Pepsico, Inc. (PEP) Upgraded by Zacks Investment Research to Buy
Zacks Investment Research upgraded shares of Pepsico, Inc. (NYSE:PEP) from a hold rating to a buy rating in a report published on Tuesday. Zacks Investment Research currently has $129.00 price target on the stock.
According to Zacks, “PepsiCo’s shares outperformed the industry to which it belongs in the past 12 months. The company has been doing well on the back of significant innovation, continued momentum in Frito-Lay business, revenue management strategies, improved productivity and cost-saving initiatives, along with better market execution. Moreover, it 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. It rolled out several products recently which management believes will drive sales and profits in 2017. That said, growing health awareness has been hurting the CSD category, resulting in a 3% volume decline in the first half of 2017 in North America. Again, rising volatility in global markets and increasing currency headwinds may dampen growth.”
Several other brokerages have also recently commented on PEP. BidaskClub upgraded shares of Pepsico from a hold rating to a buy rating in a research note on Thursday, August 17th. Stifel Nicolaus restated a hold rating on shares of Pepsico in a research note on Wednesday, May 31st. BMO Capital Markets cut shares of Pepsico from an outperform rating to a market perform rating and boosted their target price for the company from $118.00 to $120.00 in a research note on Wednesday, June 7th. They noted that the move was a valuation call. Royal Bank Of Canada reiterated a hold rating and issued a $115.00 target price on shares of Pepsico in a research note on Thursday, May 25th. Finally, Jefferies Group LLC reiterated a buy rating and issued a $130.00 target price (up from $127.00) on shares of Pepsico in a research note on Thursday, July 6th. Five equities research analysts have rated the stock with a hold rating, thirteen have issued a buy rating and one has assigned a strong buy rating to the company. Pepsico has a consensus rating of Buy and an average price target of $123.40.
Shares of Pepsico (NYSE:PEP) opened at 115.84 on Tuesday. Pepsico has a 52 week low of $98.50 and a 52 week high of $119.39. The stock has a market cap of $165.13 billion, a price-to-earnings ratio of 24.53 and a beta of 0.67. The stock’s 50 day moving average is $116.38 and its 200 day moving average is $113.78.
Pepsico (NYSE:PEP) last announced its quarterly earnings data on Tuesday, July 11th. The company reported $1.50 EPS for the quarter, beating the consensus estimate of $1.40 by $0.10. Pepsico had a net margin of 10.77% and a return on equity of 59.74%. The business had revenue of $15.71 billion during the quarter, compared to analysts’ expectations of $15.57 billion. During the same period in the previous year, the business posted $1.35 EPS. The business’s quarterly revenue was up 2.0% compared to the same quarter last year. On average, equities analysts forecast that Pepsico will post $5.15 EPS for the current year.
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The firm also recently announced a quarterly dividend, which will be paid on Friday, September 29th. Stockholders of record on Friday, September 1st will be issued a dividend of $0.805 per share. This represents a $3.22 dividend on an annualized basis and a dividend yield of 2.78%. The ex-dividend date of this dividend is Wednesday, August 30th. Pepsico’s payout ratio is 68.22%.
In related news, SVP Marie T. Gallagher sold 41,489 shares of the company’s stock in a transaction dated Monday, August 7th. The shares were sold at an average price of $116.77, for a total value of $4,844,670.53. Following the completion of the sale, the senior vice president now owns 76,037 shares of the company’s stock, valued at $8,878,840.49. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, EVP Mehmood Khan sold 63,396 shares of the company’s stock in a transaction dated Monday, July 24th. The shares were sold at an average price of $116.39, for a total transaction of $7,378,660.44. Following the completion of the sale, the executive vice president now directly owns 174,273 shares of the company’s stock, valued at approximately $20,283,634.47. The disclosure for this sale can be found here. Insiders have sold 898,164 shares of company stock valued at $104,585,929 in the last ninety days. Insiders own 0.26% of the company’s stock.
Several large investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its stake in shares of Pepsico by 2.4% in the second quarter. Vanguard Group Inc. now owns 112,083,751 shares of the company’s stock worth $12,944,553,000 after buying an additional 2,635,738 shares in the last quarter. Janus Henderson Group PLC raised its stake in shares of Pepsico by 910.5% in the second quarter. Janus Henderson Group PLC now owns 2,907,923 shares of the company’s stock worth $335,840,000 after buying an additional 2,620,149 shares in the last quarter. Sanders Capital LLC purchased a new stake in shares of Pepsico during the first quarter worth about $254,277,000. Harbour Capital Advisors LLC raised its stake in shares of Pepsico by 11,316.2% in the second quarter. Harbour Capital Advisors LLC now owns 2,183,685 shares of the company’s stock worth $18,908,000 after buying an additional 2,164,557 shares in the last quarter. Finally, Canada Pension Plan Investment Board raised its stake in shares of Pepsico by 92.5% in the first quarter. Canada Pension Plan Investment Board now owns 3,317,230 shares of the company’s stock worth $371,065,000 after buying an additional 1,593,550 shares in the last quarter. 70.15% of the stock is owned by hedge funds and other institutional investors.
PepsiCo, Inc is a global food and beverage company. The Company’s portfolio of brands includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. The Company operates through six segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA), and Asia, Middle East and North Africa (AMENA).
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