PepsiCo (NASDAQ:PEP) Shares Gap Up - Time to Buy?

Key Points

• PepsiCo's share price experienced a significant jump, opening at $157.44 after closing at $148.65, with a last trade price of $152.75.
• Analyst ratings reflect mixed views on the stock, with updates showing target prices ranging from $139.00 to $165.00, and a consensus rating of "Hold".
• The company announced a quarterly dividend of $1.4225 per share, resulting in an annual yield of 3.7%, despite having a high payout ratio of 103.64%.

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report)'s share price gapped up prior to trading on Tuesday . The stock had previously closed at $148.65, but opened at $157.44. PepsiCo shares last traded at $152.75, with a volume of 6,423,468 shares changing hands.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Morgan Stanley increased their target price on shares of PepsiCo from $153.00 to $165.00 and gave the company an "equal weight" rating in a report on Friday, July 18th. Wells Fargo & Company increased their target price on shares of PepsiCo from $140.00 to $154.00 and gave the company an "equal weight" rating in a report on Friday, July 18th. Bank of America dropped their target price on shares of PepsiCo from $150.00 to $145.00 and set a "neutral" rating for the company in a report on Friday, July 11th. JPMorgan Chase & Co. dropped their target price on shares of PepsiCo from $150.00 to $139.00 and set a "neutral" rating for the company in a report on Thursday, July 10th. Finally, Cowen reaffirmed a "hold" rating on shares of PepsiCo in a report on Thursday, July 17th. Four analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $158.73.

PepsiCo Price Performance

The stock has a market capitalization of $207.74 billion, a PE ratio of 27.66, a PEG ratio of 3.96 and a beta of 0.46. The company has a current ratio of 0.78, a quick ratio of 0.60 and a debt-to-equity ratio of 2.12. The company's 50 day simple moving average is $141.52 and its 200 day simple moving average is $140.74.

PepsiCo (NASDAQ:PEP - Get Free Report) last released its earnings results 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 analysts' expectations of $22.28 billion. PepsiCo had a net margin of 8.23% and a return on equity of 57.81%. PepsiCo's revenue for the quarter was up 1.0% on a year-over-year basis. During the same period in the previous year, the company earned $2.28 EPS. PepsiCo has set its FY 2025 guidance at 8.038-8.038 EPS. On average, equities analysts anticipate that PepsiCo, Inc. will post 8.3 earnings per share for the current year.

PepsiCo Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Friday, September 5th will be paid a $1.4225 dividend. This represents a $5.69 annualized dividend and a yield of 3.7%. The ex-dividend date of this dividend is Friday, September 5th. PepsiCo's payout ratio is presently 103.64%.

Institutional Trading of PepsiCo

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Nova Wealth Management Inc. acquired a new position in shares of PepsiCo in the 1st quarter valued at $25,000. Evolution Wealth Management Inc. acquired a new position in shares of PepsiCo in the 2nd quarter valued at $27,000. Elite Financial Inc. acquired a new position in shares of PepsiCo in the 1st quarter valued at $28,000. Legend Financial Advisors Inc. acquired a new position in shares of PepsiCo in the 2nd quarter valued at $29,000. Finally, Measured Risk Portfolios Inc. acquired a new position in shares of PepsiCo during the 4th quarter valued at $31,000. 73.07% of the stock is owned by hedge funds and other institutional investors.

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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