PepsiCo (PEP) Earns “Overweight” Rating from Morgan Stanley

Morgan Stanley reaffirmed their overweight rating on shares of PepsiCo (NASDAQ:PEP) in a report released on Friday morning.

PEP has been the topic of a number of other research reports. BidaskClub lowered PepsiCo from a buy rating to a hold rating in a research report on Thursday, August 23rd. ValuEngine upgraded PepsiCo from a sell rating to a hold rating in a research report on Tuesday, July 10th. Zacks Investment Research lowered PepsiCo from a hold rating to a sell rating in a research report on Wednesday, June 27th. Guggenheim initiated coverage on PepsiCo in a research report on Thursday, September 13th. They set a neutral rating and a $117.00 target price on the stock. Finally, Susquehanna Bancshares decreased their target price on PepsiCo from $136.00 to $135.00 and set a positive rating on the stock in a research report on Friday, September 28th. Two research analysts have rated the stock with a sell rating, fourteen have given a hold rating and five have given a buy rating to the stock. The company presently has an average rating of Hold and a consensus target price of $117.89.

PepsiCo stock opened at $106.49 on Friday. The company has a debt-to-equity ratio of 3.00, a quick ratio of 1.09 and a current ratio of 1.24. PepsiCo has a 12 month low of $95.94 and a 12 month high of $122.51. The company has a market capitalization of $158.12 billion, a price-to-earnings ratio of 20.36, a P/E/G ratio of 2.63 and a beta of 0.67.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings data on Tuesday, October 2nd. The company reported $1.59 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $1.57 by $0.02. PepsiCo had a return on equity of 67.06% and a net margin of 7.14%. The business had revenue of $16.49 billion for the quarter, compared to analyst estimates of $16.38 billion. During the same quarter in the prior year, the firm posted $1.48 EPS. The business’s quarterly revenue was up 1.5% compared to the same quarter last year. Sell-side analysts expect that PepsiCo will post 5.69 earnings per share for the current year.

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 28th. Investors of record on Friday, September 7th were paid a $0.9275 dividend. This represents a $3.71 annualized dividend and a yield of 3.48%. The ex-dividend date of this dividend was Thursday, September 6th. PepsiCo’s dividend payout ratio is currently 70.94%.

In related news, CEO Laxman Narasimhan sold 5,500 shares of the stock in a transaction on Thursday, October 4th. The stock was sold at an average price of $106.79, for a total value of $587,345.00. Following the completion of the transaction, the chief executive officer now directly owns 130,135 shares of the company’s stock, valued at approximately $13,897,116.65. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 0.27% of the stock is currently owned by corporate insiders.

A number of hedge funds and other institutional investors have recently bought and sold shares of PEP. Fiera Capital Corp increased its stake in shares of PepsiCo by 5.3% in the 1st quarter. Fiera Capital Corp now owns 3,512,114 shares of the company’s stock worth $383,347,000 after acquiring an additional 177,748 shares during the last quarter. Bruderman Asset Management LLC increased its stake in shares of PepsiCo by 3.9% in the 1st quarter. Bruderman Asset Management LLC now owns 59,583 shares of the company’s stock worth $6,503,000 after acquiring an additional 2,255 shares during the last quarter. Patriot Wealth Management Inc. increased its stake in shares of PepsiCo by 3.1% in the 2nd quarter. Patriot Wealth Management Inc. now owns 43,785 shares of the company’s stock worth $4,767,000 after acquiring an additional 1,297 shares during the last quarter. World Asset Management Inc increased its stake in shares of PepsiCo by 2.9% in the 2nd quarter. World Asset Management Inc now owns 102,760 shares of the company’s stock worth $11,187,000 after acquiring an additional 2,917 shares during the last quarter. Finally, Transamerica Financial Advisors Inc. increased its stake in shares of PepsiCo by 2.6% in the 1st quarter. Transamerica Financial Advisors Inc. now owns 30,387 shares of the company’s stock worth $3,317,000 after acquiring an additional 771 shares during the last quarter. 70.45% of the stock is owned by hedge funds and other institutional investors.

PepsiCo Company Profile

PepsiCo, Inc operates as a food and beverage company worldwide. Its Frito-Lay North America segment offers Lay's and Ruffles potato chips; Doritos, Tostitos, and Santitas tortilla chips; and Cheetos snacks, branded dips, and Fritos corn chips. The company's Quaker Foods North America segment provides cereals, rice, pasta, mixes and syrups, granola bars, grits, oat squares, oatmeal, rice cakes, simply granola, and side dishes under the brands Quaker, Aunt Jemima, Cap'n crunch, life, Quaker Chewy, and Rice-A-Roni.

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Analyst Recommendations for PepsiCo (NASDAQ:PEP)

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