Pepsico, Inc. (PEP) Stock Rating Lowered by Zacks Investment Research
Pepsico, Inc. (NYSE:PEP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Monday.
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.”
A number of other equities research analysts have also recently commented on PEP. Cowen and Company reiterated a “buy” rating on shares of Pepsico in a report on Sunday, September 17th. Credit Suisse Group cut shares of Pepsico from an “outperform” rating to a “neutral” rating and cut their price target for the company from $126.00 to $124.00 in a report on Friday, September 8th. Macquarie assumed coverage on shares of Pepsico in a report on Thursday, September 14th. They set an “outperform” rating and a $125.00 price target on the stock. BMO Capital Markets reiterated a “hold” rating and set a $120.00 price target on shares of Pepsico in a report on Wednesday, September 6th. Finally, Royal Bank Of Canada reiterated a “hold” rating and set a $115.00 price target on shares of Pepsico in a report on Wednesday, September 6th. Eight equities research analysts have rated the stock with a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company. Pepsico has an average rating of “Buy” and an average price target of $121.35.
Pepsico (NYSE PEP) traded down 0.6644% during trading on Monday, reaching $109.8652. The company’s stock had a trading volume of 1,155,409 shares. The company has a 50-day moving average of $112.13 and a 200 day moving average of $114.68. Pepsico has a one year low of $98.50 and a one year high of $119.39. The firm has a market cap of $156.24 billion, a PE ratio of 22.7041 and a beta of 0.68.
Pepsico (NYSE:PEP) last announced its quarterly earnings data on Wednesday, October 4th. The company reported $1.48 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.43 by $0.05. The business had revenue of $16.24 billion for the quarter, compared to analysts’ expectations of $16.35 billion. Pepsico had a net margin of 10.97% and a return on equity of 59.68%. The business’s revenue was up 1.3% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.40 earnings per share. Analysts expect that Pepsico will post $5.22 EPS for the current fiscal year.
In other Pepsico news, insider Ramon Laguarta sold 21,449 shares of the stock in a transaction that occurred on Tuesday, October 10th. The shares were sold at an average price of $110.51, for a total value of $2,370,328.99. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, SVP Marie T. Gallagher sold 41,489 shares of the stock in a transaction that occurred on Monday, August 7th. The stock was sold at an average price of $116.77, for a total transaction of $4,844,670.53. Following the completion of the transaction, the senior vice president now owns 76,037 shares in the company, valued at $8,878,840.49. The disclosure for this sale can be found here. 0.26% of the stock is currently owned by company insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in PEP. OLD Point Trust & Financial Services N A raised its position in shares of Pepsico by 0.4% during the 1st quarter. OLD Point Trust & Financial Services N A now owns 62,111 shares of the company’s stock valued at $6,948,000 after purchasing an additional 229 shares during the period. Abner Herrman & Brock LLC raised its position in shares of Pepsico by 3.6% during the 1st quarter. Abner Herrman & Brock LLC now owns 109,264 shares of the company’s stock valued at $12,222,000 after purchasing an additional 3,799 shares during the period. Wagner Bowman Management Corp raised its position in shares of Pepsico by 3.3% during the 1st quarter. Wagner Bowman Management Corp now owns 36,857 shares of the company’s stock valued at $4,122,000 after purchasing an additional 1,181 shares during the period. Hudson Valley Investment Advisors Inc. ADV raised its position in shares of Pepsico by 0.8% during the 1st quarter. Hudson Valley Investment Advisors Inc. ADV now owns 61,995 shares of the company’s stock valued at $6,935,000 after purchasing an additional 513 shares during the period. Finally, V Wealth Management LLC raised its position in shares of Pepsico by 20.8% during the 1st quarter. V Wealth Management LLC now owns 6,939 shares of the company’s stock valued at $781,000 after purchasing an additional 1,196 shares during the period. Institutional investors and hedge funds own 70.53% 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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