Pepsico (PEP) Upgraded at Zacks Investment Research
Pepsico (NYSE:PEP) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released 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. 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. Meanwhile, PepsiCo’s shares have gained 12.2% year to date, underperforming the industry’s growth of 13.4%.”
Other equities research analysts also recently issued reports about the company. BMO Capital Markets reiterated a “hold” rating and issued a $120.00 target price on shares of Pepsico in a research report on Wednesday, September 6th. Credit Suisse Group reiterated a “hold” rating and issued a $122.00 target price (down from $124.00) on shares of Pepsico in a research report on Thursday, October 5th. Royal Bank of Canada reiterated a “hold” rating on shares of Pepsico in a research report on Sunday, November 12th. Stifel Nicolaus reiterated a “hold” rating and issued a $116.00 target price on shares of Pepsico in a research report on Friday, October 13th. Finally, Macquarie began coverage on Pepsico in a research report on Thursday, September 14th. They issued an “outperform” rating and a $125.00 target price on the stock. 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 stock. Pepsico has an average rating of “Buy” and a consensus price target of $121.96.
Pepsico (NYSE:PEP) last posted its earnings results on Wednesday, October 4th. The company reported $1.48 EPS for the quarter, topping analysts’ consensus estimates of $1.43 by $0.05. The company had revenue of $16.24 billion for the quarter, compared to the consensus estimate of $16.35 billion. Pepsico had a return on equity of 59.68% and a net margin of 10.97%. The firm’s revenue for the quarter was up 1.3% on a year-over-year basis. During the same period in the previous year, the business earned $1.40 earnings per share. analysts forecast that Pepsico will post 5.22 earnings per share for the current year.
In other Pepsico news, insider Ramon Laguarta sold 21,449 shares of the business’s stock in a transaction that occurred on Tuesday, October 10th. The stock was sold at an average price of $110.51, for a total transaction of $2,370,328.99. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 0.26% of the company’s stock.
A number of hedge funds and other institutional investors have recently modified their holdings of PEP. Grove Bank & Trust grew its stake in shares of Pepsico by 41.6% during the second quarter. Grove Bank & Trust now owns 11,371 shares of the company’s stock valued at $1,313,000 after buying an additional 3,339 shares during the last quarter. Wedbush Securities Inc. grew its stake in shares of Pepsico by 20.4% during the second quarter. Wedbush Securities Inc. now owns 17,247 shares of the company’s stock valued at $1,992,000 after buying an additional 2,922 shares during the last quarter. Stratos Wealth Partners LTD. grew its stake in shares of Pepsico by 3.8% during the second quarter. Stratos Wealth Partners LTD. now owns 78,716 shares of the company’s stock valued at $9,091,000 after buying an additional 2,905 shares during the last quarter. Pioneer Investment Management Inc. grew its stake in shares of Pepsico by 2.1% during the second quarter. Pioneer Investment Management Inc. now owns 4,506,679 shares of the company’s stock valued at $520,476,000 after buying an additional 91,851 shares during the last quarter. Finally, Koshinski Asset Management Inc. grew its stake in shares of Pepsico by 4.0% during the second quarter. Koshinski Asset Management Inc. now owns 6,907 shares of the company’s stock valued at $798,000 after buying an additional 265 shares during the last quarter. 70.50% of the stock is currently owned by institutional investors.
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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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