PepsiCo (NASDAQ:PEP) Stock Price Up 1.2% – Here’s What Happened

PepsiCo, Inc. (NASDAQ:PEP)’s stock price shot up 1.2% during mid-day trading on Tuesday. The stock traded as high as $143.71 and last traded at $143.61. 6,848,973 shares changed hands during mid-day trading, a decline of 17% from the average session volume of 8,247,132 shares. The stock had previously closed at $141.88.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo is emphasizing zero-sugar drinks, flavored sodas and functional hydration to address changing consumer preferences and support beverage demand. Can PepsiCo’s Zero-Sugar Strategy Strengthen Beverage Demand?
• Positive Sentiment: The company renewed overseas beverage-supply agreements with KFC across eight markets, retaining an important international distribution channel. PepsiCo renews overseas KFC contracts
• Neutral Sentiment: PepsiCo plans to eliminate roughly 1,000 North American roles as it streamlines operations and brings teams closer together. Lower costs could help execution and margins, though the savings may take time to materialize. PepsiCo to cut about 1,000 jobs as North American business struggles
• Negative Sentiment: The cuts are tied to struggling North American sales, while reports also point to a lower earnings outlook and a turnaround that has yet to take hold. These demand and execution concerns may weigh on investor sentiment. PepsiCo (PEP) Cuts 1,000 Jobs as North American Sales Struggle

Analysts Set New Price Targets

Several research firms have weighed in on PEP. BNP Paribas Exane lowered their price objective on shares of PepsiCo from $161.00 to $157.00 and set an “outperform” rating on the stock in a report on Friday, October 9th. Barclays reduced their price objective on shares of PepsiCo from $133.00 to $126.00 and set an “equal weight” rating for the company in a report on Monday, October 12th. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and set a $132.00 target price on shares of PepsiCo in a research report on Friday, October 9th. Weiss Ratings lowered shares of PepsiCo from a “hold (c)” rating to a “hold (c-)” rating in a report on Thursday, September 24th. Finally, Jefferies Financial Group restated a “hold” rating on shares of PepsiCo in a report on Thursday, October 8th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, fourteen have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Hold” and an average target price of $143.28.

PepsiCo Trading Up 1.2%

The company has a debt-to-equity ratio of 1.90, a current ratio of 0.94 and a quick ratio of 0.76. The company has a market capitalization of $195.70 billion, a P/E ratio of 18.04, a price-to-earnings-growth ratio of 4.24 and a beta of 0.31. The firm has a fifty day moving average price of $133.35 and a 200-day moving average price of $145.72.

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

Insider Buying and Selling at PepsiCo

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

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Bogart Wealth LLC raised its holdings in shares of PepsiCo by 5.6% in the 3rd quarter. Bogart Wealth LLC now owns 4,259 shares of the company’s stock worth $540,000 after purchasing an additional 225 shares during the period. South Dakota Investment Council grew its holdings in PepsiCo by 52.6% during the third quarter. South Dakota Investment Council now owns 109,333 shares of the company’s stock valued at $13,855,000 after purchasing an additional 37,700 shares during the period. Garrison Point Advisors LLC grew its holdings in PepsiCo by 2.3% during the third quarter. Garrison Point Advisors LLC now owns 8,374 shares of the company’s stock valued at $1,061,000 after purchasing an additional 186 shares during the period. Legacy Financial Group LLC purchased a new stake in PepsiCo in the third quarter worth $291,000. Finally, Sompo Asset Management Co. Ltd. increased its position in PepsiCo by 27.7% in the third quarter. Sompo Asset Management Co. Ltd. now owns 2,566 shares of the company’s stock worth $325,000 after buying an additional 556 shares during the last quarter. 73.07% of the stock is owned by institutional investors.

PepsiCo Company Profile

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.