PepsiCo (NASDAQ:PEP) Stock Price Down 2.9% Following Weak Earnings

PepsiCo, Inc. (NASDAQ:PEP) shares were down 2.9% during trading on Thursday following a dissappointing earnings announcement. The stock traded as low as $137.41 and last traded at $138.17. Approximately 3,709,326 shares were traded during mid-day trading, a decline of 39% from the average daily volume of 6,099,176 shares. The stock had previously closed at $142.26.

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

PepsiCo Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Investors of record on Friday, March 7th were issued a $1.355 dividend. The ex-dividend date was Friday, March 7th. This represents a $5.42 dividend on an annualized basis and a yield of 4.01%. PepsiCo’s dividend payout ratio (DPR) is presently 77.99%.

Analyst Upgrades and Downgrades

Several research analysts recently issued reports on PEP shares. TD Cowen lowered their target price on PepsiCo from $183.00 to $160.00 and set a “hold” rating for the company in a research report on Wednesday, January 8th. Royal Bank of Canada reaffirmed a “sector perform” rating and issued a $163.00 price objective on shares of PepsiCo in a research note on Tuesday. Morgan Stanley decreased their target price on shares of PepsiCo from $185.00 to $168.00 and set an “equal weight” rating for the company in a research report on Wednesday, February 5th. BNP Paribas dropped their price target on shares of PepsiCo from $162.00 to $160.00 and set a “neutral” rating on the stock in a research report on Tuesday, February 4th. Finally, Jefferies Financial Group cut shares of PepsiCo from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $171.00 to $170.00 in a research report on Wednesday, March 12th. One analyst has rated the stock with a sell rating, fourteen have issued a hold rating and four have given a buy rating to the stock. Based on data from MarketBeat, PepsiCo presently has an average rating of “Hold” and an average target price of $165.50.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Collier Financial acquired a new position in PepsiCo during the 4th quarter valued at about $28,000. WealthTrak Capital Management LLC purchased a new position in shares of PepsiCo during the fourth quarter valued at approximately $28,000. Creative Capital Management Investments LLC purchased a new stake in PepsiCo in the 4th quarter valued at $30,000. Prudent Man Investment Management Inc. bought a new position in PepsiCo during the 4th quarter valued at $30,000. Finally, Measured Risk Portfolios Inc. purchased a new position in PepsiCo during the 4th quarter worth $31,000. 73.07% of the stock is owned by institutional investors.

PepsiCo Stock Performance

The company has a debt-to-equity ratio of 2.05, a current ratio of 0.82 and a quick ratio of 0.65. The company’s fifty day moving average price is $147.91 and its 200 day moving average price is $154.18. The company has a market cap of $185.55 billion, a PE ratio of 19.47, a P/E/G ratio of 3.09 and a beta of 0.49.

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.