PepsiCo (NASDAQ:PEP) Stock Price Down 2.9% Following Weak Earnings

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) shares fell 2.9% during trading on Thursday following a weaker than expected earnings announcement. The stock traded as low as $137.41 and last traded at $138.17. 3,709,326 shares traded hands during mid-day trading, a decline of 39% from the average session volume of 6,099,176 shares. The stock had previously closed at $142.26.

The company reported $1.48 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $1.49 by ($0.01). The company had revenue of $17.92 billion for the quarter, compared to analysts' expectations of $17.81 billion. PepsiCo had a net margin of 10.43% and a return on equity of 58.87%. The firm's quarterly revenue was down 1.8% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.61 EPS.

PepsiCo Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Investors of record on Friday, March 7th were given a dividend of $1.355 per share. The ex-dividend date was Friday, March 7th. This represents a $5.42 dividend on an annualized basis and a yield of 4.05%. PepsiCo's dividend payout ratio (DPR) is 77.99%.

Analyst Ratings Changes

Several analysts have issued reports on the company. Bank of America cut their price target on PepsiCo from $155.00 to $150.00 and set a "neutral" rating for the company in a report on Friday. HSBC lowered their price target on shares of PepsiCo from $186.00 to $170.00 and set a "hold" rating on the stock in a report on Tuesday, February 4th. Royal Bank of Canada restated a "sector perform" rating and set a $163.00 price objective on shares of PepsiCo in a research report on Tuesday, April 22nd. Evercore ISI set a $140.00 price target on PepsiCo in a research note on Thursday. Finally, TD Cowen lowered their price objective on PepsiCo from $183.00 to $160.00 and set a "hold" rating on the stock in a research report on Wednesday, January 8th. One investment analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and four have given a buy rating to the stock. According to MarketBeat.com, PepsiCo has a consensus rating of "Hold" and a consensus price target of $160.69.

Institutional Trading of PepsiCo

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Vanguard Group Inc. boosted its holdings in PepsiCo by 1.0% in the fourth quarter. Vanguard Group Inc. now owns 133,371,504 shares of the company's stock worth $20,280,471,000 after acquiring an additional 1,376,133 shares in the last quarter. Geode Capital Management LLC increased its stake in PepsiCo by 1.9% during the 4th quarter. Geode Capital Management LLC now owns 31,079,522 shares of the company's stock valued at $4,717,069,000 after purchasing an additional 582,254 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its stake in shares of PepsiCo by 18.1% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 25,217,043 shares of the company's stock worth $3,834,504,000 after buying an additional 3,856,193 shares during the period. Norges Bank acquired a new position in shares of PepsiCo in the 4th quarter valued at $2,729,565,000. Finally, Northern Trust Corp raised its stake in PepsiCo by 8.7% in the 4th quarter. Northern Trust Corp now owns 16,403,395 shares of the company's stock worth $2,494,300,000 after acquiring an additional 1,306,818 shares during the last quarter. Hedge funds and other institutional investors own 73.07% of the company's stock.

PepsiCo Trading Up 0.3 %

The firm has a market cap of $183.43 billion, a PE ratio of 19.25, a P/E/G ratio of 3.09 and a beta of 0.49. The company has a debt-to-equity ratio of 2.05, a quick ratio of 0.65 and a current ratio of 0.82. The company has a 50 day simple moving average of $147.70 and a two-hundred day simple moving average of $153.66.

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.