PepsiCo (NASDAQ:PEP) Trading Down 1.7% - Should You Sell?

PepsiCo, Inc. (NASDAQ:PEP - Get Free Report)'s share price was down 1.7% during mid-day trading on Monday . The company traded as low as $140.51 and last traded at $140.79. Approximately 2,497,318 shares changed hands during trading, a decline of 65% from the average daily volume of 7,221,875 shares. The stock had previously closed at $143.24.

Wall Street Analysts Forecast Growth

PEP has been the topic of several research reports. JPMorgan Chase & Co. lowered their price objective on shares of PepsiCo from $150.00 to $139.00 and set a "neutral" rating on the stock in a research report on Thursday, July 10th. Citigroup increased their target price on PepsiCo from $160.00 to $168.00 and gave the company a "buy" rating in a report on Friday. Dbs Bank lowered shares of PepsiCo from a "strong-buy" rating to a "hold" rating in a research report on Friday, May 9th. UBS Group cut their price objective on shares of PepsiCo from $175.00 to $169.00 and set a "buy" rating on the stock in a report on Friday, April 25th. Finally, Wells Fargo & Company upped their price objective on shares of PepsiCo from $140.00 to $154.00 and gave the company an "equal weight" rating in a research note on Friday. One investment analyst has rated the stock with a sell rating, fifteen have assigned a hold rating and four have issued a buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $158.73.

PepsiCo Stock Performance

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 stock has a fifty day moving average price of $132.23 and a 200 day moving average price of $141.04. The firm has a market cap of $194.00 billion, a price-to-earnings ratio of 25.81, a price-to-earnings-growth ratio of 4.38 and a beta of 0.45.

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

PepsiCo Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 6th were paid a dividend of $1.4225 per share. The ex-dividend date was Friday, June 6th. This represents a $5.69 annualized dividend and a dividend yield of 4.02%. This is a positive change from PepsiCo's previous quarterly dividend of $1.36. PepsiCo's dividend payout ratio (DPR) is currently 103.64%.

Hedge Funds Weigh In On PepsiCo

Several institutional investors and hedge funds have recently modified their holdings of the stock. Synergy Asset Management LLC acquired a new stake in PepsiCo in the 2nd quarter valued at approximately $1,113,000. Mattern Capital Management LLC grew its position in PepsiCo by 3.6% during the second quarter. Mattern Capital Management LLC now owns 57,452 shares of the company's stock valued at $7,586,000 after acquiring an additional 2,003 shares during the period. River Street Advisors LLC raised its stake in shares of PepsiCo by 2.9% during the second quarter. River Street Advisors LLC now owns 11,973 shares of the company's stock valued at $1,581,000 after purchasing an additional 336 shares during the period. Hilltop National Bank bought a new stake in PepsiCo during the second quarter valued at $2,246,000. Finally, Triad Wealth Partners LLC boosted its holdings in shares of PepsiCo by 7.2% in the second quarter. Triad Wealth Partners LLC now owns 3,617 shares of the company's stock valued at $478,000 after acquiring an additional 242 shares in the last quarter. Institutional investors and hedge funds own 73.07% of the company's stock.

PepsiCo Company Profile

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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