Zacks Investment Research downgraded shares of Pepsico, Inc. (NYSE:PEP) from a buy rating to a hold rating in a research note released on Monday.
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 research analysts also recently issued research reports about the company. Cowen and Company reissued a buy rating on shares of Pepsico in a report on Sunday, September 17th. Credit Suisse Group downgraded Pepsico from an outperform rating to a neutral rating and reduced their target price for the company from $126.00 to $124.00 in a report on Friday, September 8th. Macquarie assumed coverage on Pepsico in a report on Thursday, September 14th. They issued an outperform rating and a $125.00 target price for the company. BMO Capital Markets reissued a hold rating and issued a $120.00 target price on shares of Pepsico in a report on Wednesday, September 6th. Finally, Royal Bank Of Canada reissued a hold rating and issued a $115.00 target price on shares of Pepsico in a report on Wednesday, September 6th. Eight analysts have rated the stock with a hold rating, nine have given a buy rating and one has given a strong buy rating to the company’s stock. The company currently has a consensus rating of Buy and a consensus target price of $121.35.
Shares of Pepsico (NYSE PEP) traded up 0.57% during midday trading on Monday, reaching $110.27. 1,272,987 shares of the company traded hands. Pepsico has a 1-year low of $98.50 and a 1-year high of $119.39. The stock’s 50-day moving average is $111.97 and its 200-day moving average is $114.69. The stock has a market capitalization of $156.82 billion, a P/E ratio of 22.79 and a beta of 0.68.
Pepsico (NYSE:PEP) last issued its quarterly earnings results on Wednesday, October 4th. The company reported $1.48 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.43 by $0.05. Pepsico had a return on equity of 59.68% and a net margin of 10.97%. The firm had revenue of $16.24 billion during the quarter, compared to the consensus estimate of $16.35 billion. During the same period last year, the company earned $1.40 earnings per share. The company’s revenue for the quarter was up 1.3% on a year-over-year basis. Equities analysts predict that Pepsico will post $5.22 EPS for the current fiscal year.
In other news, SVP Marie T. Gallagher sold 41,489 shares of Pepsico stock in a transaction on Monday, August 7th. The stock was sold at an average price of $116.77, for a total transaction of $4,844,670.53. Following the completion of the transaction, the senior vice president now owns 76,037 shares of the company’s stock, valued at approximately $8,878,840.49. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Ramon Laguarta sold 21,449 shares of Pepsico stock in a transaction on Tuesday, October 10th. The stock was sold at an average price of $110.51, for a total value of $2,370,328.99. The disclosure for this sale can be found here. Insiders own 0.26% of the company’s stock.
Several large investors have recently added to or reduced their stakes in PEP. Vanguard Group Inc. increased its position in Pepsico by 2.4% during the 2nd quarter. Vanguard Group Inc. now owns 112,083,751 shares of the company’s stock worth $12,944,553,000 after purchasing an additional 2,635,738 shares in the last quarter. Ameriprise Financial Inc. increased its position in Pepsico by 2.5% during the 2nd 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 in the last quarter. FMR LLC increased its position in Pepsico by 8.3% during the 2nd 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 in the last quarter. Schwab Charles Investment Management Inc. increased its position in Pepsico by 3.2% during the 2nd 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 in the last quarter. Finally, Alliancebernstein L.P. increased its position in Pepsico by 7.0% during the 2nd quarter. Alliancebernstein L.P. now owns 6,568,054 shares of the company’s stock worth $758,545,000 after purchasing an additional 428,728 shares in the last quarter. 70.53% of the stock is owned by institutional investors and hedge funds.
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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