PepsiCo (NASDAQ:PEP) Stock Price Up 1.8% on Better-Than-Expected Earnings

PepsiCo, Inc. (NASDAQ:PEP) shares shot up 1.8% during trading on Friday following a better than expected earnings announcement. The company traded as high as $167.10 and last traded at $166.97. 1,278,486 shares changed hands during mid-day trading, a decline of 77% from the average session volume of 5,492,368 shares. The stock had previously closed at $163.95.

The company reported $2.28 EPS for the quarter, topping the consensus estimate of $2.16 by $0.12. The firm had revenue of $22.50 billion for the quarter, compared to the consensus estimate of $22.59 billion. PepsiCo had a net margin of 10.00% and a return on equity of 57.37%. The business’s quarterly revenue was up .8% on a year-over-year basis. During the same quarter last year, the firm posted $2.09 EPS.

PepsiCo Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, June 28th. Investors of record on Friday, June 7th were paid a dividend of $1.355 per share. This is an increase from PepsiCo’s previous quarterly dividend of $1.27. The ex-dividend date was Friday, June 7th. This represents a $5.42 annualized dividend and a yield of 3.25%. PepsiCo’s dividend payout ratio is presently 81.50%.

Analyst Ratings Changes

Several equities analysts recently issued reports on the company. TD Cowen lowered their price target on PepsiCo from $200.00 to $190.00 and set a “buy” rating on the stock in a research note on Wednesday, July 3rd. Morgan Stanley upgraded shares of PepsiCo from an “equal weight” rating to an “overweight” rating and set a $190.00 target price on the stock in a research note on Monday, March 18th. Jefferies Financial Group dropped their target price on shares of PepsiCo from $210.00 to $200.00 and set a “buy” rating for the company in a research report on Tuesday. Argus cut shares of PepsiCo from a “buy” rating to a “hold” rating in a research note on Wednesday, April 3rd. Finally, Royal Bank of Canada decreased their price objective on shares of PepsiCo from $180.00 to $177.00 and set a “sector perform” rating on the stock in a report on Friday. Seven research analysts have rated the stock with a hold rating and eight have issued a buy rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $185.80.

Insider Activity

In related news, CEO Ramkumar Krishnan sold 5,620 shares of the firm’s stock in a transaction on Thursday, May 9th. The stock was sold at an average price of $178.00, for a total transaction of $1,000,360.00. Following the completion of the transaction, the chief executive officer now directly owns 53,953 shares of the company’s stock, valued at approximately $9,603,634. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.15% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. LFA Lugano Financial Advisors SA increased its holdings in PepsiCo by 80.5% in the fourth quarter. LFA Lugano Financial Advisors SA now owns 157 shares of the company’s stock worth $27,000 after purchasing an additional 70 shares in the last quarter. Valued Wealth Advisors LLC grew its position in shares of PepsiCo by 77.5% during the 1st quarter. Valued Wealth Advisors LLC now owns 158 shares of the company’s stock worth $28,000 after buying an additional 69 shares during the period. Fortis Group Advisors LLC lifted its position in shares of PepsiCo by 100.0% during the 4th quarter. Fortis Group Advisors LLC now owns 194 shares of the company’s stock valued at $33,000 after acquiring an additional 97 shares during the period. Life Planning Partners Inc bought a new position in PepsiCo during the fourth quarter worth $34,000. Finally, Kathleen S. Wright Associates Inc. bought a new stake in PepsiCo in the first quarter valued at $35,000. Institutional investors own 73.07% of the company’s stock.

PepsiCo Stock Up 1.8 %

The company has a debt-to-equity ratio of 1.96, a current ratio of 0.86 and a quick ratio of 0.68. The firm’s fifty day moving average price is $171.12 and its two-hundred day moving average price is $169.99. The stock has a market cap of $229.38 billion, a price-to-earnings ratio of 25.11, a price-to-earnings-growth ratio of 2.84 and a beta of 0.52.

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.