Zacks Investment Research cut shares of Pepsico (NYSE:PEP) from a buy rating to a hold rating in a report published on Tuesday morning.
According to Zacks, “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. Moreover, an improving economy, better industry pricing dynamics and a consistency in positive innovation bode well. It rolled out several products recently which management believes will drive sales and profits in 2017. Meanwhile, PepsiCo's shares outperformed its industry in the last three months. That said, growing health awareness has been hurting the CSD category, resulting in a 4% volume decline in the first nine months of 2017 in North America. Again, rising volatility in global markets and increasing currency headwinds may dampen growth.”
A number of other brokerages have also weighed in on PEP. BidaskClub upgraded Pepsico from a hold rating to a buy rating in a report on Thursday, August 17th. Credit Suisse Group lowered Pepsico from an outperform rating to a neutral rating and reduced their price target for the stock from $126.00 to $124.00 in a report on Friday, September 8th. Royal Bank Of Canada restated a hold rating and issued a $115.00 price objective on shares of Pepsico in a report on Wednesday, September 6th. BMO Capital Markets restated a hold rating and issued a $120.00 price objective on shares of Pepsico in a report on Wednesday, September 6th. Finally, Cowen reaffirmed a buy rating on shares of Pepsico in a research report on Sunday, September 17th. Eight research analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has assigned a strong buy rating to the company. The stock currently has a consensus rating of Buy and a consensus price target of $121.96.
Pepsico (NYSE:PEP) last posted its quarterly earnings results on Wednesday, October 4th. The company reported $1.48 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.43 by $0.05. The company had revenue of $16.24 billion during the quarter, compared to analyst estimates of $16.35 billion. Pepsico had a net margin of 10.97% and a return on equity of 59.68%. Pepsico’s revenue for the quarter was up 1.3% compared to the same quarter last year. During the same period last year, the firm posted $1.40 EPS. sell-side analysts expect that Pepsico will post 5.22 EPS for the current year.
The company also recently announced a quarterly dividend, which will be paid on Monday, January 8th. Shareholders of record on Friday, December 1st will be issued a $0.805 dividend. This represents a $3.22 annualized dividend and a yield of 2.74%. The ex-dividend date is Thursday, November 30th. Pepsico’s dividend payout ratio (DPR) is 66.53%.
In related news, insider Ramon Laguarta sold 21,449 shares of the stock in a transaction on Tuesday, October 10th. The stock was sold at an average price of $110.51, for a total transaction of $2,370,328.99. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.26% of the stock is owned by company insiders.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Barnett & Company Inc. raised its stake in Pepsico by 270.4% during the 2nd quarter. Barnett & Company Inc. now owns 900 shares of the company’s stock valued at $104,000 after acquiring an additional 657 shares in the last quarter. Aviance Capital Management LLC acquired a new position in shares of Pepsico in the 2nd quarter worth $111,000. Legacy Advisors LLC acquired a new position in shares of Pepsico in the 3rd quarter worth $115,000. Asset Planning Services Ltd. grew its holdings in shares of Pepsico by 0.3% during the second quarter. Asset Planning Services Ltd. now owns 1,006 shares of the company’s stock valued at $116,000 after buying an additional 3 shares in the last quarter. Finally, Patriot Financial Group Insurance Agency LLC grew its holdings in shares of Pepsico by 5.9% during the second quarter. Patriot Financial Group Insurance Agency LLC now owns 1,211 shares of the company’s stock valued at $138,000 after buying an additional 67 shares in the last quarter. Hedge funds and other institutional investors own 70.50% of the company’s stock.
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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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