PepsiCo (NASDAQ:PEP) Stock Price Up 3.1% – Should You Buy?
by Michael Walen · The Markets DailyPepsiCo, Inc. (NASDAQ:PEP – Get Free Report)’s stock price was up 3.1% during trading on Thursday. The stock traded as high as $139.00 and last traded at $138.83. 9,364,481 shares changed hands during trading, an increase of 15% from the average session volume of 8,173,290 shares. The stock had previously closed at $134.70.
Key Headlines Impacting PepsiCo
Here are the key news stories impacting PepsiCo this week:
- Positive Sentiment: Long-term Taco Bell renewal: PepsiCo extended its U.S. and selected international beverage partnership with Taco Bell through 2036. The agreement protects distribution for brands including Mountain Dew Baja Blast and includes plans for new crafted, functional and energy beverages. Taco Bell and PepsiCo partnership announcement
- Positive Sentiment: Important customer win after KFC loss: Taco Bell’s decision provides PepsiCo with a high-profile restaurant partner and a competitive victory over Coca-Cola, helping reassure investors about its fountain and foodservice business. Pepsi renews Taco Bell contract
- Positive Sentiment: Growth initiatives: New Good Warrior protein bars, Quaker snack products in India and PepsiCo’s multipack snack business could broaden its portfolio and respond to demand for convenient, higher-protein and portion-controlled products. PepsiCo Good Warrior protein bars
- Positive Sentiment: Valuation appeal: Commentary highlighted that PEP trades significantly below its 52-week high and may offer contrarian value if North American beverage and snack volumes improve. PepsiCo contrarian opportunity
Wall Street Analysts Forecast Growth
A number of equities research analysts recently weighed in on the stock. JPMorgan Chase & Co. lowered their target price on shares of PepsiCo from $138.00 to $137.00 and set a “neutral” rating on the stock in a report on Friday, October 9th. Evercore decreased their price objective on PepsiCo from $150.00 to $135.00 in a report on Wednesday, September 30th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $132.00 price objective on shares of PepsiCo in a research note on Friday, October 9th. Citigroup restated a “buy” rating on shares of PepsiCo in a report on Friday, October 9th. Finally, Sanford C. Bernstein restated a “market perform” rating on shares of PepsiCo in a report on Friday, October 9th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $144.37.
PepsiCo Stock Performance
The company’s fifty day moving average price is $134.15 and its 200 day moving average price is $141.57. The company has a market cap of $189.19 billion, a PE ratio of 17.44, a P/E/G ratio of 3.99 and a beta of 0.35. The company has a debt-to-equity ratio of 1.90, a current ratio of 0.94 and a quick ratio of 0.76.
PepsiCo (NASDAQ:PEP – Get Free Report) last released its quarterly earnings results on Wednesday, October 7th. The company reported $2.34 earnings per share for the quarter, topping the consensus estimate of $2.29 by $0.05. PepsiCo had a net margin of 11.09% and a return on equity of 53.08%. The business had revenue of $25.27 billion for the quarter, compared to analysts’ expectations of $24.95 billion. During the same period in the previous year, the company earned $2.29 earnings per share. The firm’s revenue for the quarter was up 5.6% compared to the same quarter last year. On average, equities research analysts predict that PepsiCo, Inc. will post 8.41 earnings per share for the current year.
Insider Buying and Selling
In related news, EVP David Flavell sold 2,900 shares of the stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $139.54, for a total transaction of $404,666.00. Following the completion of the sale, the executive vice president directly owned 74,825 shares of the company’s stock, valued at approximately $10,441,080.50. This trade represents a 3.73% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Robert C. Pohlad purchased 184,646 shares of the firm’s stock in a transaction that occurred on Wednesday, October 14th. The shares were acquired at an average cost of $128.28 per share, with a total value of $23,686,388.88. Following the completion of the transaction, the director directly owned 433,009 shares of the company’s stock, valued at $55,546,394.52. The trade was a 74.35% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 0.12% of the stock is owned by insiders.
Institutional Inflows and Outflows
Several hedge funds and other institutional investors have recently bought and sold shares of the business. Onyx Bridge Wealth Group LLC increased its position in shares of PepsiCo by 2.5% during the 1st quarter. Onyx Bridge Wealth Group LLC now owns 2,673 shares of the company’s stock valued at $415,000 after purchasing an additional 66 shares during the last quarter. Wilkerson Advisory Group LLC raised its stake in shares of PepsiCo by 3.3% during the 1st quarter. Wilkerson Advisory Group LLC now owns 2,040 shares of the company’s stock worth $317,000 after purchasing an additional 66 shares during the period. Richards Merrill & Peterson Inc. boosted its holdings in shares of PepsiCo by 3.6% in the 1st quarter. Richards Merrill & Peterson Inc. now owns 1,938 shares of the company’s stock worth $301,000 after buying an additional 67 shares during the last quarter. Partners Wealth Management LLC boosted its holdings in shares of PepsiCo by 3.5% in the 1st quarter. Partners Wealth Management LLC now owns 1,998 shares of the company’s stock worth $310,000 after buying an additional 68 shares during the last quarter. Finally, Pittenger & Anderson Inc. grew its position in PepsiCo by 0.3% during the first quarter. Pittenger & Anderson Inc. now owns 24,895 shares of the company’s stock valued at $3,866,000 after buying an additional 69 shares during the period. Hedge funds and other institutional investors own 73.07% of the company’s stock.
PepsiCo Company Profile
PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company whose portfolio includes Pepsi-Cola, Mountain Dew, Gatorade, Lay’s, Doritos, Cheetos, Quaker, Tostitos, Fritos, and SodaStream. Its products span carbonated soft drinks, sports and energy beverages, bottled water, juices, convenient foods, snacks, and other packaged food offerings.
The company sells products through retail stores, restaurants, food-service providers, e-commerce platforms, and other distribution channels. PepsiCo serves consumers in North America and international markets across Latin America, Europe, Africa, the Middle East, and Asia-Pacific.