PepsiCo, Inc. (NASDAQ:PEP) Receives $165.28 Consensus Target Price from Analysts

PepsiCo, Inc. (NASDAQ:PEP) has received an average rating of “Hold” from the nineteen ratings firms that are currently covering the stock, Marketbeat.com reports. One research analyst has rated the stock with a sell recommendation, ten have assigned a hold recommendation and eight have given a buy recommendation to the company. The average 1 year target price among brokers that have covered the stock in the last year is $167.1579.

Several analysts have commented on PEP shares. Evercore ISI raised their price objective on shares of PepsiCo from $152.00 to $165.00 in a report on Wednesday, February 4th. UBS Group reaffirmed a “buy” rating and issued a $190.00 target price on shares of PepsiCo in a report on Wednesday, February 4th. DZ Bank raised PepsiCo from a “hold” rating to a “buy” rating and set a $167.00 price objective on the stock in a research report on Tuesday, October 21st. BNP Paribas Exane set a $191.00 target price on shares of PepsiCo in a report on Wednesday, February 4th. Finally, Citigroup boosted their price target on PepsiCo from $170.00 to $182.00 and gave the company a “buy” rating in a research note on Wednesday, February 4th.

PepsiCo Stock Down 2.4%

Shares of PEP opened at $166.47 on Thursday. The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.67. PepsiCo has a 1 year low of $127.60 and a 1 year high of $170.75. The stock has a 50 day simple moving average of $147.99 and a two-hundred day simple moving average of $146.46. The firm has a market cap of $227.51 billion, a P/E ratio of 27.75, a P/E/G ratio of 3.26 and a beta of 0.40.

PepsiCo (NASDAQ:PEP) last posted its quarterly earnings results on Tuesday, February 3rd. The company reported $2.26 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.24 by $0.02. The business had revenue of $29.34 billion for the quarter, compared to analyst estimates of $28.96 billion. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.PepsiCo’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same period last year, the company earned $1.96 EPS. PepsiCo has set its FY 2026 guidance at 8.550-8.710 EPS. On average, analysts forecast that PepsiCo will post 8.3 earnings per share for the current fiscal year.

PepsiCo Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Friday, March 6th will be paid a dividend of $1.4225 per share. The ex-dividend date is Friday, March 6th. This represents a $5.69 dividend on an annualized basis and a dividend yield of 3.4%. PepsiCo’s payout ratio is 94.83%.

PepsiCo declared that its board has authorized a share repurchase program on Tuesday, February 3rd that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the company to reacquire up to 4.7% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Institutional Trading of PepsiCo

Hedge funds have recently modified their holdings of the company. JCIC Asset Management Inc. purchased a new stake in shares of PepsiCo during the 3rd quarter worth about $27,000. MH & Associates Securities Management Corp ADV acquired a new stake in PepsiCo during the 4th quarter worth $29,000. Evolution Wealth Management Inc. acquired a new stake in PepsiCo in the 2nd quarter valued at about $27,000. Imprint Wealth LLC purchased a new position in PepsiCo during the third quarter worth approximately $31,000. Finally, Mowery & Schoenfeld Wealth Management LLC purchased a new stake in PepsiCo in the 4th quarter valued at $33,000. 73.07% of the stock is owned by hedge funds and other institutional investors.

About PepsiCo

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.