PepsiCo (NASDAQ:PEP) Trading 1.8% Higher on Earnings Beat

Shares of PepsiCo, Inc. (NASDAQ:PEP) were up 1.8% during mid-day trading on Friday following a better than expected earnings announcement. The stock traded as high as $167.10 and last traded at $166.97. Approximately 1,278,486 shares changed hands during mid-day trading, a decline of 77% from the average daily volume of 5,492,368 shares. The stock had previously closed at $163.95.

The company reported $2.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.16 by $0.12. PepsiCo had a net margin of 10.00% and a return on equity of 57.37%. The business had revenue of $22.50 billion during the quarter, compared to the consensus estimate of $22.59 billion. During the same period last year, the business posted $2.09 EPS. PepsiCo’s revenue was up .8% on a year-over-year basis.

PepsiCo Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 28th. Investors of record on Friday, June 7th were paid a $1.355 dividend. This is an increase from PepsiCo’s previous quarterly dividend of $1.27. This represents a $5.42 annualized dividend and a yield of 3.26%. The ex-dividend date was Friday, June 7th. PepsiCo’s dividend payout ratio (DPR) is 81.50%.

Analyst Ratings Changes

PEP has been the topic of several research analyst reports. Argus cut shares of PepsiCo from a “buy” rating to a “hold” rating in a report on Wednesday, April 3rd. Jefferies Financial Group lowered their price target on shares of PepsiCo from $210.00 to $200.00 and set a “buy” rating on the stock in a report on Tuesday. Wells Fargo & Company lowered their price target on shares of PepsiCo from $175.00 to $170.00 and set an “equal weight” rating on the stock in a report on Wednesday. Morgan Stanley lowered their price target on shares of PepsiCo from $190.00 to $185.00 and set an “overweight” rating on the stock in a report on Friday. Finally, Bank of America lowered their target price on shares of PepsiCo from $210.00 to $190.00 and set a “buy” rating on the stock in a report on Monday, July 8th. Seven research analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $185.27.

Insider Activity at PepsiCo

In other PepsiCo news, CEO Ramkumar Krishnan sold 5,620 shares of the firm’s stock in a transaction that occurred on Thursday, May 9th. The shares were sold at an average price of $178.00, for a total value of $1,000,360.00. Following the sale, the chief executive officer now owns 53,953 shares in the company, valued at $9,603,634. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.15% of the stock is currently owned by insiders.

Institutional Trading of PepsiCo

Hedge funds have recently added to or reduced their stakes in the stock. Charles Schwab Investment Management Inc. lifted its holdings in shares of PepsiCo by 3.1% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 19,001,928 shares of the company’s stock worth $3,227,287,000 after purchasing an additional 578,083 shares during the period. Norges Bank acquired a new position in PepsiCo in the fourth quarter valued at $2,686,139,000. California Public Employees Retirement System lifted its holdings in PepsiCo by 17.9% in the fourth quarter. California Public Employees Retirement System now owns 9,664,323 shares of the company’s stock valued at $1,641,389,000 after buying an additional 1,470,064 shares during the period. Franklin Resources Inc. lifted its holdings in PepsiCo by 17.7% in the fourth quarter. Franklin Resources Inc. now owns 8,954,951 shares of the company’s stock valued at $1,520,909,000 after buying an additional 1,345,065 shares during the period. Finally, Massachusetts Financial Services Co. MA lifted its holdings in PepsiCo by 15.1% in the fourth quarter. Massachusetts Financial Services Co. MA now owns 8,421,163 shares of the company’s stock valued at $1,430,250,000 after buying an additional 1,105,127 shares during the period. Institutional investors and hedge funds own 73.07% of the company’s stock.

PepsiCo Trading Up 1.5 %

The firm has a market cap of $228.74 billion, a price-to-earnings ratio of 25.02, a price-to-earnings-growth ratio of 2.84 and a beta of 0.52. The company has a debt-to-equity ratio of 1.96, a current ratio of 0.86 and a quick ratio of 0.68. The firm’s fifty day moving average is $170.93 and its 200-day moving average is $169.98.

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.