PepsiCo (NASDAQ:PEP) Reaches New 1-Year Low Following Analyst Downgrade

PepsiCo, Inc. (NASDAQ:PEP)’s share price reached a new 52-week low during trading on Thursday after TD Cowen lowered their price target on the stock from $183.00 to $160.00. TD Cowen currently has a hold rating on the stock. PepsiCo traded as low as $144.56 and last traded at $146.54, with a volume of 6776833 shares traded. The stock had previously closed at $145.40.

A number of other equities analysts also recently commented on PEP. JPMorgan Chase & Co. cut their price objective on PepsiCo from $185.00 to $183.00 and set a “neutral” rating on the stock in a report on Wednesday, October 9th. Wells Fargo & Company reduced their price objective on PepsiCo from $170.00 to $155.00 and set an “equal weight” rating on the stock in a research note on Tuesday. Piper Sandler started coverage on shares of PepsiCo in a report on Tuesday. They issued an “overweight” rating and a $171.00 price target for the company. Redburn Atlantic raised PepsiCo to a “strong sell” rating in a report on Thursday, October 10th. Finally, Bank of America cut their price target on PepsiCo from $190.00 to $185.00 and set a “buy” rating on the stock in a report on Monday, September 30th. One analyst has rated the stock with a sell rating, nine have assigned a hold rating and eight have issued a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $180.64.

Hedge Funds Weigh In On PepsiCo

A number of hedge funds have recently modified their holdings of the stock. Global Wealth Strategies & Associates raised its position in PepsiCo by 59.0% during the third quarter. Global Wealth Strategies & Associates now owns 159 shares of the company’s stock valued at $27,000 after buying an additional 59 shares during the period. Highline Wealth Partners LLC acquired a new stake in shares of PepsiCo during the third quarter worth approximately $28,000. Legacy Investment Solutions LLC purchased a new position in PepsiCo during the third quarter valued at approximately $31,000. Rakuten Securities Inc. lifted its position in PepsiCo by 93.2% in the 3rd quarter. Rakuten Securities Inc. now owns 199 shares of the company’s stock worth $34,000 after buying an additional 96 shares in the last quarter. Finally, Mattson Financial Services LLC acquired a new stake in shares of PepsiCo during the 2nd quarter valued at $34,000. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo Price Performance

The firm has a market capitalization of $201.05 billion, a price-to-earnings ratio of 21.61, a P/E/G ratio of 2.94 and a beta of 0.54. The company has a quick ratio of 0.70, a current ratio of 0.89 and a debt-to-equity ratio of 1.96. The stock’s 50 day moving average price is $158.20 and its two-hundred day moving average price is $166.82.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings data on Tuesday, October 8th. The company reported $2.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.30 by $0.01. PepsiCo had a net margin of 10.18% and a return on equity of 57.32%. The business had revenue of $23.32 billion during the quarter, compared to analyst estimates of $23.86 billion. During the same quarter in the previous year, the business earned $2.25 EPS. PepsiCo’s quarterly revenue was down .6% compared to the same quarter last year. Analysts anticipate that PepsiCo, Inc. will post 8.15 EPS for the current fiscal year.

PepsiCo Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, January 6th. Stockholders of record on Friday, December 6th were paid a $1.355 dividend. This represents a $5.42 dividend on an annualized basis and a dividend yield of 3.70%. The ex-dividend date of this dividend was Friday, December 6th. PepsiCo’s payout ratio is 79.94%.

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.