PepsiCo (NASDAQ:PEP) Cut to Hold at ValuEngine

ValuEngine downgraded shares of PepsiCo (NASDAQ:PEP) from a buy rating to a hold rating in a research note published on Thursday, ValuEngine reports.

PEP has been the topic of several other reports. Jefferies Financial Group lifted their price objective on shares of PepsiCo from $123.00 to $134.00 and gave the company a hold rating in a report on Wednesday, July 10th. Goldman Sachs Group set a $132.00 price target on shares of PepsiCo and gave the stock a neutral rating in a report on Wednesday, April 24th. Deutsche Bank lifted their price target on shares of PepsiCo from $120.00 to $131.00 and gave the stock a hold rating in a report on Thursday, April 18th. Atlantic Securities began coverage on shares of PepsiCo in a report on Monday, July 29th. They issued an overweight rating and a $145.00 price target on the stock. Finally, SunTrust Banks reaffirmed a hold rating and issued a $125.00 price target on shares of PepsiCo in a report on Wednesday, July 10th. One research analyst has rated the stock with a sell rating, twelve have assigned a hold rating and eleven have given a buy rating to the company’s stock. PepsiCo presently has a consensus rating of Hold and an average price target of $129.35.

PEP stock traded down $3.33 during trading on Thursday, hitting $124.59. 2,993,956 shares of the company’s stock traded hands, compared to its average volume of 4,646,821. The company has a market capitalization of $178.85 billion, a price-to-earnings ratio of 22.01, a P/E/G ratio of 3.32 and a beta of 0.60. The stock’s fifty day moving average price is $132.05. The company has a debt-to-equity ratio of 1.97, a current ratio of 0.86 and a quick ratio of 0.66. PepsiCo has a 1 year low of $104.53 and a 1 year high of $135.24.

PepsiCo (NASDAQ:PEP) last issued its quarterly earnings data on Tuesday, July 9th. The company reported $1.54 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $1.49 by $0.05. The company had revenue of $16.45 billion for the quarter, compared to analyst estimates of $16.44 billion. PepsiCo had a net margin of 19.59% and a return on equity of 59.50%. PepsiCo’s revenue was up 2.2% compared to the same quarter last year. During the same period last year, the company posted $1.61 earnings per share. On average, sell-side analysts anticipate that PepsiCo will post 5.51 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 30th. Stockholders of record on Friday, September 6th will be paid a dividend of $0.955 per share. The ex-dividend date is Thursday, September 5th. This represents a $3.82 annualized dividend and a dividend yield of 3.07%. PepsiCo’s payout ratio is currently 67.49%.

In other PepsiCo news, Chairman Ramon Laguarta sold 15,431 shares of the company’s stock in a transaction dated Thursday, May 16th. The shares were sold at an average price of $129.43, for a total value of $1,997,234.33. Following the completion of the transaction, the chairman now owns 232,394 shares in the company, valued at $30,078,755.42. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Steven C. Williams sold 2,420 shares of the company’s stock in a transaction dated Thursday, July 11th. The stock was sold at an average price of $133.95, for a total transaction of $324,159.00. Following the completion of the transaction, the chief executive officer now owns 54,920 shares of the company’s stock, valued at approximately $7,356,534. The disclosure for this sale can be found here. Insiders own 0.28% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in PEP. Personal Wealth Partners purchased a new stake in PepsiCo during the 2nd quarter valued at about $25,000. Evolution Wealth Advisors LLC acquired a new position in PepsiCo in the 2nd quarter valued at about $27,000. Financial Advantage Inc. acquired a new position in PepsiCo in the 2nd quarter valued at about $28,000. Mackey Komara & Dankovich LLC boosted its holdings in PepsiCo by 199.0% in the 2nd quarter. Mackey Komara & Dankovich LLC now owns 858 shares of the company’s stock valued at $38,000 after purchasing an additional 571 shares during the last quarter. Finally, 1 North Wealth Services LLC acquired a new position in PepsiCo in the 4th quarter valued at about $39,000. 71.18% of the stock is owned by institutional investors and hedge funds.

PepsiCo Company Profile

PepsiCo, Inc operates as a food and beverage company worldwide. The company's Frito-Lay North America segment offers branded dips; Cheetos cheese-flavored snacks; and Doritos tortilla, Fritos corn, Lay's potato, Ruffles potato, and Tostitos tortilla chips. Its Quaker Foods North America segment provides cereals, rice, pasta, mixes and syrups, granola bars, grits, oat squares, oatmeal, rice cakes, simply granola, and side dishes under the Aunt Jemima, Cap'n crunch, Life, Quaker Chewy, Quaker, and Rice-A-Roni brands.

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