Pepsico, Inc. (NYSE:PEP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Monday, October 30th.
According to Zacks, “PepsiCo reported mixed third-quarter 2017 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Nonetheless, this is the sixth consecutive quarter of positive earnings surprise. On a year-over-year basis, core earnings and revenues grew 6% and 1.3%, respectively. 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. Revenues increased 1.7% on an organic basis, primarily driven by higher demand for beverages/food/snacks in the Asia, Middle East and North Africa, Europe Sub-Saharan Africa and Latin America segments. Total volumes however declined 1% during the quarter against flat growth in the previous quarter. Core gross margins also contracted 15 basis points.”
Other equities analysts have also issued reports about the stock. Susquehanna Bancshares Inc reaffirmed a “positive” rating and issued a $133.00 target price (down from $134.00) on shares of Pepsico in a research note on Thursday, July 6th. Jefferies Group LLC restated a “buy” rating and set a $130.00 price objective (up from $127.00) on shares of Pepsico in a research note on Thursday, July 6th. J P Morgan Chase & Co reaffirmed an “overweight” rating on shares of Pepsico in a report on Wednesday, July 12th. Credit Suisse Group upped their target price on shares of Pepsico from $124.00 to $126.00 and gave the company an “outperform” rating in a report on Wednesday, July 12th. Finally, Cowen and Company reissued an “outperform” rating and issued a $128.00 price target on shares of Pepsico in a report on Thursday, July 13th. Seven investment analysts have rated the stock with a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the company. The stock has a consensus rating of “Buy” and a consensus target price of $121.35.
Pepsico (PEP) traded up $1.27 during mid-day trading on Monday, reaching $112.75. 3,699,400 shares of the company traded hands, compared to its average volume of 3,672,268. The company has a market cap of $158,540.50, a PE ratio of 21.77, a PEG ratio of 3.03 and a beta of 0.66. Pepsico has a 1 year low of $98.50 and a 1 year high of $119.39. The company has a quick ratio of 1.21, a current ratio of 1.35 and a debt-to-equity ratio of 2.32.
Pepsico (NYSE:PEP) last issued its earnings results on Wednesday, October 4th. The company reported $1.48 EPS for the quarter, beating the consensus estimate of $1.43 by $0.05. Pepsico had a net margin of 10.97% and a return on equity of 59.68%. The company had revenue of $16.24 billion during the quarter, compared to analysts’ expectations of $16.35 billion. During the same quarter in the previous year, the company posted $1.40 EPS. The business’s revenue for the quarter was up 1.3% compared to the same quarter last year. equities research analysts anticipate that Pepsico will post 5.22 earnings per share for the current year.
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In other news, insider Ramon Laguarta sold 21,449 shares of Pepsico stock in a transaction dated Tuesday, October 10th. The shares were sold at an average price of $110.51, for a total transaction of $2,370,328.99. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Insiders own 0.26% of the company’s stock.
Several hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. grew its holdings in shares of Pepsico by 2.4% during the second quarter. Vanguard Group Inc. now owns 112,083,751 shares of the company’s stock valued at $12,944,553,000 after buying an additional 2,635,738 shares during the last quarter. Bank of New York Mellon Corp boosted its holdings in Pepsico by 7.3% during the third quarter. Bank of New York Mellon Corp now owns 16,841,076 shares of the company’s stock worth $1,876,600,000 after purchasing an additional 1,148,915 shares during the last quarter. Ameriprise Financial Inc. boosted its holdings in Pepsico by 2.5% during the second quarter. Ameriprise Financial Inc. now owns 12,699,308 shares of the company’s stock worth $1,466,839,000 after purchasing an additional 306,675 shares during the last quarter. FMR LLC boosted its holdings in Pepsico by 8.3% during the second quarter. FMR LLC now owns 8,043,420 shares of the company’s stock worth $928,934,000 after purchasing an additional 618,813 shares during the last quarter. Finally, Schwab Charles Investment Management Inc. boosted its holdings in Pepsico by 3.2% during the second quarter. Schwab Charles Investment Management Inc. now owns 7,781,835 shares of the company’s stock worth $898,725,000 after purchasing an additional 238,221 shares during the last quarter. Hedge funds and other institutional investors own 70.65% of the company’s stock.
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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