Pepsico, Inc. (PEP) Upgraded to “Buy” by Zacks Investment Research
Pepsico, Inc. (NYSE:PEP) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a report issued on Tuesday. The firm currently has a $123.00 price target on the stock. Zacks Investment Research‘s price target would indicate a potential upside of 11.81% from the stock’s previous close.
According to Zacks, “PepsiCo reported mixed third-quarter 2017 results, with earnings beating the Zacks Consensus Estimate and revenues missing the same. Nonetheless, this is the sixth consecutive quarter of positive earnings surprise. On a year-over-year basis, core earnings and revenues grew 6% and 1.3%, respectively. PepsiCo has been doing well on the back of significant innovation, continued momentum in Frito-Lay business, revenue management strategies, improved productivity and cost-saving initiatives, along with better market execution. Revenues increased 1.7% on an organic basis, primarily driven by higher demand for beverages/food/snacks in the Asia, Middle East and North Africa, Europe Sub-Saharan Africa and Latin America segments. Total volumes however declined 1% during the quarter against flat growth in the previous quarter. Core gross margins also contracted 15 basis points.”
Several other analysts also recently issued reports on PEP. Deutsche Bank AG reaffirmed a “buy” rating and set a $122.00 price objective (down from $125.00) on shares of Pepsico in a report on Friday. Credit Suisse Group reaffirmed a “hold” rating and set a $122.00 price objective (down from $124.00) on shares of Pepsico in a report on Thursday, October 5th. BidaskClub upgraded shares of Pepsico from a “hold” rating to a “buy” rating in a research note on Thursday, August 17th. Susquehanna Bancshares Inc reiterated a “buy” rating and set a $135.00 target price on shares of Pepsico in a research note on Monday, October 2nd. Finally, Jefferies Group LLC cut shares of Pepsico from a “buy” rating to a “hold” rating and cut their target price for the company from $133.00 to $108.00 in a research note on Monday, October 2nd. Seven analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the stock. The company presently has an average rating of “Buy” and an average price target of $121.80.
Pepsico (NYSE:PEP) traded up 0.67% during midday trading on Tuesday, reaching $110.75. 2,194,355 shares of the company traded hands. Pepsico has a 12 month low of $98.50 and a 12 month high of $119.39. The stock has a market capitalization of $157.50 billion, a price-to-earnings ratio of 22.89 and a beta of 0.68. The firm has a 50 day moving average of $113.89 and a 200-day moving average of $114.75.
Pepsico (NYSE:PEP) last posted its quarterly earnings data on Wednesday, October 4th. The company reported $1.48 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $1.43 by $0.05. The business had revenue of $16.24 billion during the quarter, compared to the consensus estimate of $16.35 billion. Pepsico had a net margin of 10.97% and a return on equity of 59.68%. Pepsico’s quarterly revenue was up 1.3% compared to the same quarter last year. During the same period in the prior year, the firm earned $1.40 EPS. Analysts forecast that Pepsico will post $5.22 EPS for the current fiscal year.
In other news, CEO Indra K. Nooyi sold 340,449 shares of the stock in a transaction on Monday, July 24th. The shares were sold at an average price of $116.42, for a total value of $39,635,072.58. Following the completion of the transaction, the chief executive officer now owns 733,315 shares in the company, valued at approximately $85,372,532.30. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Mehmood Khan sold 63,396 shares of the stock in a transaction on Monday, July 24th. The shares were sold at an average price of $116.39, for a total transaction of $7,378,660.44. Following the completion of the transaction, the executive vice president now owns 174,273 shares of the company’s stock, valued at approximately $20,283,634.47. The disclosure for this sale can be found here. In the last 90 days, insiders sold 898,164 shares of company stock valued at $104,585,929. Corporate insiders own 0.26% of the company’s stock.
Several institutional investors have recently made changes to their positions in PEP. Howe & Rusling Inc. increased its position in shares of Pepsico by 499.4% during the 1st quarter. Howe & Rusling Inc. now owns 81,376 shares of the company’s stock worth $9,103,000 after purchasing an additional 67,800 shares in the last quarter. Asset Planning Services Ltd. increased its position in shares of Pepsico by 66.1% during the 1st quarter. Asset Planning Services Ltd. now owns 1,003 shares of the company’s stock worth $112,000 after purchasing an additional 399 shares in the last quarter. Arbor Investment Advisors LLC increased its position in shares of Pepsico by 1.2% during the 1st quarter. Arbor Investment Advisors LLC now owns 4,169 shares of the company’s stock worth $466,000 after purchasing an additional 49 shares in the last quarter. First United Bank Trust increased its position in shares of Pepsico by 1.5% during the 1st quarter. First United Bank Trust now owns 21,165 shares of the company’s stock worth $2,367,000 after purchasing an additional 318 shares in the last quarter. Finally, Reilly Financial Advisors LLC increased its position in shares of Pepsico by 0.9% during the 1st quarter. Reilly Financial Advisors LLC now owns 104,717 shares of the company’s stock worth $11,714,000 after purchasing an additional 973 shares in the last quarter. Institutional investors and hedge funds own 70.17% of the company’s stock.
PepsiCo, Inc is a global food and beverage company. The Company’s portfolio of brands includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. The Company operates through six segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA), and Asia, Middle East and North Africa (AMENA).
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