PepsiCo (NASDAQ:PEP) Shares Down 0.6% on Analyst Downgrade

PepsiCo, Inc. (NASDAQ:PEP)’s share price dropped 0.6% during trading on Thursday after TD Cowen lowered their price target on the stock from $200.00 to $190.00. TD Cowen currently has a buy rating on the stock. PepsiCo traded as low as $161.96 and last traded at $162.60. Approximately 2,879,575 shares were traded during mid-day trading, a decline of 47% from the average daily volume of 5,397,682 shares. The stock had previously closed at $163.58.

A number of other brokerages have also issued reports on PEP. BNP Paribas began coverage on PepsiCo in a research note on Monday, June 24th. They set a “neutral” rating and a $174.00 price target for the company. Morgan Stanley raised PepsiCo from an “equal weight” rating to an “overweight” rating and set a $190.00 target price for the company in a research report on Monday, March 18th. JPMorgan Chase & Co. boosted their price target on PepsiCo from $181.00 to $184.00 and gave the stock a “neutral” rating in a research report on Wednesday, June 26th. Wedbush restated an “outperform” rating and set a $195.00 target price on shares of PepsiCo in a research note on Tuesday, April 23rd. Finally, Jefferies Financial Group boosted their price target on PepsiCo from $209.00 to $211.00 and gave the company a “buy” rating in a research note on Thursday, May 16th. Seven research analysts have rated the stock with a hold rating and seven have given a buy rating to the stock. According to data from MarketBeat.com, PepsiCo has an average rating of “Moderate Buy” and an average price target of $186.64.

Insider Activity

In other news, CEO Ramkumar Krishnan sold 5,620 shares of the company’s stock in a transaction that occurred on Thursday, May 9th. The stock was sold at an average price of $178.00, for a total value of $1,000,360.00. Following the completion of the sale, the chief executive officer now directly owns 53,953 shares in the company, valued at $9,603,634. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 0.14% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the business. LFA Lugano Financial Advisors SA grew its position in PepsiCo by 80.5% in the fourth quarter. LFA Lugano Financial Advisors SA now owns 157 shares of the company’s stock worth $27,000 after acquiring an additional 70 shares during the period. Valued Wealth Advisors LLC grew its position in PepsiCo by 77.5% in the first quarter. Valued Wealth Advisors LLC now owns 158 shares of the company’s stock worth $28,000 after acquiring an additional 69 shares during the period. Fortis Group Advisors LLC grew its position in PepsiCo by 100.0% in the fourth quarter. Fortis Group Advisors LLC now owns 194 shares of the company’s stock worth $33,000 after acquiring an additional 97 shares during the period. Life Planning Partners Inc acquired a new position in PepsiCo during the fourth quarter worth $34,000. Finally, Kathleen S. Wright Associates Inc. acquired a new position in PepsiCo during the first quarter worth $35,000. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

PepsiCo Stock Down 0.6 %

The company has a debt-to-equity ratio of 1.96, a current ratio of 0.86 and a quick ratio of 0.68. The business has a 50 day simple moving average of $172.65 and a 200 day simple moving average of $170.19. The company has a market capitalization of $223.54 billion, a price-to-earnings ratio of 24.45, a PEG ratio of 2.69 and a beta of 0.52.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings results on Tuesday, April 23rd. The company reported $1.61 EPS for the quarter, topping analysts’ consensus estimates of $1.52 by $0.09. The company had revenue of $18.25 billion for the quarter, compared to analysts’ expectations of $18.08 billion. PepsiCo had a return on equity of 57.37% and a net margin of 10.00%. The firm’s revenue was up 2.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.50 earnings per share. As a group, equities analysts predict that PepsiCo, Inc. will post 8.16 earnings per share for the current fiscal year.

PepsiCo Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 28th. Investors of record on Friday, June 7th were issued a $1.355 dividend. This represents a $5.42 annualized dividend and a yield of 3.33%. The ex-dividend date was Friday, June 7th. This is a positive change from PepsiCo’s previous quarterly dividend of $1.27. PepsiCo’s dividend payout ratio is 81.50%.

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.