Pepsico (PEP) Lowered to “Hold” at Zacks Investment Research
Pepsico (NYSE:PEP) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report issued on Tuesday.
According to Zacks, “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. Moreover, an improving economy, better industry pricing dynamics and a consistency in positive innovation bode well. It rolled out several products recently which management believes will drive sales and profits in 2017. Meanwhile, PepsiCo's shares outperformed its industry in the last three months. That said, growing health awareness has been hurting the CSD category, resulting in a 4% volume decline in the first nine months of 2017 in North America. Again, rising volatility in global markets and increasing currency headwinds may dampen growth.”
Several other equities analysts have also recently issued reports on PEP. BidaskClub raised shares of Pepsico from a “hold” rating to a “buy” rating in a research note on Thursday, August 17th. BMO Capital Markets reaffirmed a “hold” rating and issued a $120.00 price objective on shares of Pepsico in a research note on Wednesday, September 6th. Royal Bank Of Canada reaffirmed a “hold” rating and issued a $115.00 price objective on shares of Pepsico in a research note on Wednesday, September 6th. Credit Suisse Group cut shares of Pepsico from an “outperform” rating to a “neutral” rating and lowered their price objective for the stock from $126.00 to $124.00 in a research note on Friday, September 8th. Finally, Macquarie initiated coverage on shares of Pepsico in a research note on Thursday, September 14th. They issued an “outperform” rating and a $125.00 price objective on the stock. Eight analysts have rated the stock with a hold rating, nine have given a buy rating and one has given a strong buy rating to the company’s stock. The stock has an average rating of “Buy” and a consensus price target of $121.96.
Pepsico (NYSE:PEP) last announced 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 company 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 previous year, the company posted $1.40 EPS. equities research analysts forecast that Pepsico will post 5.22 earnings per share for the current fiscal year.
In other news, insider Ramon Laguarta sold 21,449 shares of Pepsico 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 the SEC website. Company insiders own 0.26% of the company’s stock.
Institutional investors and hedge funds have recently made changes to their positions in the stock. Barnett & Company Inc. lifted its stake in Pepsico by 270.4% in the second quarter. Barnett & Company Inc. now owns 900 shares of the company’s stock valued at $104,000 after acquiring an additional 657 shares during the last quarter. Aviance Capital Management LLC acquired a new stake in shares of Pepsico in the second quarter worth $111,000. Legacy Advisors LLC acquired a new stake in shares of Pepsico in the third quarter worth $115,000. Asset Planning Services Ltd. lifted its stake in shares of Pepsico by 0.3% in the second quarter. Asset Planning Services Ltd. now owns 1,006 shares of the company’s stock worth $116,000 after buying an additional 3 shares during the last quarter. Finally, Patriot Financial Group Insurance Agency LLC lifted its stake in shares of Pepsico by 5.9% in the second quarter. Patriot Financial Group Insurance Agency LLC now owns 1,211 shares of the company’s stock worth $138,000 after buying an additional 67 shares during the last quarter. 70.50% of the stock is currently owned by hedge funds and other institutional investors.
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Pepsico Company Profile
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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