Pepsico, Inc. (PEP) Raised to Buy at Zacks Investment Research
Pepsico, Inc. (NYSE:PEP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Tuesday. The firm currently has a $122.00 price objective on the stock. Zacks Investment Research‘s price objective would indicate a potential upside of 11.80% from the company’s previous close.
According to Zacks, “PepsiCo 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, PepsiCo shares underperformed the industry to which it belongs year to date.”
PEP has been the topic of several other reports. BMO Capital Markets downgraded shares of Pepsico from an “outperform” rating to a “market perform” rating and lifted their target price for the stock from $118.00 to $120.00 in a research note on Wednesday, June 7th. They noted that the move was a valuation call. Cowen and Company reissued an “outperform” rating and set a $128.00 price target on shares of Pepsico in a research report on Thursday, July 13th. Susquehanna Bancshares Inc reissued a “buy” rating and set a $135.00 price target on shares of Pepsico in a research report on Monday. Jefferies Group LLC reissued a “buy” rating and issued a $133.00 price target (up previously from $130.00) on shares of Pepsico in a report on Wednesday, July 12th. Finally, J P Morgan Chase & Co reissued an “overweight” rating on shares of Pepsico in a report on Wednesday, July 12th. Seven research analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company’s stock. Pepsico presently has a consensus rating of “Buy” and an average target price of $121.71.
Pepsico (NYSE PEP) traded down 0.03% during midday trading on Tuesday, hitting $109.09. 3,165,449 shares of the stock traded hands. The stock’s 50-day moving average price is $115.11 and its 200 day moving average price is $114.82. Pepsico has a 52 week low of $98.50 and a 52 week high of $119.39. The company has a market capitalization of $155.51 billion, a price-to-earnings ratio of 23.10 and a beta of 0.68. Pepsico also was the target of unusually large options trading on Monday. Traders purchased 5,616 put options on the stock. This represents an increase of 248% compared to the typical daily volume of 1,616 put options.
Pepsico (NYSE:PEP) last announced its quarterly earnings results on Tuesday, July 11th. The company reported $1.50 EPS for the quarter, topping the Zacks’ consensus estimate of $1.40 by $0.10. The business had revenue of $15.71 billion for the quarter, compared to analysts’ expectations of $15.57 billion. Pepsico had a return on equity of 59.74% and a net margin of 10.77%. The business’s quarterly revenue was up 2.0% on a year-over-year basis. During the same period in the previous year, the firm earned $1.35 EPS. On average, equities research analysts predict that Pepsico will post $5.16 EPS for the current year.
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In other news, EVP Mehmood Khan sold 63,396 shares of the business’s stock in a transaction that occurred on 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 transaction, the executive vice president now directly owns 174,273 shares of the company’s stock, valued at $20,283,634.47. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, SVP Marie T. Gallagher sold 41,489 shares of the business’s stock in a transaction that occurred on Monday, August 7th. The shares were sold at an average price of $116.77, for a total transaction of $4,844,670.53. Following the transaction, the senior vice president now directly owns 76,037 shares of the company’s stock, valued at $8,878,840.49. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 898,164 shares of company stock worth $104,585,929. Corporate insiders own 0.26% of the company’s stock.
A number of institutional investors have recently modified their holdings of the stock. Asset Planning Services Ltd. raised its stake in Pepsico by 0.3% during the 2nd quarter. Asset Planning Services Ltd. now owns 1,006 shares of the company’s stock valued at $116,000 after buying an additional 3 shares during the last quarter. Accurate Investment Solutions Inc. lifted its holdings in shares of Pepsico by 0.3% during the 2nd quarter. Accurate Investment Solutions Inc. now owns 1,851 shares of the company’s stock valued at $214,000 after buying an additional 5 shares during the period. Northwest Wealth Management LLC lifted its holdings in shares of Pepsico by 0.4% during the 2nd quarter. Northwest Wealth Management LLC now owns 2,511 shares of the company’s stock valued at $290,000 after buying an additional 11 shares during the period. Sunbelt Securities Inc. lifted its holdings in shares of Pepsico by 0.3% during the 2nd quarter. Sunbelt Securities Inc. now owns 4,682 shares of the company’s stock valued at $541,000 after buying an additional 12 shares during the period. Finally, Willingdon Wealth Management lifted its holdings in shares of Pepsico by 0.3% during the 1st quarter. Willingdon Wealth Management now owns 6,381 shares of the company’s stock valued at $714,000 after buying an additional 16 shares during the period. Institutional investors own 70.06% of the company’s stock.
Pepsico Company Profile
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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