PepsiCo (PEP) Board of Directors Authorizes Stock Buyback Program

PepsiCo (NASDAQ:PEP) announced that its Board of Directors has initiated a share buyback program, which permits the company to repurchase $15.00 billion in shares on Tuesday, February 13th, EventVestor reports. This repurchase authorization permits the company to purchase shares of its stock through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its stock is undervalued.

A number of brokerages have issued reports on PEP. Stifel Nicolaus reaffirmed a “hold” rating and issued a $120.00 price objective on shares of PepsiCo in a research report on Friday, December 22nd. SunTrust Banks dropped their target price on shares of PepsiCo from $125.00 to $115.00 and set a “hold” rating on the stock in a research note on Wednesday. Susquehanna Bancshares boosted their target price on shares of PepsiCo from $137.00 to $140.00 and gave the company a “positive” rating in a research note on Monday. Jefferies Group reiterated a “hold” rating and issued a $113.00 target price on shares of PepsiCo in a research note on Tuesday. Finally, BidaskClub cut shares of PepsiCo from a “buy” rating to a “hold” rating in a research note on Thursday, January 11th. One research analyst has rated the stock with a sell rating, nine have issued a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company. The company currently has a consensus rating of “Hold” and an average price target of $123.04.

Shares of PepsiCo (NASDAQ PEP) traded down $3.03 during mid-day trading on Thursday, hitting $109.11. 7,702,600 shares of the company were exchanged, compared to its average volume of 4,402,647. The stock has a market cap of $155,280.00, a PE ratio of 21.52, a P/E/G ratio of 2.93 and a beta of 0.62. The company has a quick ratio of 1.21, a current ratio of 1.51 and a debt-to-equity ratio of 3.03. PepsiCo has a 12 month low of $106.19 and a 12 month high of $122.51.

PepsiCo (NASDAQ:PEP) last announced its quarterly earnings results on Tuesday, February 13th. The company reported $1.31 EPS for the quarter, beating the Zacks’ consensus estimate of $1.30 by $0.01. The company had revenue of $19.53 billion for the quarter, compared to analysts’ expectations of $19.40 billion. PepsiCo had a net margin of 7.65% and a return on equity of 61.14%. PepsiCo’s revenue was up .1% compared to the same quarter last year. During the same period in the prior year, the company posted $1.20 EPS. sell-side analysts anticipate that PepsiCo will post 5.63 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which will be paid on Friday, March 30th. Investors of record on Friday, March 2nd will be paid a dividend of $0.805 per share. This represents a $3.22 dividend on an annualized basis and a dividend yield of 2.95%. The ex-dividend date of this dividend is Thursday, March 1st. PepsiCo’s payout ratio is currently 63.26%.

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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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