PepsiCo (NASDAQ:PEP) Shares Up 0.9% on Strong Earnings

PepsiCo, Inc. (NASDAQ:PEP) shot up 0.9% on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $173.41 and last traded at $172.74. 1,831,636 shares changed hands during trading, a decline of 68% from the average session volume of 5,747,046 shares. The stock had previously closed at $171.22.

The company reported $1.61 earnings per share for the quarter, topping analysts’ consensus estimates of $1.52 by $0.09. The company had revenue of $18.25 billion for the quarter, compared to analysts’ expectations of $18.08 billion. PepsiCo had a net margin of 9.92% and a return on equity of 58.03%. The business’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same period last year, the firm posted $1.50 earnings per share.

PepsiCo Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, April 1st. Investors of record on Friday, March 1st were given a $1.265 dividend. The ex-dividend date of this dividend was Thursday, February 29th. This represents a $5.06 annualized dividend and a yield of 2.85%. PepsiCo’s dividend payout ratio is currently 77.02%.

Wall Street Analysts Forecast Growth

Several equities research analysts recently commented on the stock. JPMorgan Chase & Co. boosted their price objective on shares of PepsiCo from $178.00 to $181.00 and gave the company a “neutral” rating in a research report on Wednesday. Wedbush reiterated an “outperform” rating and issued a $195.00 price target on shares of PepsiCo in a research note on Tuesday. 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. Barclays lifted their price target on shares of PepsiCo from $183.00 to $184.00 and gave the company an “overweight” rating in a research note on Friday, April 12th. Finally, Deutsche Bank Aktiengesellschaft lifted their price target on shares of PepsiCo from $181.00 to $184.00 and gave the company a “hold” rating in a research note on Friday, February 9th. Six equities research analysts have rated the stock with a hold rating and six have given a buy rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $187.33.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Private Trust Co. NA grew its stake in PepsiCo by 6.3% in the 1st quarter. Private Trust Co. NA now owns 35,251 shares of the company’s stock valued at $6,169,000 after buying an additional 2,101 shares during the last quarter. Leavell Investment Management Inc. grew its stake in PepsiCo by 0.9% in the 1st quarter. Leavell Investment Management Inc. now owns 19,381 shares of the company’s stock valued at $3,416,000 after buying an additional 177 shares during the last quarter. Zhang Financial LLC grew its stake in PepsiCo by 1.0% in the 1st quarter. Zhang Financial LLC now owns 18,999 shares of the company’s stock valued at $3,325,000 after buying an additional 195 shares during the last quarter. V Square Quantitative Management LLC grew its stake in PepsiCo by 1.1% in the 1st quarter. V Square Quantitative Management LLC now owns 16,400 shares of the company’s stock valued at $2,870,000 after buying an additional 180 shares during the last quarter. Finally, Alta Advisers Ltd grew its stake in PepsiCo by 5.7% in the 1st quarter. Alta Advisers Ltd now owns 3,700 shares of the company’s stock valued at $648,000 after buying an additional 200 shares during the last quarter. 73.07% of the stock is currently owned by institutional investors and hedge funds.

PepsiCo Stock Performance

The firm has a market cap of $243.85 billion, a price-to-earnings ratio of 27.00, a price-to-earnings-growth ratio of 2.77 and a beta of 0.53. The stock’s 50 day moving average is $169.04 and its 200 day moving average is $167.70. The company has a current ratio of 0.85, a quick ratio of 0.68 and a debt-to-equity ratio of 2.02.

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.