PepsiCo (NASDAQ:PEP) Board Declares Share Buyback Program

PepsiCo (NASDAQ:PEP) announced that its Board of Directors has authorized a share repurchase plan, which allows the company to buyback $15.00 billion in shares on Tuesday, February 13th, EventVestor reports. This buyback authorization allows the company to reacquire shares of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its shares are undervalued.

PEP has been the subject of several research reports. BidaskClub lowered PepsiCo from a “buy” rating to a “hold” rating in a research report on Thursday, January 11th. Stifel Nicolaus reissued a “hold” rating and issued a $120.00 price target on shares of PepsiCo in a report on Friday, December 22nd. Jefferies Group reaffirmed a “hold” rating and set a $113.00 target price on shares of PepsiCo in a research note on Tuesday, February 13th. SunTrust Banks cut their target price on PepsiCo from $125.00 to $115.00 and set a “hold” rating on the stock in a research note on Wednesday, February 14th. Finally, JPMorgan Chase & Co. dropped their price objective on PepsiCo from $127.00 to $124.00 and set an “overweight” rating on the stock in a research note on Wednesday, February 14th. One analyst has rated the stock with a sell rating, nine have issued a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has a consensus rating of “Hold” and a consensus target price of $123.04.

Shares of PepsiCo (NASDAQ PEP) opened at $109.68 on Friday. PepsiCo has a 12-month low of $106.19 and a 12-month high of $122.51. The firm has a market capitalization of $155,735.50, a PE ratio of 20.97, a price-to-earnings-growth ratio of 2.75 and a beta of 0.62. The company has a debt-to-equity ratio of 3.03, a current ratio of 1.51 and a quick ratio of 1.37.

PepsiCo (NASDAQ:PEP) last announced its quarterly earnings results on Tuesday, February 13th. The company reported $1.31 earnings per share for the quarter, topping analysts’ consensus estimates of $1.30 by $0.01. PepsiCo had a return on equity of 61.14% and a net margin of 7.65%. The company had revenue of $19.53 billion during the quarter, compared to analysts’ expectations of $19.40 billion. During the same quarter in the previous year, the firm earned $1.20 earnings per share. The business’s quarterly revenue was up .1% compared to the same quarter last year. sell-side analysts expect that PepsiCo will post 5.69 EPS for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 30th. Investors of record on Friday, March 2nd will be given a dividend of $0.805 per share. The ex-dividend date is Thursday, March 1st. This represents a $3.22 annualized dividend and a dividend yield of 2.94%. PepsiCo’s dividend payout ratio is presently 95.55%.

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PepsiCo Company Profile

PepsiCo, Inc is a global food and beverage company. The Company’s portfolio of brands includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. The Company operates through six segments: Frito-Lay North America (FLNA), Quaker Foods North America (QFNA), North America Beverages (NAB), Latin America, Europe Sub-Saharan Africa (ESSA), and Asia, Middle East and North Africa (AMENA).

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