PepsiCo, Inc. (NASDAQ:PEP) Given Consensus Rating of "Hold" by Analysts

Key Points

• PepsiCo has received a consensus rating of "Hold" from 19 analysts, with one sell recommendation, 14 hold recommendations, and four buy recommendations.
• The company's recent quarterly earnings beat expectations, reporting $2.12 EPS and $22.73 billion in revenue, marking a 1.0% increase year-over-year.
• PepsiCo recently announced a quarterly dividend of $1.4225 per share, demonstrating a dividend yield of 4.0% with a payout ratio of 103.64%.

Shares of PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) have been given a consensus recommendation of "Hold" by the nineteen ratings firms that are covering the stock, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, fourteen have given a hold recommendation and four have issued a buy recommendation on the company. The average 12-month price target among brokers that have covered the stock in the last year is $157.8667.

Several analysts have recently commented on PEP shares. Wells Fargo & Company lowered their price objective on PepsiCo from $154.00 to $150.00 and set an "equal weight" rating for the company in a research note on Thursday, September 25th. UBS Group lowered their price objective on PepsiCo from $175.00 to $170.00 and set a "buy" rating for the company in a research note on Thursday, September 11th. Royal Bank Of Canada lowered their price objective on PepsiCo from $146.00 to $145.00 and set a "sector perform" rating for the company in a research note on Monday, September 15th. Citigroup lowered their price objective on PepsiCo from $168.00 to $165.00 and set a "buy" rating for the company in a research note on Thursday, September 25th. Finally, Bank of America reduced their target price on PepsiCo from $150.00 to $145.00 and set a "neutral" rating for the company in a report on Friday, July 11th.

Hedge Funds Weigh In On PepsiCo

Several institutional investors have recently modified their holdings of PEP. Norges Bank bought a new position in shares of PepsiCo in the second quarter valued at approximately $2,330,594,000. Nuveen LLC bought a new position in shares of PepsiCo in the first quarter valued at approximately $946,978,000. Laurel Wealth Advisors LLC grew its holdings in PepsiCo by 14,420.2% during the second quarter. Laurel Wealth Advisors LLC now owns 3,890,688 shares of the company's stock valued at $513,726,000 after purchasing an additional 3,863,893 shares during the period. Kingstone Capital Partners Texas LLC bought a new position in PepsiCo during the second quarter valued at $460,110,000. Finally, Charles Schwab Investment Management Inc. grew its holdings in PepsiCo by 9.7% during the second quarter. Charles Schwab Investment Management Inc. now owns 29,031,404 shares of the company's stock valued at $3,833,406,000 after purchasing an additional 2,556,163 shares during the period. 73.07% of the stock is owned by institutional investors.

PepsiCo Stock Down 0.6%

PEP stock opened at $142.31 on Friday. The stock's 50 day simple moving average is $144.39 and its 200 day simple moving average is $139.50. PepsiCo has a fifty-two week low of $127.60 and a fifty-two week high of $177.50. The company has a debt-to-equity ratio of 2.12, a quick ratio of 0.60 and a current ratio of 0.78. The company has a market cap of $194.83 billion, a P/E ratio of 25.92, a price-to-earnings-growth ratio of 3.61 and a beta of 0.46.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its quarterly earnings data on Thursday, July 17th. The company reported $2.12 EPS for the quarter, topping the consensus estimate of $2.03 by $0.09. The firm had revenue of $22.73 billion during the quarter, compared to the consensus estimate of $22.28 billion. PepsiCo had a return on equity of 57.81% and a net margin of 8.23%.The company's quarterly revenue was up 1.0% compared to the same quarter last year. During the same period in the prior year, the business posted $2.28 earnings per share. PepsiCo has set its FY 2025 guidance at 8.038-8.038 EPS. On average, research analysts expect that PepsiCo will post 8.3 earnings per share for the current fiscal year.

PepsiCo Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Friday, September 5th were issued a $1.4225 dividend. The ex-dividend date of this dividend was Friday, September 5th. This represents a $5.69 annualized dividend and a dividend yield of 4.0%. PepsiCo's dividend payout ratio is currently 103.64%.

About PepsiCo

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.

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