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

Shares of PepsiCo, Inc. (NASDAQ:PEP) rose 0.9% during mid-day trading on Wednesday following a stronger than expected earnings report. The stock traded as high as $173.41 and last traded at $172.74. Approximately 1,831,636 shares changed hands during trading, a decline of 68% from the average daily 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 the consensus estimate of $1.52 by $0.09. PepsiCo had a net margin of 9.92% and a return on equity of 58.03%. The company had revenue of $18.25 billion for the quarter, compared to the consensus estimate of $18.08 billion. During the same quarter in the prior year, the company earned $1.50 EPS. PepsiCo’s quarterly revenue was up 2.3% on a year-over-year basis.

PepsiCo Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, April 1st. Investors of record on Friday, March 1st were issued 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 2.87%. PepsiCo’s dividend payout ratio (DPR) is presently 77.02%.

Analysts Set New Price Targets

Several equities research analysts have commented on PEP shares. StockNews.com lowered PepsiCo from a “buy” rating to a “hold” rating in a research report on Monday, February 12th. Deutsche Bank Aktiengesellschaft raised their price objective on shares of PepsiCo from $181.00 to $184.00 and gave the stock a “hold” rating in a research note on Friday, February 9th. JPMorgan Chase & Co. raised their price objective on shares of PepsiCo from $178.00 to $181.00 and gave the stock a “neutral” rating in a research note on Wednesday. Barclays raised their price objective on shares of PepsiCo from $183.00 to $184.00 and gave the stock an “overweight” rating in a research note on Friday, April 12th. Finally, Argus cut shares of PepsiCo from a “buy” rating to a “hold” rating in a research note on Wednesday, April 3rd. Six analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $187.33.

Institutional Investors Weigh In On PepsiCo

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. LFA Lugano Financial Advisors SA raised its holdings in shares of PepsiCo by 80.5% during the 4th quarter. LFA Lugano Financial Advisors SA now owns 157 shares of the company’s stock worth $27,000 after acquiring an additional 70 shares during the period. Fortis Group Advisors LLC raised its holdings in shares of PepsiCo by 100.0% during the 4th quarter. Fortis Group Advisors LLC now owns 194 shares of the company’s stock worth $33,000 after acquiring an additional 97 shares during the period. Life Planning Partners Inc purchased a new position in shares of PepsiCo during the 4th quarter worth $34,000. Kathleen S. Wright Associates Inc. purchased a new position in shares of PepsiCo during the 1st quarter worth $35,000. Finally, Naples Money Management LLC purchased a new position in shares of PepsiCo during the 4th quarter worth $36,000. Institutional investors and hedge funds own 73.07% of the company’s stock.

PepsiCo Stock Performance

The firm has a market cap of $242.15 billion, a PE ratio of 26.50, a price-to-earnings-growth ratio of 2.77 and a beta of 0.53. The firm has a fifty day moving average price of $168.84 and a 200 day moving average price of $167.63. 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.