PepsiCo (NASDAQ:PEP) Shares Down 2.5% - Here's What Happened

Key Points

• PepsiCo's stock price fell 2.5% to $139.28, with trading volume down 83% compared to the average, indicating a significant shift in market interest.
• Analysts have set mixed price targets for PepsiCo, with the average target reaching $158.73 and the majority rating the stock as a "Hold".
• The company recently reported earnings of $2.12 per share, exceeding expectations, while also declaring a quarterly dividend of $1.4225.

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report) shares fell 2.5% during trading on Thursday . The company traded as low as $140.39 and last traded at $139.28. 1,490,894 shares changed hands during mid-day trading, a decline of 83% from the average session volume of 8,529,770 shares. The stock had previously closed at $142.86.

Analyst Upgrades and Downgrades

Several research analysts have commented on PEP shares. JPMorgan Chase & Co. cut their target price on PepsiCo from $150.00 to $139.00 and set a "neutral" rating on the stock in a report on Thursday, July 10th. Royal Bank Of Canada reaffirmed a "sector perform" rating and set a $148.00 target price on shares of PepsiCo in a report on Tuesday, June 24th. Morgan Stanley lifted their target price on PepsiCo from $153.00 to $165.00 and gave the stock an "equal weight" rating in a report on Friday, July 18th. Cowen reaffirmed a "hold" rating on shares of PepsiCo in a report on Thursday, July 17th. Finally, Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating on shares of PepsiCo in a report on Thursday, July 17th. One analyst has rated the stock with a sell rating, fifteen have assigned a hold rating and four have given a buy rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of "Hold" and a consensus price target of $158.73.

PepsiCo Trading Up 1.2%

The business has a 50 day moving average of $134.43 and a two-hundred day moving average of $140.93. 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 firm has a market capitalization of $191.05 billion, a price-to-earnings ratio of 25.41, a P/E/G ratio of 3.81 and a beta of 0.45.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings results on Thursday, July 17th. The company reported $2.12 earnings per share for the quarter, topping analysts' consensus estimates of $2.03 by $0.09. PepsiCo had a return on equity of 57.81% and a net margin of 8.23%. The business had revenue of $22.73 billion for the quarter, compared to the consensus estimate of $22.28 billion. During the same period in the prior year, the business earned $2.28 EPS. The firm's revenue for the quarter was up 1.0% on a year-over-year basis. Equities analysts predict that PepsiCo, Inc. will post 8.3 EPS for the current year.

PepsiCo Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Shareholders of record on Friday, September 5th will be issued a dividend of $1.4225 per share. This represents a $5.69 dividend on an annualized basis and a yield of 4.1%. The ex-dividend date of this dividend is Friday, September 5th. PepsiCo's payout ratio is currently 103.64%.

Institutional Trading of PepsiCo

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Y Intercept Hong Kong Ltd increased its holdings in PepsiCo by 550.9% during the 2nd quarter. Y Intercept Hong Kong Ltd now owns 101,451 shares of the company's stock worth $13,396,000 after purchasing an additional 85,865 shares in the last quarter. Cobblestone Capital Advisors LLC NY increased its holdings in PepsiCo by 1.7% during the 2nd quarter. Cobblestone Capital Advisors LLC NY now owns 116,005 shares of the company's stock worth $15,317,000 after purchasing an additional 1,948 shares in the last quarter. Banco Santander S.A. increased its holdings in PepsiCo by 507.0% during the 2nd quarter. Banco Santander S.A. now owns 93,225 shares of the company's stock worth $12,309,000 after purchasing an additional 77,867 shares in the last quarter. OVERSEA CHINESE BANKING Corp Ltd increased its holdings in PepsiCo by 158.4% during the 2nd quarter. OVERSEA CHINESE BANKING Corp Ltd now owns 66,426 shares of the company's stock worth $8,527,000 after purchasing an additional 40,716 shares in the last quarter. Finally, MorganRosel Wealth Management LLC increased its holdings in PepsiCo by 23.8% during the 2nd quarter. MorganRosel Wealth Management LLC now owns 453 shares of the company's stock worth $60,000 after purchasing an additional 87 shares in the last quarter. 73.07% of the stock is owned by 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.