PepsiCo (NASDAQ:PEP) Shares Down 5.2% After Analyst Downgrade

Key Points

• PepsiCo shares fell 5.2% after BNP Paribas Exane cut its price target from $195 to $183, even though it kept an outperform rating. The stock traded as low as $134.69, well below its prior close of $142.51.
• PepsiCo recently beat quarterly expectations, reporting $2.20 EPS on revenue of $24.18 billion, both slightly above analyst estimates. Revenue rose 6.4% year over year, helped by strong international demand offsetting weaker North American sales.
• The company also raised its quarterly dividend to $1.48 per share from $1.42, putting the annualized payout at $5.92 and the dividend yield at 4.4%. Analysts currently have a consensus rating of Hold with a consensus price target of $164.40.

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report)'s stock price was down 5.2% during trading on Thursday after BNP Paribas Exane lowered their price target on the stock from $195.00 to $183.00. BNP Paribas Exane currently has an outperform rating on the stock. PepsiCo traded as low as $134.69 and last traded at $135.0620. Approximately 2,742,789 shares traded hands during trading, a decline of 65% from the average session volume of 7,825,453 shares. The stock had previously closed at $142.51.

Several other brokerages also recently issued reports on PEP. Barclays reduced their price objective on PepsiCo from $158.00 to $144.00 and set an "equal weight" rating on the stock in a research report on Thursday, July 2nd. Piper Sandler cut their target price on shares of PepsiCo from $181.00 to $178.00 and set an "overweight" rating for the company in a research note on Friday, June 12th. Rothschild & Co Redburn raised their price target on shares of PepsiCo from $130.00 to $132.00 in a research note on Monday, May 11th. Weiss Ratings reissued a "hold (c)" rating on shares of PepsiCo in a research report on Monday. Finally, HSBC upped their price objective on shares of PepsiCo from $175.00 to $176.00 and gave the company a "hold" rating in a research note on Friday, April 17th. Eight equities research analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, PepsiCo presently has a consensus rating of "Hold" and a consensus price target of $164.40.

Key PepsiCo News

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo beat revenue expectations, with global demand and international markets offsetting weaker North American sales. 5 Things to Know Before the Stock Market Opens on Thursday
• Positive Sentiment: Investors appear to be rewarding signs that PepsiCo’s turnaround efforts, including pricing actions and product changes, are helping stabilize performance. PepsiCo Stock Rises After Earnings Beat as Turnaround Plan Takes Hold

Institutional Investors Weigh In On PepsiCo

A number of institutional investors have recently bought and sold shares of PEP. Great Waters Wealth Management boosted its holdings in PepsiCo by 7.1% in the second quarter. Great Waters Wealth Management now owns 3,040 shares of the company's stock valued at $412,000 after acquiring an additional 202 shares during the last quarter. Wealth Science Advisors LLC raised its holdings in shares of PepsiCo by 18.7% in the 2nd quarter. Wealth Science Advisors LLC now owns 2,295 shares of the company's stock worth $311,000 after purchasing an additional 362 shares during the period. HF Advisory Group LLC lifted its stake in shares of PepsiCo by 9.4% in the 2nd quarter. HF Advisory Group LLC now owns 25,846 shares of the company's stock valued at $3,499,000 after purchasing an additional 2,229 shares in the last quarter. Adamsbrown Wealth Consultants LLC grew its holdings in shares of PepsiCo by 58.2% during the 2nd quarter. Adamsbrown Wealth Consultants LLC now owns 4,842 shares of the company's stock worth $656,000 after purchasing an additional 1,782 shares during the period. Finally, Hennion & Walsh Asset Management Inc. grew its holdings in shares of PepsiCo by 3.0% during the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 13,711 shares of the company's stock worth $1,856,000 after purchasing an additional 398 shares during the period. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

PepsiCo Stock Performance

The stock has a market cap of $185.71 billion, a price-to-earnings ratio of 21.29, a P/E/G ratio of 2.92 and a beta of 0.36. The company has a current ratio of 0.90, a quick ratio of 0.72 and a debt-to-equity ratio of 1.98. The stock's 50-day moving average is $146.14 and its 200-day moving average is $151.63.

PepsiCo (NASDAQ:PEP - Get Free Report) last issued its earnings results on Wednesday, July 8th. The company reported $2.20 EPS for the quarter, beating analysts' consensus estimates of $2.19 by $0.01. PepsiCo had a net margin of 9.15% and a return on equity of 56.61%. The business had revenue of $24.18 billion for the quarter, compared to the consensus estimate of $23.95 billion. During the same quarter last year, the firm posted $0.92 EPS. The business's revenue for the quarter was up 6.4% compared to the same quarter last year. On average, analysts expect that PepsiCo, Inc. will post 8.62 EPS for the current year.

PepsiCo Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Friday, June 5th were paid a dividend of $1.48 per share. This is a boost from PepsiCo's previous quarterly dividend of $1.42. This represents a $5.92 dividend on an annualized basis and a dividend yield of 4.4%. The ex-dividend date was Friday, June 5th. PepsiCo's payout ratio is presently 92.94%.

About PepsiCo

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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