PepsiCo (NASDAQ:PEP) Shares Up 0.7% on Earnings Beat

PepsiCo, Inc. (NASDAQ:PEP)’s share price shot up 0.7% during trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $144.35 and last traded at $144.48. 2,125,304 shares changed hands during trading, a decline of 68% from the average session volume of 6,669,610 shares. The stock had previously closed at $143.49.

The company reported $1.96 earnings per share for the quarter, topping analysts’ consensus estimates of $1.94 by $0.02. The firm had revenue of $27.78 billion during the quarter, compared to analysts’ expectations of $27.89 billion. PepsiCo had a net margin of 10.18% and a return on equity of 57.32%. The firm’s quarterly revenue was down .2% on a year-over-year basis. During the same quarter last year, the company posted $1.78 EPS.

PepsiCo Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Monday, January 6th. Stockholders of record on Friday, December 6th were given a dividend of $1.355 per share. This represents a $5.42 dividend on an annualized basis and a dividend yield of 3.75%. The ex-dividend date of this dividend was Friday, December 6th. PepsiCo’s dividend payout ratio is presently 79.94%.

Analyst Upgrades and Downgrades

Several equities analysts have commented on PEP shares. Redburn Atlantic upgraded shares of PepsiCo to a “strong sell” rating in a research note on Thursday, October 10th. Piper Sandler began coverage on shares of PepsiCo in a research note on Tuesday, January 7th. They set an “overweight” rating and a $171.00 price target on the stock. BNP Paribas dropped their price objective on PepsiCo from $162.00 to $160.00 and set a “neutral” rating on the stock in a report on Tuesday. Morgan Stanley decreased their target price on PepsiCo from $185.00 to $168.00 and set an “equal weight” rating for the company in a research report on Wednesday. Finally, Barclays decreased their price objective on PepsiCo from $183.00 to $158.00 and set an “overweight” rating for the company in a report on Friday, January 17th. One research analyst has rated the stock with a sell rating, ten have assigned a hold rating and nine have given a buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $171.76.

Institutional Investors Weigh In On PepsiCo

Several hedge funds have recently modified their holdings of the stock. Highline Wealth Partners LLC acquired a new position in shares of PepsiCo in the 3rd quarter valued at about $28,000. Collier Financial acquired a new position in PepsiCo during the fourth quarter valued at approximately $28,000. Legacy Investment Solutions LLC purchased a new stake in PepsiCo during the third quarter worth approximately $31,000. Rakuten Securities Inc. raised its stake in shares of PepsiCo by 93.2% in the 3rd quarter. Rakuten Securities Inc. now owns 199 shares of the company’s stock valued at $34,000 after acquiring an additional 96 shares during the period. Finally, Creative Capital Management Investments LLC purchased a new stake in PepsiCo during the 4th quarter worth $30,000. 73.07% of the stock is owned by institutional investors and hedge funds.

PepsiCo Trading Up 0.7 %

The firm has a market capitalization of $198.17 billion, a PE ratio of 21.29, a P/E/G ratio of 2.92 and a beta of 0.54. The company has a debt-to-equity ratio of 1.96, a quick ratio of 0.70 and a current ratio of 0.89. The firm has a fifty day moving average of $152.49 and a 200 day moving average of $164.53.

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.