PepsiCo (NASDAQ:PEP) Trading 0.7% Higher After Strong Earnings

Shares of PepsiCo, Inc. (NASDAQ:PEP) traded up 0.7% during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $144.35 and last traded at $144.48. 2,125,304 shares traded hands during trading, a decline of 68% from the average session volume of 6,669,610 shares. The stock had previously closed at $143.49.

The company reported $1.96 EPS for the quarter, topping analysts’ consensus estimates of $1.94 by $0.02. PepsiCo had a return on equity of 57.32% and a net margin of 10.18%. The firm had revenue of $27.78 billion for the quarter, compared to the consensus estimate of $27.89 billion. During the same quarter in the prior year, the company posted $1.78 earnings per share. The firm’s revenue was down .2% on a year-over-year basis.

PepsiCo Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, March 31st. Investors of record on Friday, March 7th will be issued a $1.355 dividend. This represents a $5.42 dividend on an annualized basis and a yield of 3.72%. PepsiCo’s dividend payout ratio is currently 79.94%.

Analysts Set New Price Targets

Several brokerages have commented on PEP. Deutsche Bank Aktiengesellschaft lowered their price target on PepsiCo from $184.00 to $178.00 and set a “buy” rating on the stock in a report on Wednesday, January 22nd. TD Cowen lowered their price target on PepsiCo from $183.00 to $160.00 and set a “hold” rating on the stock in a report on Wednesday, January 8th. Evercore ISI lowered their price target on PepsiCo from $180.00 to $160.00 in a report on Tuesday. Hsbc Global Res upgraded PepsiCo to a “hold” rating in a report on Thursday, October 10th. Finally, HSBC lowered their price target on PepsiCo from $186.00 to $170.00 and set a “hold” rating on the stock in a report on Tuesday. One equities research analyst has rated the stock with a sell rating, ten have given a hold rating and nine have issued a buy rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $171.76.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. SRS Capital Advisors Inc. lifted its holdings in shares of PepsiCo by 244.7% during the fourth quarter. SRS Capital Advisors Inc. now owns 16,278 shares of the company’s stock valued at $2,475,000 after acquiring an additional 11,555 shares during the period. Clifford Swan Investment Counsel LLC lifted its holdings in shares of PepsiCo by 4.8% during the fourth quarter. Clifford Swan Investment Counsel LLC now owns 114,381 shares of the company’s stock valued at $17,393,000 after acquiring an additional 5,278 shares during the period. Norden Group LLC lifted its holdings in shares of PepsiCo by 9.5% during the fourth quarter. Norden Group LLC now owns 20,768 shares of the company’s stock valued at $3,158,000 after acquiring an additional 1,805 shares during the period. Hickory Point Bank & Trust bought a new position in shares of PepsiCo in the fourth quarter valued at about $452,000. Finally, Purkiss Capital Advisors LLC bought a new position in shares of PepsiCo in the fourth quarter valued at about $305,000. 73.07% of the stock is owned by institutional investors.

PepsiCo Price Performance

The stock has a fifty day moving average of $152.49 and a 200-day moving average of $164.53. The company has a quick ratio of 0.70, a current ratio of 0.89 and a debt-to-equity ratio of 1.96. The firm has a market capitalization of $199.84 billion, a P/E ratio of 21.48, a PEG ratio of 2.92 and a beta of 0.54.

PepsiCo Company Profile

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.