Share Buyback Program Declared by PepsiCo (PEP) Board

PepsiCo (NASDAQ:PEP) announced that its board has authorized a stock repurchase program, which allows the company to buyback $15.00 billion in shares on Tuesday, February 13th, EventVestor reports. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board of directors believes its shares are undervalued.

PepsiCo (NASDAQ:PEP) opened at $111.06 on Tuesday. PepsiCo has a 12 month low of $106.19 and a 12 month high of $122.51. The company has a market capitalization of $157,690.00, a price-to-earnings ratio of 21.82, a PEG ratio of 2.87 and a beta of 0.62. The company has a quick ratio of 1.37, a current ratio of 1.51 and a debt-to-equity ratio of 3.03.

PepsiCo (NASDAQ:PEP) last announced its quarterly earnings results on Tuesday, February 13th. The company reported $1.31 EPS for the quarter, beating the Zacks’ consensus estimate of $1.30 by $0.01. The company had revenue of $19.53 billion during the quarter, compared to analysts’ expectations of $19.40 billion. PepsiCo had a return on equity of 61.14% and a net margin of 7.65%. PepsiCo’s revenue was up .1% compared to the same quarter last year. During the same period in the prior year, the company earned $1.20 EPS. sell-side analysts predict that PepsiCo will post 5.69 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 30th. Investors of record on Friday, March 2nd will be issued a $0.805 dividend. The ex-dividend date is Thursday, March 1st. This represents a $3.22 dividend on an annualized basis and a yield of 2.90%. PepsiCo’s payout ratio is 63.26%.

Several equities research analysts have weighed in on PEP shares. Cowen restated a “buy” rating and set a $133.00 target price on shares of PepsiCo in a research note on Tuesday, January 9th. Zacks Investment Research upgraded PepsiCo from a “hold” rating to a “buy” rating and set a $123.00 price target for the company in a research note on Tuesday, October 31st. Deutsche Bank began coverage on PepsiCo in a research note on Wednesday, December 13th. They issued a “buy” rating and a $132.00 price target for the company. Jefferies Group reiterated a “hold” rating and issued a $113.00 price target on shares of PepsiCo in a research note on Thursday, January 4th. Finally, Stifel Nicolaus reiterated a “hold” rating and issued a $120.00 price target on shares of PepsiCo in a research note on Friday, December 22nd. One analyst has rated the stock with a sell rating, nine have given a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company. The company presently has an average rating of “Hold” and a consensus target price of $123.04.

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About PepsiCo

PepsiCo, Inc is a global food and beverage company. The Company’s portfolio of brands includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. The Company operates through six segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA), and Asia, Middle East and North Africa (AMENA).

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