PepsiCo (NASDAQ:PEP) Shares Up 0.4% Following Strong Earnings

PepsiCo, Inc. (NASDAQ:PEP) shares shot up 0.4% on Wednesday following a stronger than expected earnings report. The company traded as high as $171.60 and last traded at $171.17. 1,299,933 shares traded hands during trading, a decline of 76% from the average session volume of 5,485,505 shares. The stock had previously closed at $170.42.

The company reported $2.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.30 by $0.01. The business had revenue of $23.32 billion during the quarter, compared to analysts’ expectations of $23.86 billion. PepsiCo had a return on equity of 57.37% and a net margin of 10.34%. The firm’s revenue for the quarter was down .6% compared to the same quarter last year. During the same period in the previous year, the business posted $2.25 earnings per share.

PepsiCo Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 30th. Shareholders of record on Friday, September 6th were issued a dividend of $1.355 per share. This represents a $5.42 annualized dividend and a yield of 3.17%. The ex-dividend date was Friday, September 6th. PepsiCo’s dividend payout ratio is 78.66%.

Wall Street Analysts Forecast Growth

PEP has been the topic of several recent research reports. Wells Fargo & Company reduced their target price on shares of PepsiCo from $175.00 to $170.00 and set an “equal weight” rating on the stock in a research note on Wednesday, July 10th. StockNews.com cut shares of PepsiCo from a “buy” rating to a “hold” rating in a research report on Friday, September 20th. Barclays decreased their price objective on PepsiCo from $187.00 to $186.00 and set an “overweight” rating for the company in a research note on Friday, October 4th. Royal Bank of Canada reduced their target price on PepsiCo from $177.00 to $176.00 and set a “sector perform” rating on the stock in a report on Friday, October 4th. Finally, DZ Bank lowered shares of PepsiCo from a “buy” rating to a “hold” rating and set a $183.00 price objective on the stock. in a research note on Friday, July 19th. Nine investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average price target of $185.29.

Institutional Trading of PepsiCo

Hedge funds and other institutional investors have recently modified their holdings of the company. MGO One Seven LLC increased its stake in PepsiCo by 46.7% in the 4th quarter. MGO One Seven LLC now owns 25,508 shares of the company’s stock valued at $4,332,000 after buying an additional 8,115 shares during the last quarter. Northwest Wealth Management LLC boosted its position in PepsiCo by 3.9% during the fourth quarter. Northwest Wealth Management LLC now owns 2,980 shares of the company’s stock valued at $506,000 after purchasing an additional 111 shares during the last quarter. Vista Investment Management grew its stake in PepsiCo by 7.1% in the fourth quarter. Vista Investment Management now owns 11,186 shares of the company’s stock valued at $1,900,000 after purchasing an additional 741 shares in the last quarter. Jacobi Capital Management LLC raised its stake in shares of PepsiCo by 210.7% during the 4th quarter. Jacobi Capital Management LLC now owns 53,349 shares of the company’s stock worth $9,061,000 after purchasing an additional 36,176 shares in the last quarter. Finally, First Financial Bankshares Inc acquired a new stake in shares of PepsiCo in the 4th quarter valued at approximately $66,011,000. Institutional investors and hedge funds own 73.07% of the company’s stock.

PepsiCo Stock Up 0.4 %

The company has a debt-to-equity ratio of 1.87, a current ratio of 0.83 and a quick ratio of 0.64. The firm’s 50 day moving average is $173.63 and its two-hundred day moving average is $172.06. The firm has a market capitalization of $235.32 billion, a P/E ratio of 24.84, a PEG ratio of 3.07 and a beta of 0.53.

About PepsiCo

PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.