PepsiCo (NASDAQ:PEP) Shares Up 0.4% After Strong Earnings

PepsiCo, Inc. (NASDAQ:PEP)’s stock price shot up 0.4% on Wednesday following a better than expected earnings announcement. The stock traded as high as $171.60 and last traded at $171.17. 1,299,933 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 5,485,505 shares. The stock had previously closed at $170.42.

The company reported $2.31 EPS for the quarter, topping the consensus estimate of $2.30 by $0.01. PepsiCo had a return on equity of 57.37% and a net margin of 10.34%. The business had revenue of $23.32 billion for the quarter, compared to analyst estimates of $23.86 billion. During the same quarter in the previous year, the firm earned $2.25 EPS. The company’s quarterly revenue was down .6% compared to the same quarter last year.

PepsiCo Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 30th. Stockholders of record on Friday, September 6th were given a dividend of $1.355 per share. This represents a $5.42 annualized dividend and a dividend yield of 3.13%. The ex-dividend date was Friday, September 6th. PepsiCo’s payout ratio is presently 78.66%.

Analysts Set New Price Targets

Several research firms have issued reports on PEP. TD Cowen cut PepsiCo from a “buy” rating to a “hold” rating and cut their target price for the stock from $190.00 to $183.00 in a research note on Thursday. Bank of America reduced their price objective on shares of PepsiCo from $190.00 to $185.00 and set a “buy” rating on the stock in a report on Monday, September 30th. DZ Bank lowered shares of PepsiCo from a “buy” rating to a “hold” rating and set a $183.00 target price for the company. in a research note on Friday, July 19th. JPMorgan Chase & Co. reduced their price target on shares of PepsiCo from $185.00 to $183.00 and set a “neutral” rating on the stock in a research note on Wednesday. Finally, Jefferies Financial Group lowered their price objective on shares of PepsiCo from $210.00 to $200.00 and set a “buy” rating for the company in a research report on Tuesday, July 9th. Nine investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $184.07.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of PEP. Bragg Financial Advisors Inc lifted its position in shares of PepsiCo by 1.8% during the 4th quarter. Bragg Financial Advisors Inc now owns 53,786 shares of the company’s stock worth $9,135,000 after purchasing an additional 957 shares during the last quarter. Bayesian Capital Management LP acquired a new position in shares of PepsiCo during the 4th quarter worth about $3,480,000. Baird Financial Group Inc. increased its holdings in shares of PepsiCo by 4.4% in the 4th quarter. Baird Financial Group Inc. now owns 1,381,461 shares of the company’s stock valued at $234,627,000 after acquiring an additional 58,472 shares during the last quarter. Bridgeway Capital Management LLC raised its position in shares of PepsiCo by 5.1% during the 4th quarter. Bridgeway Capital Management LLC now owns 118,602 shares of the company’s stock worth $20,143,000 after acquiring an additional 5,743 shares in the last quarter. Finally, Bradley Foster & Sargent Inc. CT lifted its stake in PepsiCo by 11.1% during the fourth quarter. Bradley Foster & Sargent Inc. CT now owns 603,985 shares of the company’s stock worth $102,581,000 after purchasing an additional 60,556 shares during the last quarter. 73.07% of the stock is currently owned by hedge funds and other institutional investors.

PepsiCo Price Performance

The stock has a market capitalization of $237.82 billion, a price-to-earnings ratio of 25.11, a P/E/G ratio of 3.07 and a beta of 0.53. The company has a quick ratio of 0.64, a current ratio of 0.83 and a debt-to-equity ratio of 1.87. The stock has a fifty day moving average of $173.62 and a 200-day moving average of $172.06.

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.