PepsiCo (NASDAQ:PEP) Shares Climb 2.2% – Still a Buy?

PepsiCo, Inc. (NASDAQ:PEP)’s share price traded up 2.2% during trading on Monday. The company traded as high as $140.66 and last traded at $140.42. 9,109,457 shares changed hands during mid-day trading, an increase of 11% from the average daily volume of 8,203,774 shares. The stock had previously closed at $137.34.

PepsiCo News Roundup

Here are the key news stories impacting PepsiCo this week:

• Positive Sentiment: PepsiCo’s snack pricing and affordability measures are reportedly helping drive volume gains and stronger consumer demand. That could support sales, although higher costs and margin pressure remain challenges. Can PepsiCo’s Snack Pricing Strategy Drive Volume Growth?
• Positive Sentiment: An expanded Taco Bell beverage partnership preserves PepsiCo’s exclusive supplier role and adds distribution opportunities for products including Mountain Dew Baja Blast, with plans for new functional and energy drinks. What Is PepsiCo Gaining From Its Expanded Beverage Partnership?
• Neutral Sentiment: Investor commentary highlights PepsiCo’s dividend record and appeal to income-focused investors. Another comparison notes improving organic sales growth, but says the earnings recovery remains sluggish; these are opinions rather than new company guidance. Clorox vs. PepsiCo: Which Dividend Stock Could Make You Richer Over the Next 10 Years?
• Negative Sentiment: India’s food regulator accused PepsiCo and Monster of marketing products with an “energy drink” label to mislead consumers. The allegations could create reputational or regulatory risk, though the reports do not detail any financial impact. India says PepsiCo, Monster marketed with ‘energy drink’ label to dupe consumers

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the company. Morgan Stanley set a $145.00 price target on PepsiCo in a research note on Friday, October 9th. Citigroup reiterated a “buy” rating on shares of PepsiCo in a research report on Friday, October 9th. UBS Group decreased their price objective on PepsiCo from $159.00 to $145.00 and set a “buy” rating on the stock in a report on Friday, October 2nd. TD Cowen dropped their target price on PepsiCo from $145.00 to $133.00 and set a “hold” rating for the company in a research report on Monday, September 28th. Finally, Evercore reduced their price target on shares of PepsiCo from $150.00 to $135.00 in a research report on Wednesday, September 30th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, fourteen have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, PepsiCo presently has an average rating of “Hold” and an average target price of $143.28.

PepsiCo Stock Performance

The company has a market cap of $194.08 billion, a PE ratio of 16.32, a P/E/G ratio of 4.09 and a beta of 0.31. The business has a fifty day moving average of $133.29 and a 200-day moving average of $145.80. The company has a current ratio of 0.94, a quick ratio of 0.76 and a debt-to-equity ratio of 1.90.

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

Insider Activity

In other PepsiCo news, Director Robert C. Pohlad purchased 184,646 shares of PepsiCo stock in a transaction dated Wednesday, October 14th. The stock was purchased at an average price of $128.28 per share, with a total value of $23,686,388.88. Following the transaction, the director directly owned 433,009 shares of the company’s stock, valued at $55,546,394.52. This trade represents a 74.35% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 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 transaction of $4,053,900.00. Following the sale, the chief executive officer owned 491,645 shares of the company’s stock, valued at $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 owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the stock. New York Life Investment Management LLC raised its holdings in PepsiCo by 1.3% during the third quarter. New York Life Investment Management LLC now owns 235,957 shares of the company’s stock valued at $29,900,000 after acquiring an additional 2,941 shares during the period. Gen Wealth Partners Inc raised its stake in PepsiCo by 2.6% during the 3rd quarter. Gen Wealth Partners Inc now owns 3,294 shares of the company’s stock valued at $417,000 after purchasing an additional 82 shares during the period. DMKC Advisory Services LLC lifted its holdings in PepsiCo by 6.5% in the 3rd quarter. DMKC Advisory Services LLC now owns 24,039 shares of the company’s stock worth $3,046,000 after purchasing an additional 1,460 shares in the last quarter. Cpwa LLC lifted its holdings in PepsiCo by 11.9% in the 3rd quarter. Cpwa LLC now owns 2,054 shares of the company’s stock worth $260,000 after purchasing an additional 218 shares in the last quarter. Finally, Global Wealth Management Investment Advisory Inc. boosted its position in shares of PepsiCo by 16.1% during the third quarter. Global Wealth Management Investment Advisory Inc. now owns 36,335 shares of the company’s stock worth $4,604,000 after acquiring an additional 5,041 shares during the last quarter. Institutional investors own 73.07% of the company’s stock.

About PepsiCo

PepsiCo, Inc (NASDAQ:PEP) is a global food and beverage company whose portfolio includes Pepsi-Cola, Mountain Dew, Gatorade, Lay’s, Doritos, Cheetos, Quaker, Tostitos, Fritos, and SodaStream. Its products span carbonated soft drinks, sports and energy beverages, bottled water, juices, convenient foods, snacks, and other packaged food offerings.

The company sells products through retail stores, restaurants, food-service providers, e-commerce platforms, and other distribution channels. PepsiCo serves consumers in North America and international markets across Latin America, Europe, Africa, the Middle East, and Asia-Pacific.