PepsiCo (NASDAQ:PEP) Shares Gap Up Following Better-Than-Expected Earnings

PepsiCo, Inc. (NASDAQ:PEP)’s share price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $135.35, but opened at $141.70. PepsiCo shares last traded at $144.10, with a volume of 9,332,095 shares traded.

The company reported $2.12 EPS for the quarter, topping analysts’ consensus estimates of $2.03 by $0.09. PepsiCo had a return on equity of 58.28% and a net margin of 10.24%. The company had revenue of $22.73 billion for the quarter, compared to the consensus estimate of $22.28 billion. During the same period in the previous year, the business earned $2.28 earnings per share. PepsiCo’s quarterly revenue was up 1.0% compared to the same quarter last year.

PepsiCo Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 6th were given a dividend of $1.4225 per share. The ex-dividend date was Friday, June 6th. This is a boost from PepsiCo’s previous quarterly dividend of $1.36. This represents a $5.69 annualized dividend and a dividend yield of 3.91%. PepsiCo’s dividend payout ratio (DPR) is 83.68%.

Analyst Upgrades and Downgrades

Several equities analysts have weighed in on PEP shares. Bank of America cut their target price on PepsiCo from $150.00 to $145.00 and set a “neutral” rating on the stock in a report on Friday, July 11th. Cowen reiterated a “hold” rating on shares of PepsiCo in a research note on Thursday. UBS Group lowered their price target on PepsiCo from $175.00 to $169.00 and set a “buy” rating on the stock in a research note on Friday, April 25th. JPMorgan Chase & Co. decreased their price objective on PepsiCo from $150.00 to $139.00 and set a “neutral” rating on the stock in a report on Thursday, July 10th. Finally, Morgan Stanley reissued an “equal weight” rating on shares of PepsiCo in a report on Thursday. One analyst has rated the stock with a sell rating, sixteen have issued a hold rating and four have given a buy rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $158.00.

Institutional Investors Weigh In On PepsiCo

Hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. raised its stake in shares of PepsiCo by 1.4% in the first quarter. Vanguard Group Inc. now owns 135,174,252 shares of the company’s stock valued at $20,268,027,000 after acquiring an additional 1,802,748 shares during the period. Geode Capital Management LLC grew its holdings in shares of PepsiCo by 1.9% in the fourth quarter. Geode Capital Management LLC now owns 31,079,522 shares of the company’s stock worth $4,717,069,000 after purchasing an additional 582,254 shares during the last quarter. Charles Schwab Investment Management Inc. grew its holdings in shares of PepsiCo by 5.0% in the first quarter. Charles Schwab Investment Management Inc. now owns 26,475,241 shares of the company’s stock worth $3,969,698,000 after purchasing an additional 1,258,198 shares during the last quarter. Norges Bank bought a new position in shares of PepsiCo in the fourth quarter worth about $2,729,565,000. Finally, Northern Trust Corp grew its holdings in shares of PepsiCo by 8.7% in the fourth quarter. Northern Trust Corp now owns 16,403,395 shares of the company’s stock worth $2,494,300,000 after purchasing an additional 1,306,818 shares during the last quarter. Hedge funds and other institutional investors own 73.07% of the company’s stock.

PepsiCo Trading Up 7.5%

The stock’s fifty day moving average price is $131.97 and its 200 day moving average price is $141.24. The company has a debt-to-equity ratio of 2.13, a current ratio of 0.83 and a quick ratio of 0.65. The stock has a market capitalization of $199.41 billion, a P/E ratio of 21.39, a PEG ratio of 4.23 and a beta of 0.45.

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.