PepsiCo (NASDAQ:PEP) Sets New 12-Month High – Should You Buy?

PepsiCo, Inc. (NASDAQ:PEP) reached a new 52-week high during trading on Thursday . The company traded as high as $170.97 and last traded at $169.2250, with a volume of 725172 shares changing hands. The stock had previously closed at $169.15.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. Loop Capital set a $164.00 target price on PepsiCo in a research report on Thursday, October 23rd. HSBC increased their price objective on PepsiCo from $152.00 to $175.00 and gave the company a “hold” rating in a report on Thursday, February 5th. Evercore lifted their target price on shares of PepsiCo from $152.00 to $165.00 in a report on Wednesday, February 4th. BNP Paribas Exane set a $191.00 price target on shares of PepsiCo in a research note on Wednesday, February 4th. Finally, Wells Fargo & Company lifted their price objective on shares of PepsiCo from $154.00 to $165.00 and gave the company an “equal weight” rating in a research note on Wednesday, February 4th. Eight analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $167.68.

PepsiCo Stock Performance

The company has a debt-to-equity ratio of 2.06, a current ratio of 0.85 and a quick ratio of 0.67. The stock’s 50-day moving average is $148.78 and its 200 day moving average is $146.79. The stock has a market cap of $231.12 billion, a price-to-earnings ratio of 28.19, a P/E/G ratio of 3.18 and a beta of 0.40.

PepsiCo (NASDAQ:PEP) last issued its earnings results on Monday, February 2nd. The company reported $2.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.24 by $0.02. PepsiCo had a return on equity of 57.92% and a net margin of 8.77%.The business had revenue of $29.34 billion during the quarter, compared to the consensus estimate of $28.96 billion. During the same period in the prior year, the business posted $1.96 EPS. The company’s revenue for the quarter was up 5.6% on a year-over-year basis. As a group, analysts predict that PepsiCo, Inc. will post 8.3 earnings per share for the current fiscal year.

PepsiCo Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Friday, March 6th will be paid a dividend of $1.4225 per share. The ex-dividend date of this dividend is Friday, March 6th. This represents a $5.69 dividend on an annualized basis and a dividend yield of 3.4%. PepsiCo’s dividend payout ratio is 94.83%.

PepsiCo declared that its Board of Directors has initiated a share buyback plan on Tuesday, February 3rd that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the company to repurchase up to 4.7% of its shares through open market purchases. Shares repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Hedge Funds Weigh In On PepsiCo

Several hedge funds have recently bought and sold shares of the company. Cypress Capital Management LLC WY lifted its holdings in shares of PepsiCo by 8.3% in the fourth quarter. Cypress Capital Management LLC WY now owns 838 shares of the company’s stock valued at $121,000 after purchasing an additional 64 shares in the last quarter. United Bank raised its position in shares of PepsiCo by 3.9% during the 4th quarter. United Bank now owns 1,717 shares of the company’s stock worth $246,000 after purchasing an additional 65 shares during the last quarter. Three Bridge Wealth Advisors LLC grew its holdings in PepsiCo by 1.8% during the 3rd quarter. Three Bridge Wealth Advisors LLC now owns 3,870 shares of the company’s stock valued at $544,000 after buying an additional 68 shares during the last quarter. Koa Wealth Management LLC raised its holdings in shares of PepsiCo by 0.9% in the fourth quarter. Koa Wealth Management LLC now owns 8,007 shares of the company’s stock worth $1,149,000 after acquiring an additional 68 shares during the last quarter. Finally, Facet Wealth Inc. lifted its position in shares of PepsiCo by 3.2% in the third quarter. Facet Wealth Inc. now owns 2,221 shares of the company’s stock valued at $312,000 after acquiring an additional 69 shares in the last quarter. 73.07% of the stock is owned by hedge funds and other institutional investors.

About PepsiCo

PepsiCo, Inc (NASDAQ: PEP) is a multinational food and beverage company headquartered in Purchase, New York. The company develops, manufactures, markets and sells a broad portfolio of branded food and beverage products, including carbonated and noncarbonated soft drinks, bottled water, sports drinks, juices, ready-to-drink teas and coffees, salty snacks, cereals, and other convenient foods. Its leading consumer brands include Pepsi, Mountain Dew, Gatorade, Tropicana, Quaker, Lay’s, Doritos and Cheetos, among others.

Formed through the 1965 merger of Pepsi-Cola and Frito-Lay, PepsiCo has grown into a global business with integrated manufacturing, distribution and marketing operations.