PepsiCo (NASDAQ:PEP) Trading Up 1.8% After Strong Earnings

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

The company reported $2.28 earnings per share for the quarter, topping analysts’ consensus estimates of $2.16 by $0.12. The business had revenue of $22.50 billion during the quarter, compared to analysts’ expectations of $22.59 billion. PepsiCo had a return on equity of 57.37% and a net margin of 10.00%. The company’s revenue was up .8% compared to the same quarter last year. During the same period in the prior year, the business posted $2.09 EPS.

PepsiCo Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, June 28th. Stockholders of record on Friday, June 7th were issued a $1.355 dividend. This is a positive change from PepsiCo’s previous quarterly dividend of $1.27. This represents a $5.42 annualized dividend and a dividend yield of 3.25%. The ex-dividend date was Friday, June 7th. PepsiCo’s dividend payout ratio is currently 81.50%.

Wall Street Analyst Weigh In

A number of research analysts have commented on PEP shares. JPMorgan Chase & Co. upped their price target on PepsiCo from $181.00 to $184.00 and gave the stock a “neutral” rating in a research note on Wednesday, June 26th. Wedbush reissued an “outperform” rating and set a $195.00 target price on shares of PepsiCo in a research note on Tuesday, April 23rd. Morgan Stanley upgraded shares of PepsiCo from an “equal weight” rating to an “overweight” rating and set a $190.00 price target on the stock in a research note on Monday, March 18th. TD Cowen lowered their price objective on shares of PepsiCo from $200.00 to $190.00 and set a “buy” rating for the company in a research note on Wednesday, July 3rd. Finally, Barclays cut their target price on shares of PepsiCo from $185.00 to $180.00 and set an “overweight” rating on the stock in a research note on Wednesday, June 12th. Seven analysts have rated the stock with a hold rating and eight have given a buy rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $185.80.

Insider Activity at PepsiCo

In related news, CEO Ramkumar Krishnan sold 5,620 shares of the stock in a transaction 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 transaction, the chief executive officer now directly owns 53,953 shares of the company’s stock, valued at approximately $9,603,634. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. 0.15% of the stock is currently owned by corporate insiders.

Institutional Trading of PepsiCo

A number of large investors have recently made changes to their positions in the company. Capital Advisors Ltd. LLC lifted its position in PepsiCo by 3.6% during the 1st quarter. Capital Advisors Ltd. LLC now owns 3,961 shares of the company’s stock worth $693,000 after acquiring an additional 139 shares during the period. Cerity Partners LLC lifted its position in PepsiCo by 59.4% in the fourth quarter. Cerity Partners LLC now owns 993,567 shares of the company’s stock valued at $168,747,000 after purchasing an additional 370,122 shares during the period. Harbour Capital Advisors LLC boosted its holdings in PepsiCo by 0.4% in the 4th quarter. Harbour Capital Advisors LLC now owns 27,446 shares of the company’s stock valued at $4,747,000 after purchasing an additional 102 shares in the last quarter. Meadow Creek Wealth Advisors LLC purchased a new stake in shares of PepsiCo in the fourth quarter valued at approximately $405,000. Finally, Householder Group Estate & Retirement Specialist LLC grew its holdings in PepsiCo by 34.5% during the fourth quarter. Householder Group Estate & Retirement Specialist LLC now owns 12,317 shares of the company’s stock worth $2,091,000 after acquiring an additional 3,159 shares during the period. 73.07% of the stock is owned by institutional investors and hedge funds.

PepsiCo Price Performance

The stock has a market cap of $229.38 billion, a PE ratio of 25.11, a PEG ratio of 2.84 and a beta of 0.52. The company has a 50-day simple moving average of $171.12 and a 200-day simple moving average of $169.99. The company has a debt-to-equity ratio of 1.96, a current ratio of 0.86 and a quick ratio of 0.68.

PepsiCo Company Profile

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.