PepsiCo (NASDAQ:PEP) Shares Increase by 0.4% - Is This a Good Time to Buy?

PepsiCo, Inc. (NASDAQ:PEP) saw a share price increase of 0.4% during midday trading last Friday. The stock reached a high of $146.17 before closing at $145.21. Approximately 1,020,708 shares changed hands during the trading session, a significant drop of 85% compared to the average daily trading volume of 6,731,028 shares. The previous closing price was $144.58.

Insights from Wall Street Analysts

Several analysts have provided insights regarding PepsiCo's stock. HSBC reduced its price target for PepsiCo from $186.00 to $170.00, maintaining a "hold" rating in their report on February 4th. On February 6th, StockNews.com changed its rating on PepsiCo from "buy" to "hold". Citigroup also lowered its price goal from $195.00 to $170.00 and labeled the stock as a "buy" in a note released on February 5th. Similarly, BNP Paribas adjusted their target on PepsiCo from $162.00 to $160.00 and rated the stock as "neutral". CICC Research reaffirmed a "market perform" rating on February 7th. Overall, one analyst has issued a sell rating, twelve rated it as a hold, and eight analysts have given it a buy rating. According to MarketBeat.com, the average rating for PepsiCo is "Hold", with a consensus target price of $171.47.

PepsiCo's Stock Performance Overview

PepsiCo boasts a market capitalization of $197.45 billion, a PE ratio of 20.73, and a P/E/G ratio of 2.89. The stock has a beta of 0.54, reflecting lower volatility. Its fifty-day moving average price stands at $150.09, while the 200-day moving average price is $163.41. The quick ratio and current ratio are noted at 0.70 and 0.82, respectively, with a debt-to-equity ratio of 2.05.

The last quarterly earnings were reported on February 4th, where PepsiCo announced earnings of $1.96 per share, surpassing the consensus estimate of $1.94 by $0.02. The company recorded a return on equity of 58.87% and a net margin of 10.43%. The reported revenue for the quarter was $27.78 billion, slightly under the expected $27.89 billion. This marked a 0.2% decline in year-over-year revenue, compared to $1.78 earnings per share in the same quarter a year earlier. Analysts project that PepsiCo, Inc. will report approximately 8.34 earnings per share for the current fiscal year.

Dividend Announcements from PepsiCo

PepsiCo recently announced a quarterly dividend of $1.355 per share, which will be paid on March 31st to stockholders on record as of March 7th. The ex-dividend date is March 7th as well. This equates to an annualized dividend of $5.42, yielding approximately 3.76%. Currently, PepsiCo's dividend payout ratio is around 77.99%.

Institutional Investor Activity in PepsiCo

Recently, a number of large investors have made changes to their holdings in PepsiCo. Highline Wealth Partners LLC purchased a new stake worth about $28,000 in the third quarter, while WealthTrak Capital Management LLC acquired a similar stake during the fourth quarter. Collier Financial also initiated a new position in the fourth quarter, valued around $28,000. Legacy Investment Solutions LLC made a $31,000 investment in the third quarter. Additionally, Rakuten Securities Inc. boosted its holdings by 93.2% in the third quarter and now owns 199 shares valued at about $34,000 after acquiring an extra 96 shares last quarter. Institutional investors currently hold approximately 73.07% of the stock.

Understanding PepsiCo's Business Model

PepsiCo, Inc. is engaged in the production, marketing, distribution, and sale of a wide variety of beverages and convenient foods worldwide. The company operates through several segments, including Frito-Lay North America, Quaker Foods North America, and PepsiCo Beverages North America, as well as various international segments.

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