PepsiCo, Inc. (NASDAQ:PEP) Receives Average Recommendation of “Hold” from Analysts

Shares of PepsiCo, Inc. (NASDAQ:PEP) have earned a consensus recommendation of “Hold” from the sixteen brokerages that are covering the company, MarketBeat Ratings reports. One analyst has rated the stock with a sell recommendation, ten have issued a hold recommendation and five have given a buy recommendation to the company. The average 1-year price objective among brokers that have issued ratings on the stock in the last year is $183.92.

A number of equities analysts have weighed in on the company. Redburn Atlantic raised PepsiCo to a “strong sell” rating in a research report on Thursday, October 10th. Bank of America decreased their target price on PepsiCo from $190.00 to $185.00 and set a “buy” rating for the company in a research report on Monday, September 30th. Morgan Stanley lowered shares of PepsiCo from an “overweight” rating to an “equal weight” rating and set a $185.00 price target for the company. in a research report on Friday, September 20th. Barclays reduced their price target on shares of PepsiCo from $186.00 to $183.00 and set an “overweight” rating for the company in a research report on Thursday, October 10th. Finally, JPMorgan Chase & Co. reduced their price target on shares of PepsiCo from $185.00 to $183.00 and set a “neutral” rating for the company in a research report on Wednesday, October 9th.

PepsiCo Stock Performance

NASDAQ:PEP opened at $157.79 on Friday. The stock has a market cap of $216.49 billion, a P/E ratio of 23.27, a price-to-earnings-growth ratio of 3.01 and a beta of 0.52. The firm’s fifty day simple moving average is $166.83 and its 200 day simple moving average is $169.72. PepsiCo has a twelve month low of $155.85 and a twelve month high of $183.41. The company has a quick ratio of 0.70, a current ratio of 0.89 and a debt-to-equity ratio of 1.96.

PepsiCo (NASDAQ:PEP) last announced its earnings results on Tuesday, October 8th. The company reported $2.31 EPS for the quarter, beating analysts’ consensus estimates of $2.30 by $0.01. PepsiCo had a net margin of 10.18% and a return on equity of 57.32%. The firm had revenue of $23.32 billion for the quarter, compared to analysts’ expectations of $23.86 billion. During the same quarter in the previous year, the business posted $2.25 EPS. The company’s quarterly revenue was down .6% on a year-over-year basis. As a group, research analysts predict that PepsiCo will post 8.15 EPS for the current year.

PepsiCo Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Monday, January 6th. Investors of record on Friday, December 6th will be given a dividend of $1.355 per share. This represents a $5.42 dividend on an annualized basis and a yield of 3.43%. The ex-dividend date is Friday, December 6th. PepsiCo’s payout ratio is currently 79.94%.

Institutional Investors Weigh In On PepsiCo

Several institutional investors have recently added to or reduced their stakes in the business. Global Wealth Strategies & Associates raised its stake in shares of PepsiCo by 59.0% in the third quarter. Global Wealth Strategies & Associates now owns 159 shares of the company’s stock worth $27,000 after purchasing an additional 59 shares during the last quarter. Highline Wealth Partners LLC purchased a new position in PepsiCo during the third quarter valued at approximately $28,000. POM Investment Strategies LLC raised its position in PepsiCo by 141.3% during the second quarter. POM Investment Strategies LLC now owns 181 shares of the company’s stock valued at $30,000 after acquiring an additional 106 shares in the last quarter. Summit Securities Group LLC purchased a new position in PepsiCo during the second quarter valued at approximately $30,000. Finally, Legacy Investment Solutions LLC purchased a new position in PepsiCo during the third quarter valued at approximately $31,000. Institutional investors and hedge funds own 73.07% of the company’s stock.

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.