PepsiCo, Inc. (NASDAQ:PEP) Given Average Rating of "Hold" by Brokerages

Key Points

• PepsiCo has a consensus analyst rating of "Hold" from 20 analysts, with an average 12-month price target of $165. The breakdown includes one sell, 11 hold, and eight buy ratings.
• The company recently raised its quarterly dividend to $1.48 per share from $1.42, putting the annualized payout at $5.92 and the yield at about 4.1%.
• PepsiCo also posted better-than-expected quarterly results, with EPS of $1.61 and revenue of $19.44 billion, both above analyst estimates. Revenue rose 8.5% year over year.

Shares of PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) have received a consensus rating of "Hold" from the twenty analysts that are currently covering the company, Marketbeat Ratings reports. One research analyst has rated the stock with a sell rating, eleven have issued a hold rating and eight have issued a buy rating on the company. The average 12-month price objective among analysts that have updated their coverage on the stock in the last year is $165.00.

A number of equities analysts have commented on PEP shares. Rothschild & Co Redburn lifted their target price on shares of PepsiCo from $130.00 to $132.00 in a research note on Monday, May 11th. Piper Sandler cut their price target on shares of PepsiCo from $181.00 to $178.00 and set an "overweight" rating for the company in a report on Friday, June 12th. Bank of America reduced their price target on shares of PepsiCo from $173.00 to $164.00 and set a "neutral" rating on the stock in a research report on Thursday, June 25th. Deutsche Bank Aktiengesellschaft decreased their price objective on PepsiCo from $173.00 to $168.00 and set a "buy" rating on the stock in a report on Thursday, June 18th. Finally, UBS Group cut their target price on PepsiCo from $186.00 to $172.00 and set a "buy" rating for the company in a research note on Thursday.

Key Stories Impacting PepsiCo

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: UBS said defensive dividend names like PepsiCo could be ready for a comeback as investors look beyond the tech-led rally, which may help support demand for the stock. Article
• Positive Sentiment: PepsiCo continues to be viewed as a high-quality dividend stock, with recent commentary highlighting it as an attractive dividend aristocrat and a stable defensive holding. Article
• Positive Sentiment: The company also announced a management promotion in Eastern Europe, which signals continued operational execution and regional leadership continuity. Article

PepsiCo Stock Performance

NASDAQ PEP opened at $144.22 on Friday. The company has a debt-to-equity ratio of 1.98, a quick ratio of 0.72 and a current ratio of 0.90. The stock's fifty day moving average is $146.83 and its two-hundred day moving average is $151.76. The firm has a market capitalization of $197.12 billion, a P/E ratio of 22.64, a price-to-earnings-growth ratio of 2.91 and a beta of 0.36. PepsiCo has a fifty-two week low of $132.96 and a fifty-two week high of $171.48.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings results on Wednesday, April 15th. The company reported $1.61 EPS for the quarter, topping the consensus estimate of $1.55 by $0.06. PepsiCo had a return on equity of 56.61% and a net margin of 9.15%.The business had revenue of $19.44 billion for the quarter, compared to analyst estimates of $18.89 billion. During the same quarter in the previous year, the firm earned $1.48 EPS. The company's quarterly revenue was up 8.5% compared to the same quarter last year. On average, research analysts anticipate that PepsiCo will post 8.62 earnings per share for the current year.

PepsiCo Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Friday, June 5th were issued a $1.48 dividend. This is an increase from PepsiCo's previous quarterly dividend of $1.42. The ex-dividend date was Friday, June 5th. This represents a $5.92 annualized dividend and a yield of 4.1%. PepsiCo's payout ratio is presently 92.94%.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of PEP. Vanguard Group Inc. raised its position in PepsiCo by 1.2% in the fourth quarter. Vanguard Group Inc. now owns 138,483,870 shares of the company's stock valued at $19,875,205,000 after purchasing an additional 1,612,652 shares during the period. State Street Corp grew its stake in shares of PepsiCo by 1.8% in the third quarter. State Street Corp now owns 59,499,819 shares of the company's stock valued at $8,356,155,000 after buying an additional 1,079,970 shares in the last quarter. Auto Owners Insurance Co raised its holdings in shares of PepsiCo by 14,857.8% in the 4th quarter. Auto Owners Insurance Co now owns 49,252,907 shares of the company's stock valued at $7,068,777,000 after buying an additional 48,923,629 shares during the period. Geode Capital Management LLC lifted its stake in PepsiCo by 1.1% during the 4th quarter. Geode Capital Management LLC now owns 33,617,937 shares of the company's stock worth $4,814,835,000 after acquiring an additional 360,936 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its stake in PepsiCo by 1.1% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 28,090,426 shares of the company's stock worth $4,031,646,000 after acquiring an additional 295,955 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company's stock.

PepsiCo Company Profile

PepsiCo, Inc NASDAQ: PEP is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay's, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.

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