 56.16% and a net margin of 10.74%. The company had revenue of $16 billion for the quarter. During the same quarter last year, the company earned $1.35 EPS. PepsiCo’s revenue for the quarter was down 1.9% compared to the same quarter last year. On average, analysts forecast that PepsiCo will post $4.81 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Friday, January 6th. Investors of record on Friday, December 2nd will be issued a $0.7525 dividend. This represents a $3.01 dividend on an annualized basis and a yield of 2.96%. The ex-dividend date of this dividend is Wednesday, November 30th. PepsiCo’s payout ratio is currently 66.01%.

Hedge funds and other institutional investors have recently modified their holdings of the stock. Simmons Bank bought a new position in PepsiCo during the first quarter valued at approximately $5,091,000. Arete Wealth Advisors LLC raised its position in PepsiCo by 22.3% in the first quarter. Arete Wealth Advisors LLC now owns 2,686 shares of the company’s stock valued at $275,000 after buying an additional 490 shares during the period. Geode Capital Management LLC raised its position in PepsiCo by 4.8% in the first quarter. Geode Capital Management LLC now owns 12,518,040 shares of the company’s stock valued at $1,280,408,000 after buying an additional 573,839 shares during the period. Marshall & Sullivan Inc. WA raised its position in PepsiCo by 1.0% in the first quarter. Marshall & Sullivan Inc. WA now owns 29,130 shares of the company’s stock valued at $2,985,000 after buying an additional 286 shares during the period. Finally, Fairfield Bush & CO. raised its position in PepsiCo by 9.5% in the first quarter. Fairfield Bush & CO. now owns 53,048 shares of the company’s stock valued at $5,436,000 after buying an additional 4,597 shares during the period. Hedge funds and other institutional investors own 69.57% of the company’s stock.

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About PepsiCo

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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