PepsiCo (NASDAQ:PEP) Trading Down 1.5% - Here's Why

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report)'s share price was down 1.5% during trading on Wednesday . The company traded as low as $133.55 and last traded at $133.02. Approximately 1,980,395 shares traded hands during trading, a decline of 72% from the average daily volume of 7,053,725 shares. The stock had previously closed at $135.04.

Analysts Set New Price Targets

A number of brokerages have issued reports on PEP. Dbs Bank downgraded PepsiCo from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 9th. Jefferies Financial Group cut shares of PepsiCo from a "buy" rating to a "hold" rating and cut their price objective for the stock from $171.00 to $170.00 in a research report on Wednesday, March 12th. Citigroup decreased their target price on shares of PepsiCo from $170.00 to $160.00 and set a "buy" rating on the stock in a report on Friday, April 25th. Morgan Stanley cut their price target on shares of PepsiCo from $168.00 to $153.00 and set an "equal weight" rating for the company in a report on Friday, April 25th. Finally, JPMorgan Chase & Co. increased their price objective on PepsiCo from $158.00 to $159.00 and gave the stock a "neutral" rating in a research report on Monday, April 21st. One analyst has rated the stock with a sell rating, fifteen have issued a hold rating and four have given a buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average price target of $159.75.

PepsiCo Stock Down 0.4%

The business's fifty day moving average is $131.43 and its two-hundred day moving average is $141.93. The stock has a market cap of $184.38 billion, a price-to-earnings ratio of 19.78, a PEG ratio of 4.21 and a beta of 0.45. The company has a quick ratio of 0.65, a current ratio of 0.83 and a debt-to-equity ratio of 2.13.

PepsiCo (NASDAQ:PEP - Get Free Report) last posted its quarterly earnings results on Thursday, April 24th. The company reported $1.48 EPS for the quarter, missing the consensus estimate of $1.49 by ($0.01). The business had revenue of $17.92 billion during the quarter, compared to analyst estimates of $17.81 billion. PepsiCo had a return on equity of 58.28% and a net margin of 10.24%. The business's revenue was down 1.8% on a year-over-year basis. During the same quarter last year, the firm earned $1.61 EPS. Equities analysts forecast that PepsiCo, Inc. will post 8.3 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 6th were given a dividend of $1.4225 per share. The ex-dividend date was Friday, June 6th. This is an increase from PepsiCo's previous quarterly dividend of $1.36. This represents a $5.69 dividend on an annualized basis and a dividend yield of 4.23%. PepsiCo's payout ratio is currently 83.68%.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in PEP. Asset Management One Co. Ltd. raised its stake in PepsiCo by 3.6% in the first quarter. Asset Management One Co. Ltd. now owns 630,906 shares of the company's stock valued at $94,598,000 after buying an additional 21,859 shares in the last quarter. Ossiam raised its position in shares of PepsiCo by 138.9% during the 4th quarter. Ossiam now owns 73,604 shares of the company's stock worth $11,192,000 after acquiring an additional 42,793 shares in the last quarter. OMERS ADMINISTRATION Corp lifted its stake in PepsiCo by 12.1% during the fourth quarter. OMERS ADMINISTRATION Corp now owns 124,797 shares of the company's stock worth $18,977,000 after purchasing an additional 13,461 shares during the last quarter. Sumitomo Mitsui DS Asset Management Company Ltd increased its stake in PepsiCo by 2.3% in the first quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 270,938 shares of the company's stock valued at $40,624,000 after purchasing an additional 6,112 shares during the last quarter. Finally, Hutner Capital Management Inc. raised its holdings in PepsiCo by 14.6% during the fourth quarter. Hutner Capital Management Inc. now owns 53,783 shares of the company's stock worth $8,178,000 after purchasing an additional 6,865 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company's stock.

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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