PepsiCo (NASDAQ:PEP) Stock Price Down 1.2% – Here’s Why

PepsiCo, Inc. (NASDAQ:PEP)’s share price was down 1.2% on Thursday. The company traded as low as $142.14 and last traded at $142.26. 8,076,486 shares traded hands during trading, a decline of 2% from the average daily volume of 8,267,291 shares. The stock had previously closed at $143.94.

Latest PepsiCo News

These are some of the PEP news items that stood out recently:

• Positive Sentiment: PepsiCo plans to eliminate about 1,000 North American jobs as part of a push to simplify operations and improve productivity, amid pressure from activist investor Elliott Investment Management. The cost savings and a more streamlined organization could support performance; one report said the shares gained on the restructuring news. PepsiCo plans 1,000 North America job cuts
• Neutral Sentiment: The company is introducing holiday-season flavors across Lay’s, Doritos, Cheetos and Pepsi. New products may help attract shoppers, though the report does not indicate their expected sales impact. PepsiCo launches new holiday flavors
• Negative Sentiment: The job cuts also highlight challenges in North America, including sluggish sales and lower beverage volumes as some consumers shift away from sugary drinks. That demand weakness could limit growth and means the turnaround may take time to show results. PepsiCo to cut about 1,000 North American jobs

Analysts Set New Price Targets

A number of research firms recently issued reports on PEP. Jefferies Financial Group restated a “hold” rating on shares of PepsiCo in a research report on Thursday, October 8th. Weiss Ratings cut PepsiCo from a “hold (c)” rating to a “hold (c-)” rating in a research note on Thursday, September 24th. Citigroup reissued a “buy” rating on shares of PepsiCo in a report on Friday, October 9th. JPMorgan Chase & Co. lowered their price target on shares of PepsiCo from $138.00 to $137.00 and set a “neutral” rating for the company in a research report on Friday, October 9th. Finally, Barclays lowered their price target on shares of PepsiCo from $133.00 to $126.00 and set an “equal weight” rating for the company in a research report on Monday, October 12th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, PepsiCo presently has a consensus rating of “Hold” and an average price target of $143.28.

PepsiCo Stock Performance

The firm has a market capitalization of $193.86 billion, a price-to-earnings ratio of 17.87, a P/E/G ratio of 4.27 and a beta of 0.31. The company has a 50-day moving average price of $133.49 and a 200-day moving average price of $145.71. The company has a quick ratio of 0.76, a current ratio of 0.94 and a debt-to-equity ratio of 1.90.

PepsiCo (NASDAQ:PEP) last released its quarterly earnings results on Wednesday, October 7th. The company reported $2.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.29 by $0.05. The company had revenue of $25.27 billion during the quarter, compared to analysts’ expectations of $24.95 billion. PepsiCo had a return on equity of 53.08% and a net margin of 11.09%. The company’s revenue for the quarter was up 5.6% compared to the same quarter last year. During the same quarter in the prior year, the business posted $2.29 earnings per share. As a group, equities research analysts forecast that PepsiCo, Inc. will post 8.42 earnings per share for the current year.

Insider Activity

In related news, CEO Ramon Laguarta sold 30,000 shares of the stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $135.13, for a total value of $4,053,900.00. Following the completion of the transaction, the chief executive officer owned 491,645 shares in the company, valued at $66,435,988.85. This represents a 5.75% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Robert Pohlad bought 184,646 shares of the stock in a transaction on Wednesday, October 14th. The shares were bought at an average cost of $128.28 per share, for a total transaction of $23,686,388.88. Following the purchase, the director owned 433,009 shares in the company, valued at $55,546,394.52. This trade represents a 74.35% increase in their position. The SEC filing for this purchase provides additional information. Corporate insiders own 0.12% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Evergreen Advisors LLC bought a new position in PepsiCo during the 1st quarter valued at $25,000. Montgomery Financial Services LLC bought a new stake in shares of PepsiCo in the 2nd quarter worth $25,000. Next Level Wealth Planning LLC bought a new stake in shares of PepsiCo in the 3rd quarter worth $26,000. Atlatl Advisers LLC acquired a new stake in shares of PepsiCo in the second quarter valued at $31,000. Finally, Osterweis Capital Management Inc. bought a new position in PepsiCo during the second quarter valued at about $31,000. Institutional investors and hedge funds own 73.07% of the company’s stock.

About PepsiCo

PepsiCo, Inc. is a global food and beverage company that develops, manufactures, markets and distributes a broad range of products. Its portfolio includes snacks such as Lay’s, Doritos and Cheetos, as well as beverages including Pepsi, Gatorade and Mountain Dew. The company was formed in 1965 through the merger of Pepsi-Cola and Frito-Lay. Its products are sold in more than 200 countries and territories through retail, food-service and other distribution channels. PepsiCo is headquartered in Purchase, New York.