PepsiCo (NASDAQ:PEP) Hits New 12-Month Low on Disappointing Earnings

PepsiCo, Inc. (NASDAQ:PEP) hit a new 52-week low on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $137.41 and last traded at $138.10, with a volume of 2509386 shares traded. The stock had previously closed at $142.26.

The company reported $1.48 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.52 by ($0.04). PepsiCo had a net margin of 10.43% and a return on equity of 58.87%. The business had revenue of $17.92 billion during the quarter, compared to analysts’ expectations of $17.81 billion.

PepsiCo Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Friday, March 7th were paid a dividend of $1.355 per share. The ex-dividend date was Friday, March 7th. This represents a $5.42 annualized dividend and a dividend yield of 4.01%. PepsiCo’s dividend payout ratio is currently 77.99%.

Analysts Set New Price Targets

A number of analysts recently issued reports on PEP shares. JPMorgan Chase & Co. raised their target price on shares of PepsiCo from $158.00 to $159.00 and gave the stock a “neutral” rating in a research report on Monday. BNP Paribas lowered their price objective on PepsiCo from $162.00 to $160.00 and set a “neutral” rating for the company in a research report on Tuesday, February 4th. HSBC dropped their target price on PepsiCo from $186.00 to $170.00 and set a “hold” rating for the company in a research note on Tuesday, February 4th. Piper Sandler started coverage on PepsiCo in a report on Tuesday, January 7th. They issued an “overweight” rating and a $171.00 price target for the company. Finally, TD Cowen cut their price objective on shares of PepsiCo from $183.00 to $160.00 and set a “hold” rating on the stock in a report on Wednesday, January 8th. One research analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and four have assigned a buy rating to the company’s stock. According to data from MarketBeat, PepsiCo currently has a consensus rating of “Hold” and a consensus target price of $165.50.

Institutional Investors Weigh In On PepsiCo

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in shares of PepsiCo during the fourth quarter worth approximately $2,729,565,000. GAMMA Investing LLC boosted its stake in PepsiCo by 19,106.5% during the 1st quarter. GAMMA Investing LLC now owns 4,588,614 shares of the company’s stock valued at $688,017,000 after acquiring an additional 4,564,723 shares during the last quarter. Raymond James Financial Inc. acquired a new position in PepsiCo during the 4th quarter worth $589,307,000. Charles Schwab Investment Management Inc. raised its stake in shares of PepsiCo by 18.1% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 25,217,043 shares of the company’s stock valued at $3,834,504,000 after purchasing an additional 3,856,193 shares in the last quarter. Finally, Franklin Resources Inc. lifted its position in shares of PepsiCo by 21.1% during the third quarter. Franklin Resources Inc. now owns 13,021,316 shares of the company’s stock worth $2,293,049,000 after purchasing an additional 2,264,445 shares during the last quarter. Hedge funds and other institutional investors own 73.07% of the company’s stock.

PepsiCo Stock Down 4.9 %

The company has a quick ratio of 0.65, a current ratio of 0.82 and a debt-to-equity ratio of 2.05. The firm has a market capitalization of $185.55 billion, a price-to-earnings ratio of 19.47, a P/E/G ratio of 3.09 and a beta of 0.49. The stock has a 50 day moving average of $147.91 and a 200 day moving average of $154.18.

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.