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. Approximately 6,848,973 shares were traded 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.

More PepsiCo News

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

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Citigroup reiterated a “buy” rating on shares of PepsiCo in a research note on Friday, October 9th. Barclays lowered their price objective on shares of PepsiCo from $133.00 to $126.00 and set an “equal weight” rating on the stock in a research report on Monday, October 12th. Royal Bank Of Canada cut their price target on PepsiCo from $161.00 to $150.00 and set a “sector perform” rating for the company in a research note on Tuesday, October 6th. Morgan Stanley set a $145.00 price objective on PepsiCo in a research note on Friday, October 9th. Finally, Piper Sandler dropped their price objective on shares of PepsiCo from $176.00 to $140.00 and set an “overweight” rating on the stock in a report on Friday, October 9th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, fourteen have issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, PepsiCo has a consensus rating of “Hold” and a consensus target price of $143.28.

PepsiCo Stock Performance

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 50 day simple moving average of $133.35 and a 200-day simple moving average of $145.72. The firm has a market cap of $195.70 billion, a PE ratio of 18.04, a price-to-earnings-growth ratio of 4.24 and a beta of 0.31.

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

Insiders Place Their Bets

In other PepsiCo news, Director Robert C. Pohlad purchased 184,646 shares of the company’s stock in a transaction dated Wednesday, October 14th. The shares were acquired at an average price of $128.28 per share, for a total transaction of $23,686,388.88. Following the purchase, the director directly owned 433,009 shares of the company’s stock, valued at $55,546,394.52. The trade was a 74.35% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Ramon Laguarta sold 30,000 shares of the business’s stock in a transaction that occurred on 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 transaction, the chief executive officer owned 491,645 shares of the company’s stock, valued at approximately $66,435,988.85. This trade represents a 5.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.12% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of PEP. Core Capital Management & Research inc. acquired a new stake in PepsiCo during the second quarter worth approximately $932,000. State Street Corp increased its holdings in PepsiCo by 1.7% in the second quarter. State Street Corp now owns 60,406,932 shares of the company’s stock worth $8,179,099,000 after purchasing an additional 987,582 shares in the last quarter. First Nebraska Trust Co acquired a new position in PepsiCo in the first quarter valued at approximately $10,782,000. The Manufacturers Life Insurance Company lifted its stake in PepsiCo by 19.0% in the second quarter. The Manufacturers Life Insurance Company now owns 1,110,852 shares of the company’s stock valued at $150,409,000 after buying an additional 177,468 shares during the period. Finally, Jennison Associates LLC boosted its holdings in shares of PepsiCo by 157.0% during the 1st quarter. Jennison Associates LLC now owns 529,129 shares of the company’s stock worth $82,168,000 after buying an additional 323,278 shares in the last quarter. 73.07% of the stock is currently 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.