Zacks Investment Research Downgrades PepsiCo Inc. (PEP) to Hold
According to Zacks, “Pepsi has been doing well on the back of significant innovation, revenue management strategies, improved productivity and better market execution. Moreover, Pepsi has been seeing higher volumes and profits in the North American segments due to an improving economy, better industry pricing dynamics and a consistency in positive innovation. We believe that Pepsi’s new product lineup, aggressive marketing efforts, productivity improvement and cost-saving initiatives should drive profits. Pepsi rolled out several products recently which management believes will drive sales and profits in the remainder of 2016. It has recently agreed to acquire a sparkling probiotic U.S. drinks company KeVita amid slowing soda sales. Growing health awareness has been hurting the CSD category and increasing currency headwind may dampen growth, going forward.”
A number of other brokerages have also issued reports on PEP. Sanford C. Bernstein reissued an outperform rating and issued a $118.00 price objective on shares of PepsiCo in a report on Wednesday, August 10th. Morgan Stanley reissued an overweight rating and issued a $121.00 price objective on shares of PepsiCo in a report on Friday, September 30th. reissued an outperform rating on shares of PepsiCo in a report on Monday, August 22nd. Bank of America Corp. reissued a buy rating and issued a $120.00 price objective on shares of PepsiCo in a report on Thursday, September 22nd. Finally, Vetr raised shares of PepsiCo from a hold rating to a buy rating and set a $112.11 price objective for the company in a report on Wednesday, September 7th. Eight equities research analysts have rated the stock with a hold rating, thirteen have given a buy rating and one has given a strong buy rating to the company’s stock. The company has a consensus rating of Buy and an average price target of $113.71.
Shares of PepsiCo (NYSE:PEP) opened at 101.7875 on Thursday. PepsiCo has a 12-month low of $93.25 and a 12-month high of $110.94. The stock has a 50 day moving average of $105.09 and a 200 day moving average of $105.80. The company has a market cap of $145.98 billion, a price-to-earnings ratio of 22.3316 and a beta of 0.54.
PepsiCo (NYSE:PEP) last announced its quarterly earnings data on Thursday, September 29th. The company reported $1.40 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.32 by $0.08. PepsiCo had a net margin of 10.74% and a return on equity of 56.16%. The firm earned $16 billion during the quarter. During the same period in the prior year, the company posted $1.35 EPS. The company’s revenue for the quarter was down 1.9% compared to the same quarter last year. Analysts forecast that PepsiCo will post $4.81 earnings per share for the current year.
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The firm also recently disclosed a quarterly dividend, which will be paid on Friday, January 6th. Stockholders of record on Friday, December 2nd will be paid a $0.7525 dividend. This represents a $3.01 annualized dividend and a dividend yield of 2.94%. The ex-dividend date of this dividend is Wednesday, November 30th. PepsiCo’s payout ratio is 66.01%.
Several hedge funds and other institutional investors have recently bought and sold shares of PEP. Cutler Investment Counsel LLC raised its position in PepsiCo by 0.7% in the third quarter. Cutler Investment Counsel LLC now owns 66,934 shares of the company’s stock valued at $7,280,000 after buying an additional 489 shares during the last quarter. SevenBridge Financial Group LLC raised its position in PepsiCo by 25.0% in the third quarter. SevenBridge Financial Group LLC now owns 28,571 shares of the company’s stock valued at $3,026,000 after buying an additional 5,721 shares during the last quarter. First Heartland Consultants Inc. raised its position in PepsiCo by 10.4% in the third quarter. First Heartland Consultants Inc. now owns 3,887 shares of the company’s stock valued at $423,000 after buying an additional 367 shares during the last quarter. Accident Compensation Corp raised its position in PepsiCo by 3.0% in the third quarter. Accident Compensation Corp now owns 69,600 shares of the company’s stock valued at $7,570,000 after buying an additional 2,000 shares during the last quarter. Finally, Itau Unibanco Holding S.A. acquired a new position in PepsiCo during the third quarter valued at approximately $101,000. 69.19% of the stock is owned by institutional investors and hedge funds.
PepsiCo Company Profile
PepsiCo, Inc is a food and beverage company. The Company, through its operations, bottlers, contract manufacturers and other third parties, is engaged in making, marketing, distributing and selling a range of beverages, foods and snacks, serving in over 200 countries and territories. The Company operates through six segments, namely, Frito-Lay North America (FLNA); Quaker Foods North America (QFNA); North America Beverages (NAB); Latin America, which includes its beverage, food and snack businesses in Latin America; Europe Sub-Saharan Africa (ESSA), which includes its beverage, food and snack businesses in Europe and Sub-Saharan Africa, and Asia, Middle East and North Africa (AMENA), which includes its beverage, food and snack businesses in Asia, Middle East and North Africa.
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