PepsiCo (NASDAQ:PEP) Sets New 12-Month Low on Disappointing Earnings

PepsiCo, Inc. (NASDAQ:PEP) shares reached a new 52-week low during mid-day trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $137.41 and last traded at $138.10, with a volume of 2509386 shares changing hands. The stock had previously closed at $142.26.

The company reported $1.48 EPS for the quarter, missing analysts’ consensus estimates of $1.52 by ($0.04). PepsiCo had a return on equity of 58.87% and a net margin of 10.43%. The company had revenue of $17.92 billion during the quarter, compared to the consensus estimate of $17.81 billion.

PepsiCo Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Investors of record on Friday, March 7th were issued a dividend of $1.355 per share. The ex-dividend date of this dividend was Friday, March 7th. This represents a $5.42 dividend on an annualized basis and a dividend yield of 4.06%. PepsiCo’s dividend payout ratio is 77.99%.

Analyst Ratings Changes

PEP has been the topic of several analyst reports. Barclays downgraded shares of PepsiCo from an “overweight” rating to an “equal weight” rating and decreased their target price for the stock from $168.00 to $156.00 in a research note on Tuesday, March 18th. Bank of America reduced their price target on shares of PepsiCo from $155.00 to $150.00 and set a “neutral” rating on the stock in a research report on Friday. CICC Research reiterated a “market perform” rating on shares of PepsiCo in a research note on Friday, February 7th. Piper Sandler initiated coverage on PepsiCo in a research report on Tuesday, January 7th. They set an “overweight” rating and a $171.00 price objective for the company. Finally, HSBC dropped their target price on PepsiCo from $186.00 to $170.00 and set a “hold” rating on the stock in a report on Tuesday, February 4th. One equities research analyst has rated the stock with a sell rating, fourteen have given a hold rating and four have issued a buy rating to the company’s stock. According to data from MarketBeat, PepsiCo has a consensus rating of “Hold” and an average price target of $162.00.

Institutional Trading of PepsiCo

Large investors have recently modified their holdings of the company. Mather Group LLC. raised its position in PepsiCo by 952.8% during the 1st quarter. Mather Group LLC. now owns 111,732 shares of the company’s stock valued at $16,753,000 after purchasing an additional 101,119 shares in the last quarter. Alta Advisers Ltd lifted its holdings in PepsiCo by 55.6% during the first quarter. Alta Advisers Ltd now owns 6,997 shares of the company’s stock worth $1,049,000 after buying an additional 2,500 shares during the period. Hixon Zuercher LLC boosted its position in PepsiCo by 16.4% during the 1st quarter. Hixon Zuercher LLC now owns 29,969 shares of the company’s stock valued at $4,493,000 after acquiring an additional 4,221 shares in the last quarter. Kennon Green & Company LLC increased its holdings in shares of PepsiCo by 60.6% in the 1st quarter. Kennon Green & Company LLC now owns 20,569 shares of the company’s stock valued at $3,084,000 after acquiring an additional 7,761 shares during the period. Finally, Deseret Mutual Benefit Administrators raised its position in shares of PepsiCo by 5.4% in the 1st quarter. Deseret Mutual Benefit Administrators now owns 9,329 shares of the company’s stock worth $1,399,000 after acquiring an additional 482 shares in the last quarter. Hedge funds and other institutional investors own 73.07% of the company’s stock.

PepsiCo Stock Performance

The business has a 50-day moving average of $147.70 and a two-hundred day moving average of $153.92. The company has a debt-to-equity ratio of 2.05, a current ratio of 0.82 and a quick ratio of 0.65. The company has a market cap of $182.91 billion, a P/E ratio of 19.19, a P/E/G ratio of 3.09 and a beta of 0.49.

About PepsiCo

PepsiCo, Inc engages in the manufacture, marketing, distribution, and sale of various beverages and convenient foods worldwide. The company operates through seven segments: Frito-Lay North America; Quaker Foods North America; PepsiCo Beverages North America; Latin America; Europe; Africa, Middle East and South Asia; and Asia Pacific, Australia and New Zealand and China Region.