Investors Sell PepsiCo (PEP) on Strength (PEP)

Investors sold shares of PepsiCo, Inc. (NASDAQ:PEP) on strength during trading hours on Thursday. $81.09 million flowed into the stock on the tick-up and $119.50 million flowed out of the stock on the tick-down, for a money net flow of $38.41 million out of the stock. Of all equities tracked, PepsiCo had the 16th highest net out-flow for the day. PepsiCo traded up $1.26 for the day and closed at $109.26

PEP has been the subject of several recent analyst reports. Zacks Investment Research cut shares of PepsiCo from a “buy” rating to a “hold” rating in a report on Monday, October 30th. Royal Bank of Canada reaffirmed a “hold” rating on shares of PepsiCo in a report on Sunday, November 12th. Deutsche Bank initiated coverage on shares of PepsiCo in a report on Wednesday, December 13th. They issued a “buy” rating and a $132.00 target price for the company. Stifel Nicolaus reaffirmed a “hold” rating and issued a $120.00 target price on shares of PepsiCo in a report on Friday, December 22nd. Finally, Wells Fargo & Co lifted their target price on shares of PepsiCo from $110.00 to $115.00 and gave the stock a “market perform” rating in a report on Thursday, January 4th. One investment analyst has rated the stock with a sell rating, nine have issued a hold rating, seven have issued a buy rating and one has given a strong buy rating to the stock. The stock presently has a consensus rating of “Hold” and a consensus price target of $123.04.

The company has a debt-to-equity ratio of 3.03, a quick ratio of 1.37 and a current ratio of 1.51. The firm has a market cap of $155,140.00, a price-to-earnings ratio of 21.47, a price-to-earnings-growth ratio of 2.75 and a beta of 0.62.

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

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 30th. Stockholders of record on Friday, March 2nd will be issued a dividend of $0.805 per share. The ex-dividend date is Thursday, March 1st. This represents a $3.22 annualized dividend and a dividend yield of 2.95%. PepsiCo’s payout ratio is 63.26%.

PepsiCo declared that its board has authorized a stock repurchase plan on Tuesday, February 13th that authorizes the company to buyback $15.00 billion in shares. This buyback authorization authorizes the company to repurchase shares of its stock through open market purchases. Shares buyback plans are typically a sign that the company’s leadership believes its shares are undervalued.

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Geode Capital Management LLC grew its position in PepsiCo by 8.5% during the fourth quarter. Geode Capital Management LLC now owns 16,678,262 shares of the company’s stock valued at $1,996,271,000 after buying an additional 1,305,279 shares during the period. Schwab Charles Investment Management Inc. grew its position in PepsiCo by 3.2% during the fourth quarter. Schwab Charles Investment Management Inc. now owns 8,126,159 shares of the company’s stock valued at $974,344,000 after buying an additional 252,631 shares during the period. UBS Asset Management Americas Inc. grew its position in PepsiCo by 0.6% during the fourth quarter. UBS Asset Management Americas Inc. now owns 7,174,653 shares of the company’s stock valued at $860,384,000 after buying an additional 41,529 shares during the period. APG Asset Management N.V. grew its position in PepsiCo by 6.6% during the fourth quarter. APG Asset Management N.V. now owns 6,708,832 shares of the company’s stock valued at $669,989,000 after buying an additional 413,900 shares during the period. Finally, Renaissance Technologies LLC grew its position in PepsiCo by 18.1% during the fourth quarter. Renaissance Technologies LLC now owns 6,497,262 shares of the company’s stock valued at $779,152,000 after buying an additional 996,562 shares during the period. 70.62% of the stock is owned by hedge funds and other institutional investors.

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PepsiCo Company Profile

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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