PepsiCo (NASDAQ:PEP) Shares Up 1.6% Following Dividend Announcement

PepsiCo, Inc. (NASDAQ:PEP) shares shot up 1.6% during trading on Thursday after the company announced a dividend. The stock traded as high as $173.49 and last traded at $170.87. 1,369,669 shares were traded during mid-day trading, a decline of 75% from the average session volume of 5,493,086 shares. The stock had previously closed at $168.17.

The newly announced dividend which will be paid on Monday, September 30th. Investors of record on Friday, September 6th will be paid a $1.355 dividend. This represents a $5.42 annualized dividend and a yield of 3.14%. The ex-dividend date is Friday, September 6th. PepsiCo’s payout ratio is 78.66%.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on PEP shares. Wedbush restated an “outperform” rating and issued a $195.00 price target on shares of PepsiCo in a research report on Tuesday, April 23rd. Jefferies Financial Group decreased their price target on shares of PepsiCo from $210.00 to $200.00 and set a “buy” rating for the company in a research report on Tuesday, July 9th. Morgan Stanley decreased their price objective on shares of PepsiCo from $190.00 to $185.00 and set an “overweight” rating for the company in a research report on Friday, July 12th. TD Cowen decreased their price objective on shares of PepsiCo from $200.00 to $190.00 and set a “buy” rating for the company in a research report on Wednesday, July 3rd. Finally, Argus cut shares of PepsiCo from a “buy” rating to a “hold” rating in a research report on Wednesday, April 3rd. Eight equities research analysts have rated the stock with a hold rating and seven have given a buy rating to the company’s stock. According to data from MarketBeat, PepsiCo has a consensus rating of “Hold” and a consensus target price of $185.53.

PepsiCo Price Performance

The stock has a market cap of $237.28 billion, a PE ratio of 25.07, a P/E/G ratio of 2.96 and a beta of 0.52. The company has a debt-to-equity ratio of 1.87, a current ratio of 0.83 and a quick ratio of 0.64. The firm’s 50 day moving average price is $168.72 and its two-hundred day moving average price is $169.85.

PepsiCo (NASDAQ:PEP) last issued its quarterly earnings data on Thursday, July 11th. The company reported $2.28 EPS for the quarter, beating the consensus estimate of $2.16 by $0.12. The company had revenue of $22.50 billion during the quarter, compared to analysts’ expectations of $22.59 billion. PepsiCo had a net margin of 10.34% and a return on equity of 57.37%. PepsiCo’s revenue for the quarter was up .8% on a year-over-year basis. During the same quarter in the previous year, the company earned $2.09 earnings per share. On average, research analysts expect that PepsiCo, Inc. will post 8.15 earnings per share for the current year.

Insider Activity at PepsiCo

In related news, CEO Ramkumar Krishnan sold 5,620 shares of the business’s stock in a transaction that occurred on Thursday, May 9th. The shares were 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 owns 53,953 shares of the company’s stock, valued at $9,603,634. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. 0.15% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On PepsiCo

Hedge funds have recently bought and sold shares of the stock. LFA Lugano Financial Advisors SA lifted its position in PepsiCo by 80.5% during the fourth quarter. LFA Lugano Financial Advisors SA now owns 157 shares of the company’s stock valued at $27,000 after purchasing an additional 70 shares during the last quarter. Valued Wealth Advisors LLC lifted its holdings in shares of PepsiCo by 77.5% in the 1st quarter. Valued Wealth Advisors LLC now owns 158 shares of the company’s stock worth $28,000 after acquiring an additional 69 shares during the last quarter. POM Investment Strategies LLC lifted its holdings in shares of PepsiCo by 141.3% in the 2nd quarter. POM Investment Strategies LLC now owns 181 shares of the company’s stock worth $30,000 after acquiring an additional 106 shares during the last quarter. Summit Securities Group LLC bought a new stake in shares of PepsiCo in the 2nd quarter worth approximately $30,000. Finally, Fortis Group Advisors LLC lifted its holdings in shares of PepsiCo by 100.0% in the 4th quarter. Fortis Group Advisors LLC now owns 194 shares of the company’s stock worth $33,000 after acquiring an additional 97 shares during the last quarter. 73.07% of the stock is currently owned by institutional investors.

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.